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50 percent of all new cars to feature satellite radio in 2009

10/22/2008, 1:28 PM

By Drew Johnson

Just one year ago, only 15 percent of all new cars sold in the U.S. came with some form of satellite radio. For 2008, that number will hit about 30 percent. But in 2009, that number is expected to top 50 percent, matching the same percentage as vehicles equipped with iPod connectivity.

Because satellite radio is becoming so popular with car buyers, the world’s automakers have been really taken notice of the Sirius-XM merger – a deal which has been several months in the making.

Since the deal was finalized in July, Sirius XM Radio Inc. has offered a new programming selection, called “Best of Both.” The package adds just a few extra channels to either Sirius or XM’s channel lineup, but tacks on another $4 a month to subscribing costs – about 40 percent of the cost of a monthly subscription. While most customers figured the merger would have a much further reach, a true combination of services is still likely more than a decade away.

According to Automotive News, merging the two technologies for automotive use will take about 15 years. That long lead time is due to Sirius and XM needing to straighten out their technology compatibility and the long lead time associated with new vehicles.

But Sirius XM CEO Mel Karmazin is confident the satellite radio merger will end up being good for the auto industry. But joining forces, Sirius XM will now be able to custom tailor subscription packages – that include radio, TV, real-time traffic reports and other navigation functions – to differentiate future vehicle models.

“Building on the success of our audio entertainment and technology infrastructure, we can bring the relationship to a strategic level by partnering with OEMs to position new-vehicle launches with differentiating Sirius XM features,” he told Automotive News.

Although Sirius XM is positioning itself as a crucial component for the automakers, it’s not exactly a one way street. About 75 percent of Sirius XM’s business comes from the world’s automakers.

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10/22, 1:37 PM

posted by:

edgeguy

Is this really news?

10/22, 1:47 PM

posted by:

A4

nope

10/22, 3:28 PM

posted by:

Lariat Luxury Locomotive Liner No.3

It’s free advertising for Sirius.

10/23, 10:50 AM

posted by:

mayer_ray_nagin

Karmazin is an idiot, and Siri is as good as bankrupt. Satrad players will be as useful as 8-tracks in a few years.

10/23, 1:14 PM

posted by:

TomF

In this economic environment, who cares?

 
 
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