Is Clear Channel More Caliente Than Sirius XM?

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Sirius XM Radio (NAS: SIRI) is making Latin music a major part of its upcoming Sirius XM 2.0 launch. Clear Chanel (OTC: CCMO) is trying to beat it to the rum punch.

The terrestrial radio giant is teaming up with Spanish-language radio leader Univision to add to the 800 streaming broadcast stations that are currently available on Clear Channel's popular iHeartRadio app for smartphones.

Univision Radio operates 70 Spanish-language stations, reaching nearly 70% of the country's Hispanic population.

Sirius XM investors may not seem overly concerned. Consumers will naturally prefer its commercial-free channels over iHeartRadio's terrestrial streams. There's also the matter of convenience. Sirius XM offers seamless access. Streaming iHeartRadio or the more popular Pandora (NYS: P) though a car radio requires a smartphone and a newer car with input jacks of Bluetooth connectivity.

However, it's still something that Sirius XM will need to keep in mind when it begins to market Sirius XM 2.0 next quarter. Pandora's deep play lists and iHeartRadio's well-known Hispanic DJs won't be pushovers.

Automakers will also continue to make it easier to stream. Toyota's (NYS: TM) Entune and Ford's (NYS: F) SYNC AppLink offer easy smartphone streaming apps through car speakers. There's a delicate balance, though, since car dealers do make more money on vehicles they sell when drivers convert into self-paying Sirius or XM subscribers.

Either way, Sirius XM's plan for differentiation with Sirius XM 2.0 seemed to be playing up its ability to serve up more music for Latino drivers. It may have to come back with something else to make its marketing message stick.

If you want to see how Sirius XM stands up to the stream teams addSirius XM Radioto My Watchlist.

At the time this article was published The Motley Fool owns shares of Ford Motor. Motley Fool newsletter services have recommended buying shares of Ford Motor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for Ford. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.

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