In an effort to enhance its services, SIRIUS XM Radio Inc. (SIRI - Free Report) is offering the new Sync AppLink technology for Ford Motor Co.’s (F - Free Report) vehicles. The technology will allow users to use voice commands to listen to their favorite channels while driving.
The new software is also available on Apple Inc.’s (AAPL - Free Report) devices and Google Inc.’s Android-based handsets. Hence, customers can access SIRIUS XM programs from these devices without even turning on the satellite radio hardware.
Customers buying the new Ford vehicles will get six months of free subscription to SIRIUS XM’s On Demand and MySXM services. Ford Motors will be the first to use the new service.
SIRIUS XM declared mixed financial results for the first quarter of 2013. The company’s bottom line was in line with the Zacks Consensus Estimate, while the top line failed to meet the same.
During the quarter, the company added 452,890 (up 11.9% year over year) net subscribers, which raised the company’s total subscriber base to 24,353,226. The company also estimates 1.4 million net subscriber additions in fiscal 2013.
Hence, we believe that such value-added services coupled with increasing channel line-ups will not only drive subscriber growth but will also help the company to counter competition from other media players like Pioneer System and Pandora Media, Inc.
However, mounting debt, higher programming cost and sluggish economic growth will continue to act as headwinds for SIRIUS XM going forward.
Based in New York, SIRIUS XM provides satellite radio services in the U.S. and Canada.
Currently, SIRIUS XM has a Zacks Rank #3 (Hold).