Sirius XM Radio Inc (SIRI) Is a Used-Car Salesman

Frear was asked toward the end of the presentation if the buyers of new cars that seamlessly allow smartphone owners to stream Pandora Media Inc (NYSE:P) through their dashboards convert at a lower rate than buyers of more conventional cars. Critics have argued that Sirius XM is a transitory technology and Pandora — with its growing user base — will begin to eat into Sirius XM Radio Inc (NASDAQ:SIRI) as it becomes more accessible on the road.

Well, Frear surprised the audience by pointing out that conversion rates have clocked in higher for high-tech cars. He was puzzled by the data at first, but his theory is that the kind of early adopter that wants that kind of dashboard technology is already consuming across multiple channels. They may stream Pandora, but they still value Sirius XM’s premium content offerings.

Then again, let’s take this migration cycle one step at a time. Let’s let the first wave of early Sirius XM Radio Inc (NASDAQ:SIRI) cars begin working their way through the used-car market.

Sirius XM is just scratching the surface.

The article Sirius XM Is a Used-Car Salesman originally appeared on Fool.com and is written by Rick Munarriz, Munarriz.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Automatic Data Processing.

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