Sirius Satellite Radio Chief Financial Officer David Frear gave a snapshot of Sirius' 2007 OEM penetration at today's UBS Global Media & Communications Conference.
DaimlerChrysler will have a 40% overall penetration rate in 2007, up from approximately 30% in 2006. Ford, while they have a non-disclosed penetration rate, will factory-install Sirius in 21 models. Mercedes is targeting over 50% in 2007 and BMW is targeting a higher penetration rate (though I didn't catch a specific number).
Audi/VW is the most aggressive as they're targeting an 80% penetration rate in 2007, and Kia will offer Sirius standard in 2008.
When asked about used car sales, David Frear said that there is an opportunity, but that there are very strict rules regarding using vehicle registration information for marketing purposes. So how do you market to these people? It's a good strategic question that I'm sure both companies are looking at.
Problem for Sirius is that 40% of DCX 2007 production is about the same as 30% of DCX 2006 production, so there will be no increase for Sirius factory installs in 2007.
Ford 21 models....they keep crying wolf...more like 21 cars. So far, Ford has been a bust. Each year the talk, but don't produce. 80% for Audi is ambitious and good for Sirius. Kia sells a lot of cars as well.
I do not trust Mr. Frear one bit... isn't this the same CFO who said they had absolutely no FM modulation issues at an investor conference? Is this the guy who's team affirmed raised guidance 100K on a conference call and dropped it 400K within 30 days? They should take him off of the road and sent him out to pasture. He has no credibility with me!
lets spin this the other way---40% is higher then 30 and when auto sales DO, and they will, recover---more factory installed will be shipped--Its really a time issue here
Hey David and Mel. Love you baby but Pockpie says to your says blah, blah, blah, blah, blah, blah.
Call me at home if you need me to make up excuses for the next four quarters.
1. Holiday sales were weak.
2. Auto sales are down.
3. CFBE in 2007 for sure.
4. Nascar
5. VIDEO IN 2007 FOR SURE ! Maybe ....
Like fricking monkeys chattering in the zoo.
Show us the money baby. enuf talking.
One more thing.
The best penetration Sirius has done is draining investors wallets so for in 2006.
Why are you all so pro XM and anti Sirius? Don't you see they are heavily tied to one and other?