Sirius XM Holdings Inc. (NASDAQ:SIRI) announced its Canadian outfit has a signed a long-term deal with another Canadian outfit, Jaguar Land Rover. The deal insures that SIRI’s satellite radio platform will be pre-installed in every vehicle to leave the production line for years to come. It also includes a free three-month offer for SIRI’s services. The free offer will give purchaser’s access to the company’s SiriusXM offering that includes 120 channels of commercial free music. This also includes major league sports, news and exclusive talk and entertainment not available via other offerings.
Sirius XM Holdings Inc. (NASDAQ:SIRI) has a had a long standing relationship with Jaguar Land Rover and the addition of the free offer brings added value to buyers of the vehicles. It also opens up an opportunity for the company to add new subscribers, which is the metric most often used to value the company’s performance for investors.
The company’s Canadian holdings operate under the name of SiriusXM Canada. It currently has over 1.2 million subscribers and is considered the country’s leading audio entertainment provider. It broadcasts to 120 different channels that feature the hottest offerings in music, sports and special events. Commercial-free music is the big draw though as traditional radio stations are unable to offer the same product without the advertising dollars generated by commercial ads. They currently have deals with all the major sports leagues and also have exclusive contracts with Howard Stern, Comedy Central and Disney. The pre-installation off the system makes this deal even more valuable to Siri as it removes it as an option and exposes it to every purchaser. Combining that with the free three months could be a subscription boost that will help with the company’s important subscriber metric.
The stock is at a three-month high and looks like it is trying to regain the $5 level of the past. Its building support at $3.90 and if it can continue to remain strong should see an opportunity to break back to $5 soon.