# The Satellite Radio Play That Has Buffett Betting Big

Sirius XM (SIRI) is an interesting case study in how legacy media adapts — or struggles to adapt — in the streaming era.

**The Business Model:**
76% of revenue ($6.6B out of $8.7B last year) comes from subscriptions ($10-$25/month). Ad revenue (Sirius + Pandora) makes up just 20%. It's a steady cash cow, not a growth story.

**The Challenge:**
Subscriber count peaked at 34.9M seven years ago. Now sitting at 32.8M as of Q3 2025, with revenue declining for three straight years. Spotify and smartphone streaming are the real threats — they've slowly but surely eaten into satellite radio's market share.

**The Berkshire Angle:**
Warren Buffett's been quietly accumulating since summer 2024 and now owns 37% of the company. Why? SIRI generates $1B+ in annual free cash flow, trades under 7x forward earnings, and yields 5.3%. For a value investor, that's attractive despite long-term viability concerns.

**Bottom Line:**
Not a high-growth play, but the recurring revenue model and Buffett's massive stake suggest there's floor support here. The real question: can they slow the subscriber bleed or is this a slow-motion decline?