Monday, February 7, 2011

Sirius XM (NASDAQ:SIRI) Partners with Apple (NASDAQ:AAPL), Amazon (NASDA:AMZN)

Contrary to the sexed up hype surrounding Sirius XM (NASDAQ:SIRI), they're a tremendously vulnerable company, even though they will benefit in the short term from increased auto sales, as long at that lasts.

Knowing that, they've partnered with tech giants Apple (NASDAQ:AAPL) and Amazon.com (NASDA:AMZN) sell songs to customers, as evidenced on its new website which includes Amazon MP3 and iTunes purchase buttons.

With the majority of music listening being in a vehicle, this could eventually become a nice revenue stream for Sirius outside their usage fee.

Sirius has needed to find ways to tap into its existing customer base while they attempt to enlarge it. Including a service for existing customers to download music to their vehicle is a good way to generate new revenue.

Sirius was trading at $1.795, up $0.045, or 2.57 percent, as of 12:37 PM EST.

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