Tomahawk, WI 04/04/2014 (Basicsmedia) – It seems some turbulence is headed towards Sirius XM Holdings Inc. (NASDAQ:SIRI) and the company may not quite be ready for it. Sirius has many exclusive offerings such as extensive coverage of the 2014 Major League Baseball season by virtue of Sirius being the Official Satellite Radio Partner of MLB. But that may not be enough to keep the competition at bay.

Competitors Galore

Apple Inc. (NASDAQ:AAPL) is expanding and diversifying the content on its iTunes Radio platform. Apple has also launched its unique CarPlay system with factory-level collaboration with major global automobile manufacturers. Mercedez-Benz, Volvo and Ferrari have already rolled out CarPlay in their on-road models and a bunch of other manufacturers are going to launch CarPlay-fitted models soon.

Is The New Deal Enough?

Sirius just announced a new deal with Avis Budget Group Inc. (NASDAQ:CAR) whereby Sirius satellite radio will be available as a paid feature to Avis’ car rental customers. How many customers will be willing to cough up the required $6.99 for the first day (and $3.99 for each subsequent day) remains to be seen.

This is the same sort of deal that Sirius already has with other car rental companies such as Hertz Global Holdings, Inc. (NYSE:HTZ). While a new deal with Avis will certainly pull in more revenue for Sirius, it needs more than just deals with car rental companies. Competition from Apple and Pandora Media Inc (NYSE:P) is on its way. One more competitor to Sirius — Spotify — appears to be preparing for an IPO. Spotify too has the same business model as Sirius — at least to the extent that it too gets most of its revenue from subscriptions.

How Strong Is Sirius?

The primary investor in Sirius is Liberty Media Corp (NASDAQ:LMCA) which owns 53% of Sirius shares. It expressed an interest recently to buy all of the shares of Sirius and then cancelled this offer.

Sirius XM Holdings Inc. (NASDAQ:SIRI) had 4Q2013 revenues of $1.0 billion and an EBITDA of $326 million for the same duration. EBITDA for FY2013 was $1.17 billion. All these point to the fact that Sirius has some serious numbers but the only question is whether it can keep growing these numbers.

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