Pay-radio operator SiriusXM has had a good Q2 adding almost a half-million net new subscribers during the year and seeing churn reach its lowest-ever rate.
“Self-pay subscribers exceeded 28 million for the first time ever, and our total paid subscriber base reached a record 33.5 million. There is, without a doubt, a tailwind from the growing economy that benefits us,” said Jim Meyer CEO, speaking to analysts on July 25th.
Meyer added that the quarter-year had seen OEM install relationships with Nissan and Kia renewed for another five years. He said that the revenue prospects, and lowering debts meant the business was “on the prowl” for new acquisitions where they made sense.
He explained that second-hand car installations of SiriusXM receivers were moving forward from the current 38 per cent penetration rate to a target of 75 per cent and over, in the next 10 years. “We are now offering trials at approximately 33,000 dealers, up by about 5,000 from this time last year.”
SiriusXM’s next generation ‘360L’ unit [which offers personalised on-demand content as well as 200+ live channels] is now being fitted to Dodge ‘Ram’ vehicles. Meyer explained that SiriusXM’s availability on connected devices such as Amazon’s Alexa, and was being added to ‘Smart’ TVs.
Meyer said that the broadcaster was anticipating a free cashflow of some $1.5 billion this year, and that video content was increasingly being examined.