Earlier in December, Pandora shares flopped after reporting weaker than expected earnings.
While Pandora struggles to generate the subscription and ad revenue to justify its music costs, SiriusXM has benefited from a strong new and used car market in 2012, which has driven 2012 subscriber growth and helps to differentiate the service from competitors.
At the UBS Global Media Conference in early December, SiriusXM chief financial officer David Frear highlighted that the company's improving financial picture hinges on how its non-music offerings are driving subscription growth, primarily in new and used automobiles. Meanwhile, the company's moat around auto subscribers is growing, as car makers continue to post record sales figures.
"You don't have to pay for an 80's channel," said Frear at the UBS conference, of the value proposition SiriusXM offers outside of satellite music streams. The CFO added its non-music content like Howard Stern, nationwide sports play-by-play and specialized content like CNBC and Bloomberg radio that are driving the company's paid subscriptions.SiriusXM shares traded 2 cents lower in early Monday trading to $2.89. The company's shares have gained nearly 60% in 2012, on an improving financial picture and a deepening relationship with large minority owner Liberty Media (LMCA). For more on SiriusXM shares, see why the company's stock surge may not end in 2012. Follow @agara2004 -- Written by Antoine Gara in New York
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV