Sirius XM to Launch Netflix Is A Joke Radio on April 15
Sirius XM SIRI and Netflix NFLX recently announced a full-time comedy radio channel, Netflix Is A Joke Radio, exclusive to Sirius XM’s platform.
The channel, which will be available from Apr 15, 2019 on Sirius XM’s channel 93, will feature a variety of comedy content from Netflix. The channel will showcase highlights from A-listers like Ellen DeGeneres, Trevor Noah and Adam Sandler to name a few. Additionally, Sirius XM subscribers will have access to Netflix’s existing and upcoming shows as well as original programming.
Moreover, Sirius XM subscribers will be the first to have access to a few clips from Netflix’s upcoming stand-up specials on the radio channel. Further, a daily show with original content may soon be available on Netflix Is A Joke Radio. Notably, “celebrity guests and comedians” will discuss about the popular topics for a day in the daily show.
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Can the Deal Boost Sirius XM’s Subscriber Base?
Sirius XM’s exclusive deal will be the perfect offering for it to onboard users who were not originally subscribed to its services.
Sirius XM, which is already benefiting from growth in subscriber base and higher average revenue per user (ARPU), is likely to keep the trend alive by partnering with the likes of Netflix. The acquisition of Pandora will also be a key catalyst in this regard.
Additionally, the flexibility to listen to Netflix’s popular content on the go coupled with Netflix’s popularity among the U.S. audience may help Sirius XM retain existing user base.
Moreover, Sirius XM will reap the benefits of Netflix’s investments in comedy. Netflix, over the past few years, has teamed up with key talent and on boarded many international comedians. Further, the company released a large number of stand-up specials on 2019 New Year's Eve. Comedians from 47 countries representing 13 regions performed on a single day.
However, Sirius XM faces significant competition from the likes of Spotify SPOT and Apple AAPL.
Spotify and Apple Adding Subscribers Quickly
Spotify has the largest subscriber base compared to Sirius XM and Apple. The company had 96 million premium subscribers at the end of 2018, up 36% year over year. Additionally, total monthly active users (MAUs) increased 29% year over year to 207 million.
Google Home promotion was one of the key reasons behind Spotify’s subscriber growth. Moreover, Spotify may witness further growth in user base owing to its distribution deals with the likes of T-Series in India.
Apple’s subscriber base of 56 million subscribers in 2018 was also higher than Sirius XM’s subscriber base of more than 34 million.
Spotify’s recent entry in India and Apple Music’s price cut in the country are some of the steps Sirius XM’s competitors are taking to increase their subscriber base. This does not bode well for Sirius XM.
Sirius XM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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