Amazon.com, Inc. (NASDAQ:AMZN) and Apple Inc. (NASDAQ:AAPL) do not pose a big threat to Sirius XM Holdings Inc. (NASDAQ:SIRI), Miriam Gottfried told fellow Wall Street Journal columnist Simon Constable in a recent discussion.
The conversation comes after Amazon.com, Inc. (NASDAQ:AMZN) has been reported to be adding music streaming to its Amazon Prime service. Citing five unidentified sources who are in the music industry, BuzzFeed reported that the music streaming offering, said to limit offerings to albums at least six months old, will likely be debuted by the e-commerce and web services giant sometime this month or in July.
CNN points to the music streaming service as a way for Amazon.com, Inc. (NASDAQ:AMZN) to lure more customers to sign up for Amazon Prime where they already enjoy features such as two-day shipping on multiple orders, free streaming of select movies and TV shows and the ability to borrow Kindle books.
Meanwhile, Apple Inc. (NASDAQ:AAPL) just recently announced its multi-billion-dollar acquisition of Beats Electronics, a company that offers Beats Music, a subscription music streaming service that competes with the likes of Spotify. Other companies such as Pandora Media, Inc. also have services that are similar.
In light of these services and the entry of Amazon.com, Inc. (NASDAQ:AMZN) and Apple Inc. (NASDAQ:AAPL) into the industry, should Sirius XM Holdings Inc. (NASDAQ:SIRI) be on the lookout?
Gottfried told Constable that the entry of these tech giants into the music streaming space should not be a big problem for Sirius XM Holdings Inc. (NASDAQ:SIRI) as the company’s offering is different from those of existing and soon-to-operate rivals. Gottfried cites content like talk shows as a prime example of how the company’s offering is different and why the company has over 21 million subscribers.
Furthermore, she said that the delivery of the content is also different making Sirius XM a better choice for some consumers. To use the Amazon.com, Inc. (NASDAQ:AMZN) service or the Apple Inc. (NASDAQ:AAPL) music streaming service, people would have to pay for data in addition to the subscription fee.
The complete video is available below: