Dallas, Texas 12/25/2013 (FINANCIALSTRENDS) – SIRIUS XM Radio Inc. (NASDAQ:SIRI) is all set to diversify the company’s business model. It is now transition from pure radio-entertainment provisioning to a web-based navigation and safety information provider for vehicles. SIRIUS XM Radio Inc. (NASDAQ:SIRI) has decided to acquire Agero Inc’s connected vehicle-services unit. This acquisition of Agero’s telematics business will allow SIRIUS XM Radio Inc. (NASDAQ:SIRI), to offer wireless and satellite services.
The projection is that there will also be a string demand for light-utility vehicles and currently, SIRIUS XM Radio Inc. (NASDAQ:SIRI offers its satellite-radio broadcasting services to approximately 24 percent of the cars in the United States. SIRIUS XM Radio Inc. (NASDAQ:SIRI) has also extended the Honda contract up until 2020. Analysts believe that this will also fuel the company’s satellite radio business.
What is also true is that the company has been facing competition from various avenues. A front-running car-information system manufacturer, Pioneer System has unveiled “AVIC-X920BT”, its new car stereo that also supports Internet radio. This product is able to latch onto Pandora’s Internet radio-settings via iPods or iPhones and can also be translated into easy access to create some customized music-stations for users while they are driving.
Pandora has more than 80M registered users in the United States and it provides its unique algorithm that improves the intrinsic-quality of music. Pandora has developed streaming services for Android-based and BlackBerry smartphones in addition to what it had developed for iPhones. Apart from this, the online radio service is also proving to be a threat to SIRIUS XM Radio Inc. (NASDAQ:SIRI).
About the company
SIRIUS XM Radio Inc. (NASDAQ:SIRI), is the largest subscription radio-broadcaster in the U.S and has more than 23M paying users. The company has product offerings like talk, news, sports, music, traffic and weather as well as entertainment channels and almost 100 stations are broadcast via the company’s satellite radio systems.