The largest satellite radio company in the U.S. -
SIRIUS XM Holdings Inc.
) - has reached an agreement with
Ford Motor Co.
) to provide Ford customers a five-year subscription to SiriusXM
Traffic and SiriusXM Travel Link. These services will be available
on all Ford vehicles, starting with 2015 models that are equipped
with navigation facility.
Once implemented, Ford customers will be able to receive vital
information like traffic conditions, fuel price, movie listings,
sports scores and weather information through satellite from
SiriusXM. SiriusXM Traffic and SiriusXM Travel Link were first
promoted by Ford in 2009.
This Zacks Ranked #3 (Hold) stock will also offer buyers of new
Ford vehicles a six-month subscription to SiriusXM's All Access
Package. Additionally, they will also gain right of use for
SiriusXM's premium programs, SiriusXM Internet Radio on smartphones
and online access to siriusxm.com.
We believe this agreement with Ford will boost the company's top
line and serve as long-term growth driver for the company. SIRIUS
XM believes that new cars sold with satellite radios should toll 11
million in 2014 as against 10.7 million last year. Moreover, the
figure is expected to double in the next five years. As a result,
management remains highly optimistic about achieving nearly $100
million in revenues in 2014 alone from its connected vehicle
SIRIUS XM's agreement with Ford further indicates that the
company is diversifying its business model from being a pure radio
entertainment provider to a web-based safety and navigation
information provider for cars in the face of competitive threat
from several fronts.
Other Stocks to Consider
Some well-placed stocks worth considering in this sector are
LIN Media LLC
). Both these stocks holds a Zacks Rank #2 (Buy).
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FORD MOTOR CO (F): Free Stock Analysis Report
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SIRIUS XM HLDGS (SIRI): Free Stock Analysis
LIN MEDIA LLC (LIN): Free Stock Analysis Report
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