Pandora's quarterly results are reported on Thursday and this is the event where eyes of all the investors of other radio networks were set. Though the investors of Sirius XM do not think that these reports really matter, they can't even ignore them. They dynamically think that Sirius XM is a popular radio network and the results of Pandora would not affect it. It has been leading other radio networks since years, with Pandora trading below last year's IPO (Initial Public Offering) of $16. Though considering these terms, there is a need for Sirius XM to consider all these for right and appropriate decisions for future.
It is believed that, Pandora's popularity and development is not going to affect growth of Sirius XM. Despite the quick and fast forward growth of Pandora, Sirius XM has been closing out dozens of past quarterly reports with numerous subscribers than it had in the past three months. This is one positive point on the Sirius XM's side and hence, Pandora's popularity is not threatening Sirius XM. On the other hand, as Sirius XM sees some worthy emulation in Pandora, it has decided to roll out personalized radio for its subscribers this year. This is going to prove more as a preservation tool than the one for gaining popularity and Sirius XM is seeing it from a serious point of view.
The main reason of this perception is Pandora noticed around 55 million listeners at the end of July which was a significant rise of 48% as compared to the past year. Moreover, similar increase in the traffic is found on Pandora network as more listeners are tuning in to Pandora. Sirius XM is definitely not growing at such a fast rate and hence, Pandora has become important to Sirius XM. As a result, it has been taking certain steps in order to retain its popularity and by far, certain growth is noticed in the radio networks. Pandora is providing many facilities which are reliable and usable for the users and this way, it is educating the population which is ultimately useful for Sirius XM. Hence, in one way, it is doing a favor to Sirius XM and there are technical conflicts going on in both the radio networks.
Considering these facts, Pandora is no longer an enemy to Sirius XM and ultimately it is going to prove as a help provider and a road map to success for Sirius XM.>