Oct 08 2012
SiriusXM has serious work to do
SiriusXM Canada, the satellite radio company formed from Sirius and XM Canada, has been consistently in the red, posting $2.6-million loss in its most recent quarter.
SiriusXM would do well to keep its current position rather than try to compete with internet radio. Since “Internet radio and radio that is available on wireless devices are complementary services to commercial radio”, convenience and choice are losing power as selling points for satellite radio. However, some consumers still favour traditional in-car radios over online streaming. SiriusXM’s only hope of growth seems to be in targeting the millions of non-subscribers with satellite radio installed in their vehicles. No installation fee and a free trial could be enough to encourage customers to explore its exclusive access to entertainment networks.
Exclusive American programming like The Howard Stern Show currently bring in the majority of SiriusXM’s customers, but the addition of local talent could create interest among Canadian entertainment supporters. However, in order to retain customers, SiriusXM should improve the interface of its in-car system before working on its internet player to prevent its main product from being seen as out-dated. A plus is that with a near-monopoly in satellite radio, SiriusXM has the potential to build a strong customer base if it targets the right demographics.