With satellite radio becoming the latest consumer electronics appliance that folks can't live without, Sirius Satellite Radio
It is another step forward for Sirius. XM Satellite Radio
Then again, without these exclusive content deals, satellite radio would not be growing so quickly despite holding firm to its monthly rates (XM's 30% hike earlier this year hasn't slowed it down a bit).
The NFL and Stern are expected to serve Sirius well. In fact, the company is looking to go from 2.1 million subscribers today to 3 million by the end of the year on the strength of those two deals. With so much of the overhead fixed in the satellite radio market, even a hefty programming deal can be overcome if enough subscribers sign up to get the content. That's why Sirius is expecting to generate positive free cash flow as early as next year's December quarter.
If so, satellite radio will become an even more formidable enemy to terrestrial radio biggies like Cumulus Media
Tomorrow, I'll delve a bit deeper into the Sirius-NFL deal.
If you fancy satellite radio stocks, you are probably a forward-thinking investor. You may want to check out our Motley Fool Rule Breakers newsletter service. To find out if high-octane growth stock investing is for you, take advantage of the service's free 30-day trial. Join today and you'll receive our special 12-month review issue when it is released tomorrow afternoon.
Longtime Fool contributor Rick Munarriz is a Sirius subscriber but he does not own shares in any of the companies mentioned in this story. He is part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.