Connect with us

Hi, what are you looking for?

New Products

XM Sirius Merger Boosts Automotive Radio Adoption

STRATEGY ANALYTICS: Cost Reductions Ultimately Benefit Car Buyer

The much rumored, recently announced merger between XM and Sirius comes down to just cost reduction, according to Strategy Analytics, in the recent Insight, “XM Sirius Merger: Competition Mounts for HD Radio.” The 50-50 merger gives existing shareholders in both XM and Sirius equal stake in the as yet un-named combined company, with 14 Million subscribers.

There are clear synergies between the two companies, both in terms of existing content portfolios and new services and technology planned for the future. Both companies stand to benefit from the other’s exclusive content offerings and partnership agreements, but there are significant opportunities to rationalize content, operations and reduce costs. Cost reductions can be passed onto consumers in terms of lower pricing and less advertising, as well as value added service development, such as dynamic weather and parking services, hands-free voice operation inside the vehicle, and portable device and wireless applications.

“XM and Sirius have accumulated a combined debt of $1.6 Billion. Both companies drastically need to cut operation costs, and the proposed merger is certainly one of the fastest ways to do so,” says Automotive Analyst, Clare Hughes. “According to our consumer research, US car buyers listen to radio nearly 60 percent of their audio entertainment time. There are around 160 million consumer vehicles on the road in the US, but only 14 Million satellite radio subscribers in total.”

Joanne Blight, Director, Automotive Practice, added, “While satellite radio growth has been very strong and automotive consumers are brand aware, most are not subscribing. Often for fear of making the ‘wrong’ satellite choice, it is too expensive or they are happy with their current FM radio. With improved content choices, realigned advertising levels, and targeted pricing, radio and digital audio in the car is a deep, rich opportunity stream.”

About Strategy Analytics
Strategy Analytics, Inc. – a global research and consulting firm – provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. For more information, see http://www.strategyanalytics.com

Advertisement. Scroll to continue reading.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

Latest Products

AVID HiFi EVO Two Loudspeakers Black Lifestyle

Floorstanding Speakers

AVID HIFI celebrates 30 years with the EVO TWO, a $40K 3.5-way loudspeaker built in the UK to rival Focal, Wilson, and Sonus faber...

LG StanbyME 2 Portable TVs LG StanbyME 2 Portable TVs

HDTV 4K & 8K TV

LG's new StanbyME 2 is a portable smart touchscreen TV with a detachable design, QHD screen, built-in battery, and flexible placement.

Pro-Ject E1.2 Turntable Top Black Pro-Ject E1.2 Turntable Top Black

New Products

Pro-Ject E1.2 delivers audiophile-grade performance at a budget price. A real entry-level winner with serious upgrades and no gimmicks—just sound.

Cambridge Audio Melomania P100 SE White Headphones in hand Cambridge Audio Melomania P100 SE White Headphones in hand

New Products

Cambridge Audio's Melomania P100 SE brings audiophile-grade ANC, 100-hour battery life, and aptX Lossless Bluetooth in a sleek £249/$299 package.

Audio Advice Revelation Luxury Home Theater Chairs with Underneath Lighting On Audio Advice Revelation Luxury Home Theater Chairs with Underneath Lighting On

A/V Furniture & Accessories

Tired of sharing a stained IKEA couch with your dog? The Revelation Luxury chair from Audio Advice brings heat, massage, USB-C, and legit comfort...

Epson ProCinema LS9000 projector. Epson ProCinema LS9000 projector.

New Products

With true 4K resolution, a bright colorful image and a motorized lens for maximum flexibility, Epson's new Pro Cinema LS9000 offers a lot of...

Gift Ideas?

Amazon Prime Day is July 8-11, 2025

Daily Deals

Amazon Prime Day is a four-day shopping event from July 8-11, 2025 offering the biggest discounts of the year on consumer electronics.

You May Also Like

Advertisement

ecoustics is a hi-fi and music magazine offering product reviews, podcasts, news and advice for aspiring audiophiles, home theater enthusiasts and headphone hipsters. Read more

Copyright © 1999-2024 ecoustics | Disclaimer: We may earn a commission when you buy through links on our site.



SVS Bluesound PSB Speakers NAD Cambridge Audio Q Acoustics Denon Marantz Focal Naim Audio RSL Speakers