Tomahawk, WI 05/08/2014 (Basicsmedia) – For internet radio and music streaming giant Sirius XM Holdings Inc. (NASDAQ:SIRI), the future looks to be full of competition. Does Sirius have enough competitive advantage to survive into the next decade?

Sirius reported 4Q2013 and FY2013 revenues of $1.0 billion and $3.8 billion respectively and net income of $65 million and $377 million for 4Q2013 and FY2013 respectively. Sirius has more than 20 million paying subscribers.


It faces competition from different quarters: these include Pandora Media Inc (NYSE:P), Spotify and iTunes Radio from Apple Inc. (NASDAQ:AAPL). To survive and grow, Sirius needs to differentiate itself from the competition and offer exclusive content.

With Apple boasting of 200 million subscribers of its iTunes service, it can give Sirius some serious competition if and when it chooses to do so. Apple is getting into in-car entertainment with its CarPlay system which will be available as OEM equipment with many global automobile manufacturers including luxury brands such as Mercedes and Ferrari. Apple announced an agreement with NPR recently which makes Apple’s intent clear to make iTunes more than just a music library.

Sirius Moves

Sirius XM Holdings Inc. (NASDAQ:SIRI) announced a new deal with car rental company Avis Budget Group Inc. (NASDAQ:CAR) which is on the same lines as its existing deal with Hertz Global Holdings, Inc. (NYSE:HTZ).

Sirius will also be providing exclusive coverage of the 2014 Major League Baseball season as well as the U.S. PGA Tour. Sirius also announced a plan to simulcast NBC’s Today show for its radio listeners. Sirius already offers CNN, Fox News, CNBC, and MSNBC to its listeners and the availability of Today will expand the options for Sirius subscribers.

ABC’s hit morning show Good Morning America was once aired on XM radio before XM merged with Sirius. That experiment however was a failure.

With net subscribers of Sirius growing by 267,000 in 1Q2014 to hit 25.8 million, radio listeners are seemingly appreciative of Sirius’s initiatives. The growing subscriber base will surely sound like music to the ears of Sirius investors.

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