You Might Think Sirius XM's Radio Business Thrives on Advertising, But Nearly 80% of the Company's Revenue Actually Comes From This Cash Cow
The streaming industry is packed to the gills with different services. While Netflix and Hulu dominate television and movie streaming, platforms such as Spotify Technologies, Apple Music, and 's YouTube are arguably just as popular given the rise of podcasts.
When it comes to streaming content on the radio, one player basically owns the space: Sirius XM (NASDAQ: SIRI). While radio may not come to mind when you think about monster growth potential, there is a reason why Sirius XM has earned a position in Warren Buffett's esteemed portfolio.
Let's dig into Sirius XM's business and get an understanding of how the radio giant makes its money. More importantly, after assessing the business model, investors should take a hard look at the company's financial and operating profiles to determine whether following Buffett's lead makes sense.
Source Fool.com