Will Sirius XM Offer a Free Service?

There doesn't seem to be anything wrong with Sirius XM Holdings (NASDAQ: SIRI) these days, but it doesn't mean that it's above tweaking its model. The satellite radio provider offered up some interesting comments during last week's blowout quarter in discussing its pending purchase of a minority stake in Pandora (NYSE: P).

"We really want to get under the hood on how the free business works," Sirius XM CEO Jim Meyer said during last week's earnings call.

Why would Sirius XM care about a free ad-supported business model? It's generating 28 times more subscription revenue than it is ad dollars. Sirius XM recently topped 32 million subscribers, with 26.7 million of them perfectly happy as self-pay accounts. There's more to Meyer's statement, of course, but if Sirius XM wants a crash course in entertaining freeloaders, this would be a significant and pretty brilliant move.

Source: Fool.com