Sirius XM Radio Inc (NASDAQ:SIRI) the last wave?
Sirius XM Radio Inc (NASDAQ:SIRI) is America’s largest subscription radio broadcaster and has in excess of 23M paying users. Its product offering includes sports music, talk, news, traffic, and weather and entertainment channels. Approximately 100 different stations are broadcast via its satellite radio systems. Its very scale permits it access to other streaming content, including the expensive ones like NFL matches. In the future, its scale will be the one differentiating factor from its peers and will ward off news entrants. Since its structure needs hefty capital-investments, it is difficult to duplicate.
Music on wheels
Over the next few years, its subscriber growth will widen the gap further. The company management seeks to achieve this by training the spotlight on the vehicle segment. A large number of people tune into their favorite radio stations while they are on the road and Sirius wants to capitalize on this trend. The idea in itself is a good one, but there really seems to be nothing that is startlingly novel in it. If you look a little under the hood of this vehicle that SIRI plans on using to expand its reach, you just might see an unprecedented issue.
As the world hurtles into the next century it seems like the cars may not have radios at all. Even current day vehicles don’t really sport any radios, they are equipped with “infotainment systems,” online music and satellite services. They have web enabled graphics and navigation to boot. All you need is a cloud player like Amazon and you can access thousands of your favorite songs at the touch of a button. You can stream almost any music album you want via Spotify. HD radio is just a breeze.
By the looks of it, car radio is almost on the way out of the car dashboard and in the next five years, it might even be officially called an antique piece that you can ogle at in a museum. A lot of radio channels bank on commuter audiences but what’s important is to peer into those cars and see who’s listening to them and cater to the younger crowd.