- Admin
- #1
Just a general FYI to those of you ordering C6 Corvettes with XM:
XM Radio Set to Turn Profit
Subscriber base grows as rival does too.
by Joseph Szczesny (2005-06-27)
XM Goes Wearable With Delphi by Jim Burt (11/1/2004)
Will megadeals and new hardware drive satellite growth?
XM Satellite Radio will turn a profit next year, says the company's chairman.
Gary Parson, XM chairman, said during a visit to Detroit that the company's start-up plan, which included provisions for heavy losses, is unfolding as planned. Thus XM is on course to turn a profit next year and sign up as many as 20 million subscribers by the end of the decade and 40 million by 2015.
XM now has more than 4 million subscribers under contract and should have 5.5 million on board by the by the end of the year, Parsons added. "Every million subscribers adds about $100 million to our cash flow," added Parsons after a speech to Detroit 's Automotive Press Association.
Parsons added XM's strong cash flow also is making it easier to cover the startup costs that are inherent in acquiring new subscribers and launching the new service.
XM also now reviewing the possibility of offering service in Canada. Canadian regulators have approved XM's application to offer service north of the border. XM, however, haven't decided to accept the conditions, which include offering a heavy dose of Canadian-oriented programming and music, Parsons said. A decision is expected in about 90 days. XM's rival, Sirius, has indicated it plans to offer its service in Canada.
Parsons noted that satellite radio in general and XM in particular, has been accepted by consumers faster than any other entertainment technology introduced during the past 30 years, including the VCR and DVD player.
The popularity of satellite radio has made the cost of acquiring subscribers smaller than originally forecasted. In addition, the renewal rate is running at better than 90 percent, he added.
Parson added satellite radio's automotive partners report they have never seen a feature with such quick acceptance from consumers and probably half of XM's new subscriptions will be linked to new vehicle purchases.
General Motors Corp., which was one of the original investors in XM Satellite Radio, was one of the first automakers to adopt the technology. But now Honda, Toyota , Hyundai and Nissan also offer vehicles with XM receivers installed at the factory. Earlier this year, Hyundai announced plans to offer satellite radio as standard equipment on all of its vehicles, starting in 2006. XM's recent decision to increase the monthly subscription fee to $14.95 from the original $9.95 hasn't slowed down the effort to recruit new subscribers, he said. Fully 23 percent of the subscribers are ages 55 and above, he said, adding that users come from all age groups. "People want the programming," he said.
The rising popularity of satellite radio is having an impact on conventional radio. The oldies format is being eliminated in many markets because consumers have opted for XM's specialty music channels, according to a recent NBC News report.
XM is continuing to experiment and refine its technology and programming, Parsons said. The service started with 100 channels in 2001 but now has expanded to more than 150 channels, including nine that carry Major League Baseball.
The company also has added traffic and weather updates in 22 of the nation's top markets. Two vehicles - the 2005 Acura RL and the 2005 Cadillac CTS - have been equipped with the XM NavTraffic service with real-time traffic and weather updates. If a route is blocked, it will show as red on the navigation system in the car, alerting the driver that the way ahead is blocked.
Parsons said the service is certain to gain in popularity as it appears on more models.
XM Radio Set to Turn Profit
Subscriber base grows as rival does too.
by Joseph Szczesny (2005-06-27)
XM Goes Wearable With Delphi by Jim Burt (11/1/2004)
Will megadeals and new hardware drive satellite growth?
XM Satellite Radio will turn a profit next year, says the company's chairman.
Gary Parson, XM chairman, said during a visit to Detroit that the company's start-up plan, which included provisions for heavy losses, is unfolding as planned. Thus XM is on course to turn a profit next year and sign up as many as 20 million subscribers by the end of the decade and 40 million by 2015.
XM now has more than 4 million subscribers under contract and should have 5.5 million on board by the by the end of the year, Parsons added. "Every million subscribers adds about $100 million to our cash flow," added Parsons after a speech to Detroit 's Automotive Press Association.
Parsons added XM's strong cash flow also is making it easier to cover the startup costs that are inherent in acquiring new subscribers and launching the new service.
XM also now reviewing the possibility of offering service in Canada. Canadian regulators have approved XM's application to offer service north of the border. XM, however, haven't decided to accept the conditions, which include offering a heavy dose of Canadian-oriented programming and music, Parsons said. A decision is expected in about 90 days. XM's rival, Sirius, has indicated it plans to offer its service in Canada.
Parsons noted that satellite radio in general and XM in particular, has been accepted by consumers faster than any other entertainment technology introduced during the past 30 years, including the VCR and DVD player.
The popularity of satellite radio has made the cost of acquiring subscribers smaller than originally forecasted. In addition, the renewal rate is running at better than 90 percent, he added.
Parson added satellite radio's automotive partners report they have never seen a feature with such quick acceptance from consumers and probably half of XM's new subscriptions will be linked to new vehicle purchases.
General Motors Corp., which was one of the original investors in XM Satellite Radio, was one of the first automakers to adopt the technology. But now Honda, Toyota , Hyundai and Nissan also offer vehicles with XM receivers installed at the factory. Earlier this year, Hyundai announced plans to offer satellite radio as standard equipment on all of its vehicles, starting in 2006. XM's recent decision to increase the monthly subscription fee to $14.95 from the original $9.95 hasn't slowed down the effort to recruit new subscribers, he said. Fully 23 percent of the subscribers are ages 55 and above, he said, adding that users come from all age groups. "People want the programming," he said.
The rising popularity of satellite radio is having an impact on conventional radio. The oldies format is being eliminated in many markets because consumers have opted for XM's specialty music channels, according to a recent NBC News report.
XM is continuing to experiment and refine its technology and programming, Parsons said. The service started with 100 channels in 2001 but now has expanded to more than 150 channels, including nine that carry Major League Baseball.
The company also has added traffic and weather updates in 22 of the nation's top markets. Two vehicles - the 2005 Acura RL and the 2005 Cadillac CTS - have been equipped with the XM NavTraffic service with real-time traffic and weather updates. If a route is blocked, it will show as red on the navigation system in the car, alerting the driver that the way ahead is blocked.
Parsons said the service is certain to gain in popularity as it appears on more models.
