Although Sirius XM Radio considers that radio is still a good business, it plans to focus on the in-car services such as automated safety, as this brings more opportunities.
Sirius XM Radio is currently investing in telematics, which is automated security and safety services in cars, similar with GM’s OnStar brand. Last autumn the company has already signed a deal with Nissan and it is already looking for other agreements, according to CEO Jim Meyer.
Meyer was recently named full-time CEO of Sirius after he served as interim CEO for six months. He joined the company in 2004 and was responsible for the relationships with the auto industry. Besides telematics services, which include roadside assistance and stolen vehicle tracking, Sirius will also offer ‘infotainment’ and entertainment services such as gas prices and weather information.
Analysts believe that the idea of diversifying Sirius’ revenue is not bad at all taking into consideration that competition in this area gets tougher and tougher, if we are to think at Pandora for example. Sirius has already began talks with automakers on what the company do in the 2017 and 2018 vehicle models, but the company has not set yet a revenue target for this plan.
“The specific pieces of how we’re going to evolve down that path will take shape in the next six to 18 months,” said Meyer.
Source: Automotive News