Sirius XM (SIRI, Financial) is on a roller coaster ride. This is clearly evident from the strong performance by the company in the recently reported third quarter. The company performed well on the back of strong net additions of customers. Sirius also posted an upbeat outlook as it is focusing on several aspects to improve its financial performance.
Seeing good traction
The company is pleased to have achieved positive results in car penetration rate. This rate is continually increasing and the company is confident of securing its long term objectives in this segment. This will be a good move by Sirius which will help it to be a good long-term holding as well. Sirius is also seeing great opportunities in the pre-owned vehicle segment. The most exciting thing is that every major auto maker now offers SiriusXM trial with certified preowned vehicles at every franchise dealer location. Sirius is pleased to see an impressive improvement in the preowned vehicle sales with a satellite radio. This is also expected to benefit Sirius in a long way driving meaningful revenue to the camp.
In addition, Sirius is also engaged in searching new ventures that can lead to profitability. Under this, its auto marketing team is focusing on new business initiatives. It is targeting owners who already purchased vehicles from either independent dealers of others through private sales. Sirius’ efforts are going well as the company is seeing good improvement in this and it seems well positioned for its strategy of 2 million self-pay additions from the second owner market.
New features are essential
Sirius is mainly focusing on the content of its core radio business. It is adding many new features and programs to make it more attractive to listeners. The company has recently added some new channels, new hosts and new shows as an initiative to this new growth strategy. Moving on, the company is also working on providing good music to the listeners and under this it has also three new music channels for dance, women’s pop and country audience. This is not enough in the camp while Sirius also added some other channels such as a full-time channel of Joel Osteen Radio for the Christian listeners.
Sirius is also working closely with YouTube and has come up with YouTube 15 which is an exclusive weekly countdown show that uses its trending data to show the latest music online. Its efforts are getting widespread soon. For example its recently launched new daily talk show with Jenny McCarthy is gaining a lot of media attention which is helpful for it to get much traction in the market, improving its user engagement.
Moving on, Sirius is also bringing some more introduction under this; it is well focused on launching a full-time channel from international music star PitBull. With this growth momentum, Sirius is confident of becoming a clear content leader in audio entertainment with such a broad and varied portfolio of products. In addition, the company has some good investment plans in some key initiatives as well. It is planning to invest well in the streaming business to make it a better offering,
Conclusion
In the car offering Sirius sees bright opportunities for growth. It is planning to introduce new features in this over IP. With this, Sirius will be in a good position to utilize connectivity and new sources of data to better engage and interact with its subscribers. The company is counting this initiative to be a good growth driver of the business.
