US pay-radio operator SiriusXM added 311,000 net new subs during its Q3 and taking the overall total for the year to date to more than 1 million. James Meyer, SiriusXM’s CEO, told analysts on the broadcaster’s conference call that it expected to achieve about 1.4 million net new subscribers this year.
The broadcaster now has 27 million self-paying clients and a total of 32.2 million overall subscribers.
But Meyer stressed that good as this number is, the company’s aim is far greater. Because almost all new vehicles in the US (and Canada) are now fitted with satellite radio, as these cars, vans and trucks trickle down into the ‘pre-owned’ market he was now anticipating an overall installed base to be some 80 percent higher by around 2025, or approximately 185 million enabled vehicles.
One reluctant manufacturer was Ford, and it has recently announced that it will now integrate SiriusXM into the “vast majority” of its vehicles by 2020.
That 185 million target is helped by having around 30,000 total auto-dealers, and well up on the 24,000 signed up this time last year. These dealers offer free trial periods to new subs.
On September 22nd, the broadcaster wrapped up its investment in streaming service Pandora Media. “Eventually, there will be areas where it makes sense for SiriusXM and Pandora to work together, but we will take our time getting to know their business and thoughtfully considering these options over the coming months and years,” said Meyer.
Total revenue for Q3 was up 8 per cent to nearly $1.4 billion on the strength of subscriber additions, as well as growth in ARPU. ARPU in the quarter was a record high $13.41, almost 3 per cent above the $13.04 in the third quarter of 2016.