SiriusXM Moves Into Auto Service Departments

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auto service bay

SiriusXM said Thursday it is preparing to offer two-month trials of satellite radio to car owners who visit the service bays at auto dealers. The program would let dealers show their appreciation to their service customers, while giving the satellite radio company a new avenue to reach subscribers.

The company sees a “big opportunity” in reaching car owners who are getting an oil change or auto maintenance at the car dealer.  “There are a lot of transactions every day [in service lanes],” SiriusXM CEO Jim Meyer told analysts.  The program would help SiriusXM activate radios in used cars as well as newer cars.

SiriusXM radios is now offered in a record penetration rate of 69 percent of car models.

The radios are also now in over 54.5 million vehicles on the road., “I’m confident it’s on its way to 100 million [cars] in 2017,” Meyer said in a call with analysts.  That figure should climb to 150 million vehicles over the next 10 years said CFO David Frear, noting that with auto sales climbing, “the wind has been at our backs.”

The company is also in the process of rolling out IP-app services to car makers as a double offering of both Internet apps and satellite radio.   Ford is the first to offer this program, providing customers access to personalized SiriusXM over the Internet  (MYSXM) and On-Demand SiriusXM program over the Internet.

Meyer said, “This is just the beginning.  We are holding discussions with all OEMs about including our app on the platform, combining satellite and IP in the car.”

Source: CEoutlook

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  1. an act of desperation. they have burned most retailers that “could” sell the product by going direct and not supporting product that acutally sells

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