BMW is extending its relationship with Sirius XM Radio
The automaker will now keep pushing satellite radio in its cars through at least September of 2011.
Satellite radio is a no-brainer for the struggling automaker industry. Pushing other entertainment appliances like CD changers, HD radios, and back-seat video monitors are one-time sales, but satellite radios create monthly revenue-sharing streams for the car companies.
Few auto manufacturers have proprietary subscription services in place like General Motors'
This may make it surprising why recent car ads -- like those of Ford
It's a delicate balance for the automakers. At what point does adding an iPod jack help sales to the point of being detrimental to satellite radio? Ford's exclusivity with Microsoft's
Another point in discussing this morning's deal extension is that BMW really doesn't have much of a choice. Since Sirius XM watches over both Sirius and XM since this summer's merger, the company now should have the upper hand in negotiations. Where else will the automakers turn? It's not as if Apple
So Sirius XM finds itself in the enviable position of channeling Marlon Brando in The Godfather, giving automakers an offer they can't refuse.
Some other tales of low-priced stocks on the move:
Stock news, financial commentary, and your daily dose of Foolishness: Get plugged in to The Motley Fool on Twitter!
Longtime Fool contributor Rick Munarriz is such a fan of satellite radio that he subscribes to both Sirius and XM. He does not own shares in any of the stocks in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.