Many of us have had fun with spending the piles of cash Apple sits on – click here for my list. But here is another asset I did not think about – Sirius satellite radio. What made me think of them is their new mobile version – which allows the listener to hear content that can be listened to on demand. Hmmm…sounds a bit like iTunes and downloading content…on demand. Now the Sirius market cap is about $8.4b, so not “cheap” but I am sure that share holders in Sirius would love nothing more than being gobbled up by a company such as Apple. So why would this make sense for Apple?
- Access to new content – Howard Stern, NFL play by play, MLB play by play to name a few. The ability of Apple to add this content to their existing offerings would enhance iTunes since the content is streaming daily, making iTunes much more of a daily destination.
- Push Apple into new areas – such as the car. This might seem trivial, but the car, much like the home entertainment center is a place that companies and content providers want to get. Think about it, when you are in the car you are a capture audience. Of course your first priority should be driving!
- Leverage another channel to push iTunes content. Picture this, you are listening to the 80s on 8 on your Sirius app and boom you hear a song you really like…tied in with iTunes would allow you to instantly download the song. Great opportunity for iTunes and impulse sales.
I have pitched the idea that Apple should buy Netflix….put Sirius on the list right next to the video content provider!