Sirius XM looks to ancillary services, smartphones as growth drivers - Orbitcast

Sirius XM looks to ancillary services, smartphones as growth drivers

Mel Karmazin
Sirius XM Radio Inc. CEO Mel Karmazin said today at the Bank of America Media Conference that the satellite radio provider is looking to ancillary satellite services as well as smartphone apps for future growth opportunities.
Sirius XM Growth Opportunities

This is interesting for some specific reasons:
  1. First, the fact that Sirius XM sees smartphone apps such as those on the iPhone and Android devices as a way to augment retail distribution tells me that we're seeing a clear shift in their company's retail strategy.

    Rather than spend the money on hardware development, it looks like the company is more interested in monetizing on existing platforms. This is a smart strategy.

  2. Next is the ancillary services. These look specific to the OEM auto channel. And for the near future, that would mean the luxury auto channel in particular. Most automakers are looking to increase their in-vehicle technologies (and driver experience), especially seeing the huge success of Ford SYNC.

    So with Sirius XM already having an excellent penetration rate (~60% of U.S. auto sales for this year), it only makes sense to really push ancillary services to OEM subscribers. It's an excellent up-sell opportunity, and provides more value to the automakers' own offering to consumers.
As a followup to the second item, Karmazin said during the Q&A that Sirius XM is "having discussions" with automakers about the basic business model for 2014 and beyond. He added that future satellite radio technologies would offer an added value for automakers to include in their productions.

So it looks like there's some interesting capabilities coming.


Sounds to me like SIRI XM 2.0 is a DVR/TIVO.

I wonder if they will be able to modify existing car radios.

It looks like EVERYBODY was WROOONG when they commented on the previous moth to date update titled: "What's this? Mel Karmazin to present at Bank of America Media Conference." LOL. you guys need to relax about all of this Howard Stern commotion. LOL

Mel your on Fire so do the damn thing!!!

Finally some 21st century thinking. music to my ears! Now execute...execute...execute.

Make it so my ford sync can save songs, talk shows, and be able to flip through them like a DVR, that would be NICE. But at what cost? Thats the question. Also some ask mel what sirius 2.0 means to the current lifetime subscription holders. Are we going to have to pay more for the NEW Sirius ?

I guess this means the end of the rest of my retail team......I need to find another ass to kiss so I still have a job.

Habib, looks like we are screwed.....your positive spin didn't work, WTF?

Pricing actions have increased ARPU.
Best of. Multi-sub pricing, streaming fee, royalty fee.

Great, his big announcement was that they're making more money per sub by increasing costs by charging for best of, additional cost of additional radios, no more free streaming and passing royalties onto us.

Basically, the strategy is to gouge existing customers. I hate this shit company. Hope Howard & O&A are let go so I can cancel my remaining sub.

They better do something... I'm enjoying my 1st day with Pandora on my Blackberry and loving it.

Excellent points, pfreak.

Also, before declaring what a visionary this man is for essentially saying, "we're doing better by charging more," people may want to consider what type of competitive environment Sirius XM is entering by pinning future growth on smartphones. These phones tend to be used by the youngest and most technically advanced consumers, and they know how to get a plethora of free content on them.