Leading satellite radio company
Sirius XM Holdings Inc.
) has added two radio channels to its portfolio. Following this
development, the company shares rose 2.5% yesterday.
One of the channels, Raw Dog Sirius XM Comedy Hits channel,
will broadcast The Comedy Cellar show from Apr 10. The show will
be hosted by comedians Dan Naturman and Noam Dworman, owner of
the well-known Comedy Cellar Club.
The other channel to go live is Catholic Channel, which will
run from Apr 21 to 27. This channel will cover the forthcoming
canonizations of late Pope John Paul II and Pope John XXIII.
We expect these channels to help the company gain subscribers.
In fiscal 2013, the company had 1.66 million subscribers,
significantly above the projected 1.60 million customers.
Continuous launch of innovative services are likely to act as
tailwinds for the company while moving ahead.
Sirius XM is set to diversify its business model from a pure
radio entertainment provider to a web-based safety and navigation
information provider for cars as the company is facing
competitive threat from several fronts. The iTunes online radio
) coupled with
) streaming services for
) and Android-based smartphones will act as headwinds for the
company going forward. Consequently, Sirius XM is partnering with
major car manufacturing like Acura, BMW, Hyundai, Infiniti,
Lexus, Nissan and Toyota in order to provide strong telematics
Sirius XM believes that new cars sold with satellite radios
should reach 11 million in 2014 as against 10.7 million last
year. The figure is expected to double in the next five years. As
a result, Sirius XM remains highly optimistic about achieving
nearly $100 million revenue in fiscal 2014 from its connected
vehicle service business. Moreover, the acquisition of the
connected vehicle services division of Agero is expected to be a
long-term growth driver for the company.
Sirius XM currently carries a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Other better-ranked stocks worth considering in this sector
AMC Networks Inc.
Entravision Communications Corp.
). All three currently carry a Zacks Rank #2 (Buy).
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