Sirius XM Holdings Inc. (SIRI) provides satellite radio services on a subscription fee basis in the United States. It broadcasts music, sports, entertainment, comedy, talk, news, traffic, and weather channels. On the other hand, Spotify Technology S.A. (SPOT) provides audio streaming services worldwide. It operates through Premium and Ad-Supported segments. The company offers sales, marketing, contract research and development, and customer support services.
Communication services have been in high demand due to the growing inclination toward social media and streaming. This trend is expected to continue with accelerated digitization and hybrid lifestyles. Moreover, with the continued expansion of the 5G network and governments’ infrastructure investments, the communication services sector is expected to witness exponential growth. According to a report by Research Nester, the global consumer communication services market is expected to grow at a CAGR of 4% by 2027. Therefore, both SIRI and SPOT should benefit.
