Exclusive content that people can access from any platform they want is why Sirius XM Canada (TSX:XSR) continues to grow despite increased competition from free streaming services, says the company’s boss.
Mark Redmond, CEO of Sirius XM Canada Holdings was on BNN’s “The Street” today with hosts Saijal Patel and Paul Bagnell, talking about the fact that the company’s stock is trading at multi-year highs.
Sirius, which recently passed the 2.3-million subscriber mark is growing its top and bottom lines. In the company’s most recently reported quarter it posted revenue of $70.7 million, up 10.8% from the same period last year. And the company turned a loss of two cents a share into a profit of three.
But in an era where a new, free app seems to pop up every day, can this trend continue? Redmond says yes.
“We have been competing with free since we launched,” said “Redmond. “Terrestrial radio is our biggest competitor and the streaming services have been around as well.”
The Sirius XM Canada CEO says many free services fail because there are, ultimately, costs associated with acquiring content, such as copyright fees and streaming fees.
Sirius is a popular pre-installed and after-market option for radios in cars, trucks and boats, but customers can access through satellite or through a smartphone, tablet or home computer. The company is partnered with every major professional sports league, and carries content from heavyweights such as Disney, Comedy Central, Howard Stern, and Oprah Radio.
Sirius XM Canada received CRTC approval on April 11, 2011 to merge XM Radio Canada and Sirius Canada services following the merger of their U.S. parents. XM Satellite Radio and Sirius Satellite Radio in the United States. Current chairman John Bitove’s Canadian Satellite Radio Holdings Inc., the licensee of the former XM Radio Canada, holds 30.3% of the company, the CBC, which was a major shareholders in Sirius, owns 20.4%, as does Slaight Communications. Sirius XM owns 25%.
At press time, shares of Sirius XM Canada were up .4% to $7.28.