This is the type of bullet point information that gives SiriusBuzz Premium members an advantage. The announcement by Apple that it intends to offer a Pandora-Like service is seen everywhere. Pandora stock took a big hit on the news, while SiriusXM did not. The reason is simple, SiriusXM has several distinct advantages over Pandora or a service that tries to emulate it. However, the audio entertainment landscape will forever change once Apple comes to town.
SiriusXM CEO Mel Karmazin has stated a few times that Pandora does not really make him nervous, nor Slacker, nor iHeart. What makes him nervous are companies like Apple and Google entering the space. That appears to be happening now, and as an investor in SiriusXM it is worth noting and monitoring.
The problem here is that a companies like Apple, Google, or Verizon all have the horses and cash to enter the market and even seek to dominate it if they so desire. These are companies that have grown into massive empires, and continuing that growth is a more daunting task each year. They start with the lowest hanging fruit and when that runs out try to move into a new area to forage. If Apple and Google get into a audio entertainment battle, it could leave several companies waking up and wondering what hit them.
This is not a doom and gloom piece, but rather a wake up call. We have been used to a playing field with a set number of players. Now there is a ringer entering the mix. If the game is compelling enough for that ringer, and he does not get bored by it, he can dominate the field.
SiriusXM will not be immune, but it is well insulated. It can become better insulated once the company finishes ramping up its Internet side of the business. In the end, there will be several players in the space. The key for SiriusXM is retaining subscribers, retaining exclusive content, and being perceived as a value by consumers.
In summary, Apple is not an immediate threat, but they are now on the radar more than before. The companies to watch (for the moment) that can cause a potential threat are Apple, Verizon, and Google.