SiriusXM is a leading programer of subscription audio. It offers a wide variety of content, including sports, news, music, talk, comedy and more. Currently, the company has a subscriber base of 32 million. And, the service has expanded its reach by signing up 1.1 million new paying subscribers in the first nine months of the year.
SiriusXM"s revenue rose 8.3 percent to over $4 billion in the first three quarters of the year. Additionally, the company signed a deal with Maxar Technologies to bring the Beatles Channel to its broadcasts. In addition, the company announced that it will open a state-of-the-art broadcasting center in Miami, Florida, in 2023.
SiriusXM is a subsidiary of Liberty Media Corporation, a large conglomerate that owns several other companies. Some of these include IHeartMedia, Live Nation, Pandora, Simplecast and Liberty Formula One.
The company"s shareholders include Liberty Media, IHeartMedia and four other investors. Berkshire Hathaway holds about twenty million "A" shares, representing roughly eight percent of the company"s total holdings.
Berkshire Hathaway, which has been known for its long-term holding of NTT DoCoMo stocks, has taken a major stake in SiriusXM. At the time of this writing, the company had an equity stake in the fund valued at over a billion dollars.
Berkshire Hathaway"s investments are an indication that the company is bullish on SiriusXM. While the company"s current valuation is less than a billion dollars, the number of shares it owns is almost two times the value of its other holdings.
SiriusXM"s CEO discussed the company"s future plans for digital audio advertising. This includes the potential for voice recognition technology. Nuance is working on the feature. Eventually, voice recognition could make it easier for consumers to find the content they want through the Internet.
In addition to ad supported radio, the company also provides podcasts. Listeners can create their own stations with the help of a search engine or select from content provided by Sirius XM.
The company recently announced that Howard Stern will continue to host his radio show exclusively on SiriusXM. Stern first joined the service fifteen years ago. But, terrestrial radio didn"t appreciate his success. Now, the service will be able to benefit from his popularity.
In the next few months, the company plans to launch a new service called Soundtrack Your Brand. It combines data analysis with expertise to deliver content that increases sales.
On the downside, the company"s current rate standard isn"t perfect. According to the Copyright Royalty Board, SiriusXM must pay 15 percent of its revenue when it starts in January. That means it has to make an adjustment to its business model.
Berkshire Hathaway"s interest in SiriusXM is a sign that the company is expanding its reach. As a result, the company has increased its rates.