The notion of paying for radio service likely strikes some as preposterous. But that’s the foundation Sirius XM (NASDAQ:SIRI) was built on, and it’s made some headway since. In fact, now, it’s pursuing the next generation of listeners with a revamped app and new streaming plans.
Starting December 14, Sirius XM will roll out its new version of the app and a new streaming plan as well. The streaming plan will cost $9.99 per month, reports note, and Sirius XM built it specifically with “…millennials and younger…” in mind, noted Jennifer Witz, Sirius XM’s CEO. Sirius XM is likely hoping for a shot in the arm as its share price is down around 20% against this time last year. The new app will bring features familiar to the younger listener, particularly personalization on the landing page and an “always-on” curation system to help them find the music that best suits them.
However, Sirius may have another problem: alienating older listeners. The new app might not sit well with them, and Sirius is already recovering from one black eye from the Boomer crowd. Sirius recently moved the “Deep Tracks” classic rock station on its in-car interface, sending it up from its previous 27 all the way up to 308. Now, for most, this might mean a minor irksome discovery, a second or two of dial shifting, and an altered preset. But Sirius noted, adding insult to injury, that while Deep Tracks was still part of the in-car lineup: “…some radios may not be able to receive all channels.”
Is Sirius a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on SIRI stock based on two Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average SIRI price target of $5.06 per share implies 9.88% upside potential.
