NEW YORK ( TheStreet) -- There's never a dull moment in SIRI-land. Shares of Sirius XM ( SIRI) jumped more than 3% Wednesday on news that the satellite radio provider will offer subscription trials to customers that rent vehicles from Avis Budget ( CAR).
If you recall, since Liberty Media (LMCA) announced that it was no longer interested in buying the remaining portions of Sirius it doesn't already own, Sirius stock has been in a perpetual decline despite bullish notes from three analysts who have issued price targets on Sirius stock of $4 or more. The stock closed Wednesday at $3.34; shares are down 4.2% year to date.
Investors are jumping for joy, applauding the new Avis Budget relationship. Details of the deal suggest that Sirius' programming will be made available to Avis Car Rental and Budget Car Rental fleets. All told, this will expose potential Sirius subscribers to roughly 60% of Avis Budget vehicles across the country now.
Rick Munarriz of The Motley Fool calls this a "big win for Sirius XM." But is it? I fail to see what the big deal is. The agreement says Sirius will be made available as a premium add-on, which means customers will have to pay to listen. I don't see how it helps consumers who don't already know about Sirius gain exposure to the service.
Customers who want the service have to shell out an extra $6.99 for the first day of the rental and $3.99 every day after that. This fee is on top of what they must pay daily for the car.