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February 11, 2013

StockCall.com Reveals Tends in Auto Sales and its Effect on Satellite and Internet Radio

By Shamila Janakiraman, TMCnet Contributor


Satellite radio company, Sirius XM Radio will benefit a lot from the boost in auto sales last year, which is expected to continue in 2013 as well according to StockCall.com, which has published the results of a comprehensive research study on Sirius and Pandora (News - Alert).

StockCall.com is a financial website which gives details for investors, empowering them with easy, precise and comprehensive research and opinions on stocks that are critical.

The state of the satellite radio industry depends on the growth of the auto industry. Increase in demand and cheap financing helped fuel this growth in 2012, which is seen as an indication of growth in the satellite radio industry.

Jim Meyer, CEO of Sirius pointed out that the company added over 500,000 new subscribers in 2012 which will increase further in 2013. Revenue for 2013 may grow to $3.7 billion.

According to StockCall, an important feature affecting satellite radio is the availability of Internet radio, which is treated both as a threat and opportunity by Sirius and other companies. To keep up with the demand and competition Sirius will be expanding its Internet capabilities.

“Sirius continues to broaden its Internet capabilities to expand the user experience and strengthen its in-vehicle technologies. The company’s personalized radio feature, MySXM is currently in public beta testing and will be available to SIRI’s Internet subscribers in the near future,” added Meyer.

Pandora Media, an online radio company, is one among three companies that provides over billion hours of digital content. With Sirius striving to expand its Internet capabilities Pandora Media’s business may be affected, said analysts.

To address the present situation Pandora Media reduced its fourth quarter outlook by bringing down its advertising spending due to the fiscal cliff.

StockCall also revealed that networking companies are evolving to stay relevant in the changing tech scenario. These companies are using different tactics for this purpose. Even major companies like Cisco (News - Alert) Systems are struggling to cope with fast changing dynamics, with their stock prices showing only marginal growth.

Growing trend of Bring Your Own Devices policy being adopted by enterprises is going to have major impact on the network solution companies, where industry players like Aruba Networks (News - Alert) will benefit, said StockCall analysts.




Edited by Ashley Caputo



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