Even while SiriusXM is still rolling out its 2.0 platform in new cars, SiriusXM announced it is now working on its next satellite radio platform, which will merge Internet and satellite radio.
In addition, the company announced Thursday morning, a 50 cent increase in its basic rate plan beginning next month.
Regarding the new platform, CEO Jim Meyer told analysts that it will merge satellite and IP service. As more automakers move to include embedded 4G LTE modems in new cars, the new service will take advantage of that feature. It will include the one-way nationwide satellite network with a two-way public LTE network that will provide “an interactive request channel through an embedded modem.”
SiriusXM is currently talking to automakers about the new platform, but additional details were not released.
The company also announced that Honda will make SiriusXM standard equipment on its most popular trim levels. SiriusXM said Wednesday, it has extended its agreement with Honda to year 2020 and Honda will significantly increase penetration of satellite radio in its model lineup over the period.
Also for the first time, SiriusXM revealed the rate at which it converts used car owners on a free trial to full paid subscribers. That rate is over 30 percent. (The conversion rate is closer to 50 percent in new car buyers). The growth in used car subscribers over last year is about 50 percent.
A new satellite, Sirius 6, will launch tomorrow as a replacement satellite.
SiriusXM now has 25.6 million subscribers, with net new subscribers for the recent quarter of 513,000, up from 446,00 in the quarter last year.
For its third quarter, SiriusXM said revenue grew 11 percent to $962 million with net income of $63 million, down from $75 million for the quarter a year ago.
Source: SiriusXM
