SiriusXM (SIRI) is betting big on the sky. The company's newly operational SXM-10 satellite, launched aboard a SpaceX Falcon 9, is now fully integrated into its broadcasting network, expanding its reach to a staggering 175 million vehicles. This marks the second satellite deployment for SiriusXM this year, signaling a continued commitment to its satellite infrastructure with more launches planned through 2027.
SXM-10: Enhancing Coverage, But Will It Drive Subscriptions?
The activation of SXM-10 is undoubtedly a technological achievement. Featuring a large S-band reflector antenna, the satellite enhances SiriusXM's broadcasting capabilities nationwide. However, the core question remains: will this expanded reach translate into significant subscriber growth and reversed revenue declines?
Analysts are cautiously optimistic. While SXM-10 materially boosts SiriusXM's technical capabilities, it doesn't immediately solve the company's biggest short-term challenge: persistent subscriber attrition. Competition from on-demand streaming services like Spotify and Apple Music continues to intensify, putting pressure on SiriusXM's traditional subscription model.
SiriusXM Play: A New Strategy to Attract Budget-Conscious Listeners
In response to these challenges, SiriusXM launched the ad-supported SiriusXM Play plan in July 2025. This low-cost option aims to attract budget-conscious listeners and expand SiriusXM's reach to potentially 100 million additional vehicles. SXM-10's expanded coverage could play a crucial role in boosting the adoption of SiriusXM Play.
The success of SiriusXM hinges on its ability to adapt to evolving consumer preferences and leverage its unique position in the connected car market. While the satellite investment demonstrates a long-term commitment to infrastructure, the company must also innovate its content offerings and pricing strategies to remain competitive in the rapidly changing audio landscape.
Is SiriusXM Undervalued?
Despite the challenges, some analysts believe SiriusXM is currently undervalued. ValueMan suggests the stock may be trading below its estimated fair value, presenting a potential upside for investors. The company's debt is considered a cost of operation, which by the way is, on average per year, a good ratio to their operating income.