Each year the Auto Show comes to New York and each year, new model cars and concept vehicles are shared with the public. And on the showroom floors it seems every new car being sold offers a subscription to SiriusXM even as some start to remove cd and dvd players from the dash. The rise of digital content and satellite radio creates a complete entertainment solution.
For Sirius, consumers of new cars are enjoying their 3 month free trial of the service and more and more seem to be deciding to keep paying a monthly subscription. "Sirius added 173,480 net paying subscribers in the quarter
ended March 31, raising the total to 25.8 million." With subscription fees and advertising, revenues for the quarter rose as well, despite competition from digital media and traditional radio.
So what does the future hold for Sirius? Are they an acquisition target or is there a limit to their growth goals? The good news, because of advertising as well, Sirius had a "better-than-expected 11 percent
rise in quarterly revenue". Given the quarter subscription increase was only 0.68%, the challenge continues to be how to create more meaningful growth for the business. For now Sirius has a good story to tell, its what happens next that should keep us tuned in.