A Prominent Boost for Sirius XM

Josef Ray is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

Sirius XMRadio (NASDAQ: SIRI), a broadcasting company based in New York City, is the primary source of satellite radio services in the United States.  The company airs its comedy, entertainment, news, traffic, sports, and weather programs by means of a subscription fee, which offers music and channel access over the worldwide web and mobile devices.  The subscription is offered on a yearly, semi-annual, quarterly, and monthly basis, and comes at a lower rate for prepaid, continuing plans, and multiple subscriptions. 

Notable Expansion of Network Availability

On Tuesday Jan. 8, Toyota Motor Corporation (NYSE: TM) announced that it will remarkably improve and intensify the accessibility of the satellite radio company across its complete array.  Toyota users will be capable of benefiting from the regular services of Sirius XMRadio, even if one’s ride is not yet equipped with the Japanese global automaker’s Entune system. 

What is interesting about this alliance is that Sirius will be made available as a typical element in the whole line-up of Toyota vehicles. They will come with a satellite radio and a three-month Sirius XMRadio subscription, which will provide a Toyota rider with the opportunity to access Sirius’ collection of channels that include music, live events, sports, news, and entertainment, amongst many others.

Sirius Getting Serious with the Competition

On Jan. 9, Clearwire Corporation (NASDAQ: CLWR) opened at $3.14, which was $0.20, or 7.19%, higher than the previous trading session.  So far, the mobile and wireless broadband communication services provider has grown 119.55% within the previous quarter. 

The company’s average low on a daily basis is $3.12 and the peak is $3.15.  Furthermore, the trading volume of 84 million is higher than the regular amount of 29 million shares.  A remarkable volume of call and put agreements were achieved throughout the previous trading session among the investors, suppliers, and buyers of Clearwire’s shares.  In fact, a sum of 54,249 calls and 101,490 bonds were exchanged, lifting a 1.87 put/call relation.

Equally, Sirius XMRadio recently announced that it would surpass its monetary guidance for the previous year, which saw the company accomplish a remarkable high of adding 2 million net subscribers.  This brings in the overall currently active subscription base to approximately 24 million.  For 2013, the financial guidance of the company includes a subscriber base of more than 25 million clients, proceeds in excess of $3.7 billion, the addition of more or less 1.4 million net subscribers, and an increase of roughly 1.6 million self-pay net users.

The Partnership May Prove to Be Fruitful

The recent improvement of Sirius is in fact the biggest update concerning the company in the recent years.  It is expected that when the broadcasting company sets its present and future goals in motion, the revenue will definitely leap.  In addition, the partnership with Toyota, one of the world’s leading providers of automotive vehicles, will undeniably heighten the earnings in the approaching quarters for both companies.  In fact, Sirius XM’s Executive Vice President and General Manager Steve Cook asserted that Toyota’s decision to make Sirius XM Radio available on its latest multimedia system shows both companies’ dedication to provide a kind of technology that will make being a Toyota rider more pleasing and entertainment-filled. 


JosefRayDagatan has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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