Sirius XM Radio recently passed 50 million factory vehicle installations of the company’s satellite radios. Since SiriusXM launched ten years ago, the satellite service’s penetration rate as a percentage of new U.S. auto sales has climbed every year. SiriusXM this year will be factory installed in close to 70% of all new vehicles sold in the U.S. SiriusXM is available in vehicles from every major car company, as well as most specialty auto makers.
“We are proud that SiriusXM has reached this major milestone since it directly reflects the strong commitment by all automakers to satellite radio and the high level of enjoyment by consumers for our unrivalled audio entertainment service,” said Jim Meyer, President, Operations and Sales, SiriusXM. “The growing installation rate means that SiriusXM is not only widely available to most new car buyers, but is also available to more and more used car buyers. We expect to double factory installed vehicles to over 100 million by 2018 and plan to offer our unique content and valuable entertainment to even more customers in the future.”
RBR-TVBR observation: Not bad, and the stock is steadily increasing now as well. Remember, though, that these radios encompass both XM and Sirius OEM installations before the merger and certainly do not mean 50 million vehicles are activated with paying customers.
On a recent road trip, I had several days of uninterrupted driving to listen to the satellite tuner in the rental car. Not bad. Lots of formatics, some of which would clearly never make it to the public airwaves. But here’s the biggest thing that kept coming to mind. This is not local broadcasting. This is not local marketing/advertising. When a potential investor, advertiser, listener says to me “but how is radio going to compete against satellite?” it’s an easy answer. Radio, and I mean Radio in the radio bandwidth, transmitted locally to local audiences, is still the best bang for the buck when you want to serve your community and/or you want to reach listeners with advertising.
It’s an easy response to that potential advertiser to suggest that they go to the satellite provider and ask to buy advertising to promote their business or next blowout sale. Won’t happen. Just tell the local high school to go to the satellite broadcaster and arrange to have their sports or other academic events publicized. Won’t happen. That blank stare you get when you ask them how they are going to use satellite to reach their neighbors in time of a local emergency is all the answer you or they need.
So you think drivers will reject the clear, broad content with no advertising just so they can get bombarded with commercials?
I recently bought a GMC. The installation of SM/Sirius (Serious..ly) was included. After nearly a year of trying to get regular radio…and the “now not-free” Sirius…I learn from my dealer that I have to get Sirius to get off my radio with the continaual bombardment of why I need to pay them their monthly fee. Sure, maybe 70mil have had installations…but how many of us suckers are still paying for it…and if not, still getting the bombardment above? Richard
It’s $15/month. Then no commercials.
And by the way….it is almost as bad as trying to read a news item on RBR/TVBR….we readers are given a sucker lead-in…and then “encouraged” to sign-up for the service….meanwhile…back on the ranch….the sponsors keep us informed with those beutiful “infomercials” paid for by all the advertisers who think we need them.
One further item…And this is not SPAM…but will likely be thrown out as unpaid advertising. I have some permits for both radio and tv and am looking for someone to share in the potential (?) of either/both. Frankly,except for the giants, there appears no future for us LPTV/small radio persons. Tell me I am wrong…and I will tell you about the permits…they are no longer avaiable…and might….might…have some value? [email protected]
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