After years of faltering despite great potential, recent business valuations of Sirius XM Radio provide a reason to be optimistic, Seeking Alpha reports.
It earned $0.01 per share in 2010, and has grown to $0.03 in the second quarter of 2011. On average, revenues have increased 63.4 percent over the past five years, and the company's ability to act as an original content provider and distribution channel provides a solid floor for its valuation.
The news source reports in a separate article that Sirius faces competition from stations such as Cumulus Media, Westwood One and Clear Channel, all of which offer services for free. Plus, Pandora is currently equipping cars with Pandora Radio, and its free services may encroach on Sirius' customers. Currently, Sirius has been able to maintain approximately 46 percent of the customers.
Sirius has partnerships with the NFL, MLB, NBA, NHL, PGA and NASCAR, in addition to the plethora of celebrities associated with the company - such as Howard Stern, Martha Stewart, Oprah Winfrey and Tony Hawk. These provide it with an enormous advantage over Pandora, which can't afford the royalties needed to attract a professional organization.