Satellite radio has been available to the public, ever since XM was launched in 2001. After Sirius was launched in 2002, the two companies merged on July 29, 2009. When satellite radio first hit the market, it was only available on the internet and on portable hand-held devices. At the time, satellite radio could be purchased from either Sirius or XM. Once satellite radio took off, automakers decided to include it as a new vehicle feature on most of its brand new models. These models would be available as satellite radio ready, needing the antenna to be installed and the subscription activated for use. Some new vehicles, included a three-month subscription to satellite radio as part of the deal.
Final year statistics for 2009 will not be available until the month of February for Sirius XM. The CEO of the company, Mel Karmazin, claims that satellite radio sales have increased in the auto market as sales increased, following the recession. Sirius XM claims net adds of 247,182 in the fourth quarter of 2009, which will raise the total number of net adds to 15,703,932 subs. The 247,182 is the largest number, since the third quarter of 2008 for satellite radio.
The lower number of commercials is one reason for the growth of satellite radio in vehicles because listeners subscribe to their services. There are some commercials from the way the programming is designed. For instance, Sirius XM carries baseball, football, hockey, and basketball games at the collegiate and professional levels. When the games switch innings or go to halftime, airtime needs to be filled. The airtime is typically filled either with a halftime show or commercials that help increase the revenue of Sirius XM.
The merging of Sirius and XM has been a positive combination as far as listeners are concerned. For instance, most Philadelphia Acura buyers often opt for satellite radio in their new cars. Although it was once reserved for the premium segment, most new cars these days are offering the service, and many are struggling to to say ‘no’ to this positively addicting radio experience. Whether you’re looking at high-end cars or economy cars at Honda Carson, chances are satellite radio may be available on your next car purchase.
***
Stay tuned to more automotive news here soon.
You must log in to post a comment.