This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Sirius Would Get Bump From Apple's App Model

NEW YORK ( TheStreet) -- With all the excitement surrounding the shift from PC-focused Web sites to mobile apps it has been enormously profitable for investors to identify winners in the app space. We've already seen huge stock price appreciation from Netflix (NFLX) and Priceline (PCLN) on this thesis. Who's next?

The latest rumor out of the blogosphere is that Apple (AAPL) will be holding an event with Rupert Murdoch to unveil the $30 million iPad-only subscription news publication called "The Daily." This announcement, however, is bigger than Murdoch, who runs News Corp (NWS).


I think this will usher in a new era of app subscription services that will become significant profit generators for successful app developers. The a la carte model for newspaper and magazine publishers has never generated returns. The same can be said for television shows. Subscription payments along with advertising have proved to be the magic formula for content providers.

Which company is in the best position to take advantage of Apple's subscription offering? Logic suggests it will be a company that offers exclusive content; nobody wants to pay for content that can be found elsewhere on the Internet. Netflix offers a subscription service of movies that can't be streamed anywhere else and it has worked. Therefore, I think we might see a similar thing happen with Sirius XM (SIRI).

Sirius has taken its lumps over the years because of its high-cost structure to secure exclusive content, but if this company can re-sign Howard Stern, which looks very likely, and if it can get on stage with Apple's Steve Jobs to announce the app subscription service, this stock will soar.

I'm not buying into the rumor that Apple is going to pay Stern to come to iTunes. Stern is too crude for Apple's taste. The shock jock will renegotiate with Sirius which will give the stock a little bounce. Sirius then needs to take advantage of Apple's upcoming service.

Sirius has done well enough to reach the 20 million subscriber level, but there is no question that the process of installing a radio and subscribing through Sirius is a hassle. Being able to utilize the seamless App Store model would be a real bonus.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $126.41 -1.66%
FB $81.21 0.39%
GOOG $575.33 0.34%
TSLA $200.63 -0.89%
YHOO $44.16 0.39%

Markets

DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs