Stock prices for Sirius XM are barely over the $2 mark, but the satellite radio company believes that it can become profitable again through used car sales. GM and Sirius XM have teamed up to give previously owned car buyers a great promotion. For three months, all cars purchased from authorized GM dealerships will be listen to Sirius XM radio for free. This offer has been extended to all vehicle sold from GM lots, even vehicles that have been manufactured by other companies.
The truly strange thing about Sirius XM’s lack of success is the fact that there are no other competing satellite radio companies. Pandora, which started as a web based radio company, has gone public and is looking to get into the mobile market. Because users have more music customization options with Pandora, Sirius XM could be in trouble. For starters, Pandora subscribers only have to pay one price. By comparison, Sirius XM car radio listeners will have to pay an additional fee if they decide to tune in at home.
Pandora is already working on developing car radio equipment that will eliminate the need for drivers to listen with their smart phones. If Pandora can successfully segue from the web to the auto industry, Sirius XM will no longer have a fighting chance. Sirius XM has been offering free subscriptions to listeners for the last five years and its customer base has still not increased. Sirius XM used to be two separate companies before they merged into one.
