By Brandon Matthews

Everyone it seems has written an opinion in regards to Sirius XM’s (SIRI), soon to be released iPhone application. As a result, I have received dozens of e-mails asking me for my own opinion on the subject. In the past, I had been skeptical that the new Satellite Radio application for Apple’s (AAPL) iPhone would be anything more than a value-adding proposition to Sirius XM’s existing subscriber base.

I have also gone on record as stating that no Internet Radio based service such as Pandora would ever replace Satellite Radio. When critics point to free vs. paid models I am quick to point out the content differences by asking them what channel on Pandora gets the NFL, Mad Dog Russo, Bubba, Opie & Anthony, CNBC, Oprah, Martha Stewart and of course the end all be all of radio; Howard Stern? This silences those critics immediately.

Critics always leave out the exclusive content of Sirius XM and seem to forget that even the music channels themselves offer exclusive content. “E Street” Radio, The Grateful Dead Channel, Jimmy Buffets Margaritaville plus special artist channels each month. This total  content package is what undoubtedly has drawn Apple into accepting a Satellite Radio partnership of sorts.

What can this application do for Sirius XM, however? It all comes back to Howard Stern! I know the company well enough to know that if they were forced to give up every channel but one, that the one would be Howard 100. Howard Stern WILL sell iPhones. Howard Stern WILL drive subscribers to Sirius XM via the iPhone application.

As the self-proclaimed “King Of All Media,” the “smartphone” is a new media vehicle that Howard will need to overcome to retain his title. When Howard came to Sirius, the subscriber ranks swelled. When Sirius XM offered the “best of Sirius” package to XM subscribers, XM subscribers signed up quickly.

As a radio company, it stands to reason that Sirius XM will not seek to reinvent the wheel in this case. In my opinion, Sirius XM will focus its marketing attempts on the time tested and success proven marketing power, of Howard Stern.

Position: Long SIRI

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