Sirius XM (SIRI)

Risks

• We have been, and may continue to be, adversely affected by supply chain issues as a result of the global semiconductor supply shortage.
• The ongoing COVID-19 pandemic has introduced significant uncertainty to our business.
• We face substantial competition and that competition is likely to increase over time.
• If our efforts to attract and retain subscribers and listeners, or convert listeners into subscribers, are not successful, our business will be adversely affected.
• We engage in extensive marketing efforts and the continued effectiveness of those efforts is an important part of our business.
• We rely on third parties for the operation of our business, and the failure of third parties to perform could adversely affect our business.
• We may not realize the benefits of acquisitions or other strategic investments and initiatives.
• A substantial number of our Sirius XM service subscribers periodically cancel their subscriptions and we cannot predict how successful we will be at retaining customers.
• Our ability to profitably attract and retain subscribers to our Sirius XM service as our marketing efforts reach more price-sensitive consumers is uncertain.
• Our business depends in part upon the auto industry.
• Failure of our satellites would significantly damage our business.
• Our Sirius XM service may experience harmful interference from wireless operations.
• Our Pandora ad-supported business has suffered a substantial and consistent loss of monthly active users, which may adversely affect our Pandora business.
• Our failure to convince advertisers of the benefits of our Pandora ad-supported service could harm our business.
• If we are unable to maintain revenue growth from our advertising products our results of operations will be adversely affected.
• Changes to mobile operating systems and browsers may hinder our ability to sell advertising and market our services.
• If we fail to accurately predict and play music, comedy or other content that our Pandora listeners enjoy, we may fail to retain existing and attract new listeners.
• Privacy and data security laws and regulations may hinder our ability to market our services, sell advertising and impose legal liabilities.
• Consumer protection laws and our failure to comply with them could damage our business.
• Failure to comply with FCC requirements could damage our business.
• If we fail to protect the security of personal information about our customers, we could be subject to costly government enforcement actions and private litigation and our reputation could suffer.
• Interruption or failure of our information technology and communications systems could impair the delivery of our service and harm our business.
• The market for music rights is changing and is subject to significant uncertainties.
• Our Pandora services depend upon maintaining complex licenses with copyright owners, and these licenses contain onerous terms.
• The rates we must pay for “mechanical rights” to use musical works on our Pandora service have increased substantially and these rates may adversely affect our business.
• Failure to protect our intellectual property or actions by third parties to enforce their intellectual property rights could substantially harm our business and operating results.
• Some of our services and technologies may use “open source” software, which may restrict how we use or distribute our services or require that we release the source code subject to those licenses.
• Rapid technological and industry changes and new entrants could adversely impact our services.
• We have a significant amount of indebtedness, and our debt contains certain covenants that restrict our operations.
• We are a “controlled company” within the meaning of the NASDAQ listing rules and, as a result, qualify for, and rely on, exemptions from certain corporate governance requirements.
• While we currently pay a quarterly cash dividend to holders of our common stock, we may change our dividend policy at any time.
• Our principal stockholder has significant influence, including over actions requiring stockholder approval, and its interests may differ from the interests of other holders of our common stock.
• If we are unable to attract and retain qualified personnel, our business could be harmed.
• Our facilities could be damaged by natural catastrophes or terrorist activities.
• The unfavorable outcome of pending or future litigation could have an adverse impact on our operations and financial condition.
• We may be exposed to liabilities that other entertainment service providers would not customarily be subject to.
• Our business and prospects depend on the strength of our brands.