We recently compiled a list of the 12 Best Broadcasting Stocks to Buy Right Now. In this article, we are going to take a look at where Sirius XM Holdings Inc. (NASDAQ:SIRI) stands against the other broadcasting stocks.
The global broadcasting and cable TV market size was estimated at $356.45 billion in 2024, according to Grand View Research. It is projected to grow at a CAGR of 4% from 2025 to 2030 and reach $449.91 billion. This is driven by the increasing demand for on-demand and live content, which is fueled by the rise in digital consumption and global connectivity. Viewers seek content in high-definition, which includes news, sports, and entertainment. Rising income levels and increased television ownership in today’s emerging markets are also behind this demand. Broadcasters capitalize on these trends by offering flexible subscription models and specialized content for a broader audience base.
This industry is supported by the governments, technological advancements, and evolving consumer demands. Government initiatives, such as subsidies and investments in digital infrastructure, are expanding access to broadcasting services, particularly in underserved areas. It’s capitalizing on digital platforms, which offer streaming and hybrid models to reach diverse audiences and cater to their preferences. Technological innovations, which include 5G, cloud-based broadcasting, and AI-powered personalization, are all enhancing the viewer experience and driving demand for higher-quality content.
NewscastStudio recently reported that the dominance of mobile devices in content consumption is fundamentally reshaping the broadcasting landscape. There are 4.88 billion smartphone users globally and mobiles account for over 60% of global internet traffic. Therefore, broadcasters are prioritizing mobile-first strategies. This shift necessitates a significant adaptation, moving beyond traditional television formats. Key changes include an emphasis on vertical video formats, which mirrors the dominant style on platforms like TikTok and Instagram. Broadcasters are increasingly creating content specifically for mobile viewing by recognizing the need to optimize for smaller screens and shorter attention spans. Interactive elements like live polls, chats, and games are also being integrated to enhance viewer engagement and create the interactive nature of social media.
Production processes are now centered around mobile viewing experiences, and consider factors like background viewing and optimizing for limited bandwidth. The expansion of 5G networks is crucial for this, as it enables faster and more reliable data transmission. Advanced compression technologies are also vital for ensuring seamless streaming experiences, especially in areas with limited bandwidth. These changes reflect the need for broadcasters to be adaptable in a rapidly evolving media landscape.
The modern broadcasting environment embraces mobile-first strategies and invests in innovative technologies.
Methodology
We first sifted through ETFs, online rankings, and internet lists to compile a list of the top broadcasting stocks. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a hand, counting the money from the subscription fees of the Entertainment Communication Services company.
Sirius XM Holdings Inc. (NASDAQ:SIRI)
Number of Hedge Fund Holders: 49
Sirius XM Holdings Inc. (NASDAQ:SIRI) is an audio entertainment company in North America. It operates satellite radio and streaming services. It offers a range of audio content, from music and sports to news and podcasts. It also provides connected car services and advertising solutions.
The company’s broadcasting segment saw mixed results in Q3 2024. While self-pay net additions increased by 14,000, which was an improvement year-over-year, advertising revenue declined by 2% due to market softness. Podcast revenue, however, increased by 6%, with demand outpacing supply. The company’s total revenue was $2.17 billion, a 4% decline year-over-year, primarily due to a 5% drop in subscriber revenue.
Sirius XM Holdings Inc. (NASDAQ:SIRI) expects advertising revenue to continue to be impacted in Q4, which leads to a $75 million reduction in the company’s overall revenue guidance. Despite the advertising challenges, the company is investing in its ad tech stack and podcast content, such as Unwell, to drive future growth in this segment. Unwell is a podcast network with a strong following among Millennials and Gen Z, recently acquired by Sirius XM Holdings Inc. (NASDAQ:SIRI). It’s also growing its subscriber base through new pricing and packaging strategies, as well as content enhancements.
Overall SIRI ranks 2nd on our list of the best broadcasting stocks to buy now. While we acknowledge the potential of SIRI as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SIRI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
