While new connections and subscribers to pay-radio operator SiriusXM continue to rise, and even impress the market, one area that was expected to show increased progress was that of connected vehicles.
Indeed, SiriusXM exceed all of its expected targets for 2016: Revenues were up 10 per cent to $5 billion. Net subs growth totalled 1.75 million, and net income for the year rose 46 per cent to $746 million.
CEO James Meyer, during a conference call with analysts, admitted that while the broadcaster remained extremely optimistic about the importance of connected vehicles they had had to invest more than was anticipated and were executing slower than the original business plan. He added: “That said, I can tell you we were having all kinds of conversations with the OEMs about wanting to have a position in the connected vehicle space four years ago. We can’t predict what auto sales will be in 2019, but we do know what percent of the vehicles will be with our connected vehicle services, and we really like our position.”
Meyer told analysts that the connected vehicle market was going to have a “profound effect on automobiles, on automobile suppliers, and certainly the users of those automobiles for easily the next 20 years.” He added that SiriusXM saw the market for connectivity in vehicles as being “gigantic” and “a big opportunity”.