May 24, 2013
Sirius XM Radio (NYSE: SIRI) has 20.1 million subscribers and is the only satellite provider in the United States.[1] The high costs associated with satellite radio programming and subscriber acquisition cost (the price of recruiting new subscribers) are the real culprits of Sirius XM's negative margins.
Sirius XM is dependent on the automotive market because some auto makers include satellite radio units in their cars, which adds to Sirius XM subscription revenues. SIRI has partnerships with notable car companies such as Ford, GM, and Toyota. The company's heavy ties to the automotive market gives it big exposure to the health and cyclicality of the automobile industry.[2]
(Read more at Wikinvest
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