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

Our Reviews

Sony-ult-field-1-featured

Reviews

Sony's smallest speaker with ULT Power Sound, the ULT Field 1 packs a punch in a portable package.

Master & Dynamic MW09 True Wireless ANC Earbuds Black Master & Dynamic MW09 True Wireless ANC Earbuds Black

Earbuds & In-Ear Headphones

With some mild EQ adjustments, Master & Dynamic's MW09 are the best sounding wireless noise cancelling earphones we've heard to date.

Final UX2000 Wireless Headphones in Black and Cream Final UX2000 Wireless Headphones in Black and Cream

Reviews

There is a surprising amount to like in Final's wireless noise cancelling headphones which are now on sale well below $100.

Creative Aurvana Ace and Ace 2 Wireless Earbuds with Case and Package Creative Aurvana Ace and Ace 2 Wireless Earbuds with Case and Package

Earbuds & In-Ear Headphones

For under $150, Creative has two wireless earbuds which feature an innovative new xMEMS tweeter. Find out which model is right for you.

FiiO FT5 Open-back Planar Magnetic Headphones FiiO FT5 Open-back Planar Magnetic Headphones

Over-Ear Headphones

At $449, find out how the FiiO FT5 open-back planar magnetic headphones compare to Audeze MM-100, Sennheiser HD660s and Beyerdynamic DT1990 Pro.

PSB Speakers Alpha IQ in Tangerine Yellow with Turntable Lifestyle PSB Speakers Alpha IQ in Tangerine Yellow with Turntable Lifestyle

Reviews

Powered by BluOS, PSB's Alpha iQ is one of the most complete wireless loudspeaker systems available below $1,300.

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