SiriusXM’s Business Has Structural Long-Term Challenges, but It Has a Clear Path for Cash Generation

In our view, SiriusXM is fighting an uphill battle, as the technology that once gave it a unique offering and an advantage over competitors is no longer necessary for a subscription service in vehicles. We now see SiriusXM’s primary competition as streaming music providers that rely on internet connectivity rather than terrestrial radio, and we believe those services offer a better value proposition for most consumers.