Mutually beneficial: Apple + Sirius XM partnership

“The potential synergies between Sirius XM and Apple are now becoming too big to ignore. Both companies have huge strengths to offer each other, particularly where they both have marked weakness. The iPod has 70% market share in the MP3 player market (according to the most recent NPD data) and Apple’s iTunes is by far the number one source for online music delivery, but both are lacking live content and an effective means of music discovery,” Demian Russian writes for Satwaves.

“Sirius XM has been hugely popular with those that grew up with and have a thirst for the golden age of radio, but has yet to penetrate the younger tech-oriented generation. Apple’s strong relationship with this tech-engulfed demographic makes them an ideal partner. Likewise, Sirius XM could provide the missing link in Apple’s music business with sorely needed live content and music discovery,” Russian writes.

“The potential impact of the looming Q2 release of the Sirius XM iPhone/iPod Touch app should not be underestimated. Think of it as Sirius XM getting into the dash of a new OEM partner – minus the normally related radio subsidy and revenue sharing costs. That’s where the similarities end. What OEM sold 13.7 million of one of its models last year? Analysts are looking for as little as 9 million total autos sold in the US this year. Apple sold those 13.7 million iPhones in 2008 and there are now over 37 million iPhones/iPod Touches out on the street,” Russian writes.

“This could be a huge win for both companies. What if iTunes visitors could subscribe to and stream Sirius XM right through the iTunes platform? What if when they heard a song they liked, a single click could purchase that song? The ability to stream Sirius XM through iTunes would drive customer traffic there — and not just any kind of customers, but the kind of customers that linger around the store until they find something they like, the kind of customers that keep coming back day after day,” Russian writes. “Sirius XM would add the kind of music discovery to iTunes that you just can’t get with 30-second song samples. Apple’s combination of marketing prowess and large engaged user base would be a huge asset in Sirius XM’s future subscriber growth.”

Full article here.

[Thanks to MacDailyNews Reader “Carl H.” for the heads up.]

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