Tomahawk, WI 04/09/2014 (Basicsmedia) – Unlike in the TV series Game of Thrones, we do not know for sure if bad times are ahead for Sirius XM Holdings Inc. (NASDAQ:SIRI). But by all indications, the business environment is getting stiffer for the company and it will have to work hard to maintain its profitability and to keep growing.

Diverse Competition

Competition to Sirius XM Holdings Inc. (NASDAQ:SIRI) is coming from many different quarters. Apple Inc. (NASDAQ:AAPL) has launched its CarPlay system in collaboration with major global auto manufacturers including luxury brands Mercedez-Benz and Ferrari who’ve already rolled out CarPlay in their models. Other manufacturers are launching CarPlay-fitted models soon. Microsoft Corporation (NASDAQ:MSFT) is launching its own version of Windows in the car to compete with Apple’s CarPlay.

Sirius is facing more headwind in the form of competition from the likes of internet radio and music streaming service provider Pandora Media Inc (NYSE:P) and Spotify.

New Initiatives And Deals

Being the official partner of MLB, Sirius will offer extensive coverage of the 2014 MLB season. Hall of Fame woman golfing legend Annika Sorenstam is hosting a new exclusive series on SiriusXM PGA Tour Radio. Continuing on the golfing theme, Sirius announced on April 7 that it is going to provide the most extensive hole-by-hole coverage of the flagship event of the US PGA Tour — the Masters Tournament from the Augusta National Golf Club.

Sirius XM Holdings Inc. (NASDAQ:SIRI) generates most of its revenue — 86% — from paid subscribers mostly located in the U.S. and Canada. Sirius is available from car rental giant Hertz Global Holdings, Inc. (NYSE:HTZ) and Sirius has announced a deal with Avis Budget Group Inc. (NASDAQ:CAR) which will make Sirius satellite radio available to Avis’ customers as a paid feature that will cost $6.99 for the first day and $3.99 for each additional day subsequently.

Sirius Financials

Sirius reported $1.0 billion in 4Q2013 revenues and $3.8 billion for FY2013. It reported $65 million in net income for 4Q2013 and $377 million for FY2013.

Liberty Media is the majority owner of Sirius holding 53% of the company’s shares. With $1.76 billion spent in 2013 to repurchase 520 million its shares, Sirius is making a serious effort to keep the share price high. It has a solid paying subscriber base of 21.1 million.

Whether the future scenario for Sirius XM Holdings Inc. (NASDAQ:SIRI) is a sunny summer or a gloomy winter remains to be seen.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.