SiriusXM says future is “connected cars”
September 11, 2017
By Chris Forrester
September 8th saw David Frear, CFO at pay-radio operator Sirius/XM. Speaking at a Bank of America/Merrill Lynch media conference, talk about the prospects for his business, and where growth would likely occur over the next 3-5 years.
“I think it’s becoming more and more [about] the connected car. We think about what’s going to drive free cash flow and we’re going to get multiple benefits out of connected car. Not only do we have connected vehicle services and we’ve got that part of the market but then we have the ability to expand the product offering with the interactivity, the return path channel that’s available from connected cars.”
Frear added: “It is probably important the [connected car] allows us to engage with the subscriber and there are all sorts of things involved in that that go from improvements in conversion rates, improvements in churn rates, as well as reductions in unit costs of actually communicating with the subscriber. We have multiple ways that connected car comes background to benefit us.”