Pandora has had money problems for a while.  But their savior might have some of their own.  

Online music streaming site Pandora just announced a much-needed cash infusion from Sirius XM Radio.

For $480 million, Sirius has a 19% stake and three board seats with Pandora.  

But how comfortable is Sirius’ future?  

This chart is from ycharts.com.  It illustrates the lack of net income for Sirius since 2013.  

In 2016, Sirius brought in $5 Billion revenue- but only kept $746 million.  That’s still profitable, but where is their money going?

Their biggest marketing push is having XM radio receivers automatically installed in most new cars.  In 2015, they reached 78% of new car buys.  Each buyer is given a trial period with Sirius.  

$5 Billion revenue says that most car buyers renew, but could Sirius’ marketing strategy be a major expense?

Satellite radio has long been compared to cable TV.  That’s not a good thing.  Their industry is experiencing a massive drought due to cord-cutters and free content online.  

Perhaps Sirius and Pandora can fight that together.