Whether or not Sirius and XM are successful in merging, automakers are still betting on satellite radio as installations will rapidly increase over the next few years. It's a point wonderfully illustrated in a recent AutoWeek article.
By 2011, analysts say that 75 percent of vehicles sold in the U.S. and Canada will include satellite radios. And while the conversion rate will likely reduce as a result of the increased exposure, it will still be the main driver of subscriptions for both services.
Even today, it's estimated that one out of four new vehicles sold will have an activated satellite radio.
Patrik Borenius, Mercedes' manager of advanced product planning, says satellite radio has gone beyond being "a dealer-installed thing, where early adopters specifically asked for it."
"Two years ago, we started to make it standard and to package it because we saw such positive responses from both the dealer body and the customers," Borenius told AutoWeek.
As many as 80 percent of Mercedes owners choose to renew, Borenius says.
But that's not to say there isn't strong competition already growing, and more on the horizon. HD Radio is growing at a rapid pace, and more OEMs will undoubtedly choose to adopt the technology (like BMW and Mini already have). Future technologies like WiMAX and mobile audio integration are right around the corner.
And all these alternatives will have a direct impact of satellite radio's conversion rate. There's no doubt about that.
[AutoWeek]
Thanks Donald!
But i thought that sat radio has no competition!!!!