When the concept of satellite radio came about, many people scoffed at the idea. Why pay for something you get 100% for free? I was one of these people. Why would I spend my money on a subscription to SiriusXM (Nasdaq: SIRI)?
Well, one day I decided to take the plunge, just to see what it was all about. The result was bittersweet. I was happy with the large variety of programming, and commercial-free music. I was saddened that it took me so long to buy in.
After all, I spent 4 good years driving across the state to go to college and those drives were annoying when it came to constant need to find new FM radio stations to listen to.
But now I am a SiriusXM diehard. However, when I say this stock is one to hold long term, it is not because I am a fan of the service. It is because of everything the company has going for it.
Let’s take a look at all this in greater detail.
The History Of SiriusXM
In the beginning, there were two satellite radio companies, XM and Sirius. XM was the larger of the two, and while that company had a great head start, Sirius had the greater minds in terms of management.
The people running Sirius were looking long term and knew that to not only survive but also thrive, they needed the names and content to get people to pay for a subscription. So they started acquiring them.
They partnered with well known DJ’s for their music channels. They brought in top talk show talent, like Howard Stern, Covino and Rich, Martha Stewart and others.
This led to them slowly closing the gap between the companies and eventually agreeing to buy out XM radio to become SiriusXM.
During this time, the stock price was in a tailspin, mainly due to short sellers not believing in the company. At one point, the stock was trading at just $0.05 a share. Now it is over $6 and doesn’t get the short seller interest like it once did. Thanks to Tesla for this!
How SiriusXM Continues To Innovate
Over the years, SiriusXM didn’t disappoint when it comes to offering more for its listeners. Whether it is more channels, more content, or listener specials, like listener only concerts, they keep their fans loyal.
