XM Radio 2015 Annual Report Download - page 4

SiriusXM continues to be the leader in exclusive radio programming, launching several new
curated commercial-free music channels, and new comedy and news channels, including Pitbull’s
Globalization, Tom Petty Radio, FOX News Headlines 24/7, Radio Andy, and SiriusXM Comedy
Greats.
SiriusXM also continues to be the “go-to destination” for the world biggest music stars as well
as its most promising newcomers. SiriusXM broadcast many of the year’s top concerts and music
festival performances, including those from Coachella and Lollapalooza, and all the historic reunion
concerts of the Grateful Dead from Chicago. SiriusXM’s music channels also continued to lead the
industry in music discovery. In 2015, we were credited with breaking artists such as Elle King, Andy
Grammer, Old Dominion, and Nathaniel Rateliff, all of whom went on to have #1 songs after being
heard first on SiriusXM.
Looking ahead to 2016, we will provide our listeners every side of the U.S. presidential
election, continue to cover every major sporting event, and offer commercial-free music, plus talk,
entertainment, comedy and lifestyle radio that is the best in audio entertainment.
Increasing Our Presence in New and Used Cars
SiriusXM continues to increase its presence in the car, with our penetration rates increasing in
both new and used cars. In 2015, SiriusXM radios were available in approximately 75% of all new
cars—a 4 percentage point increase from the prior year and a reflection of the value automakers
see in our product. We ended 2015 with approximately 82 million enabled vehicles on the road,
meaning that approximately one-third of the car fleet in America has a factory-installed satellite
radio.
As the fleet of satellite radio-enabled cars continues to grow, our used car business becomes
an even more important channel. We estimate that our radios were in approximately 28% of the
used cars sold in 2015—a 4 percentage point increase from the prior year—and we expect that the
used car market will yield a predictable arc of subscriber growth for many years to come.
We are proactively working to capitalize on this opportunity by focusing on lead generation,
offering trials, and marketing our paid subscription to owners of pre-owned cars. To that end, we
now offer used car trials to our services at approximately 19,000 franchised and independent dealers.
We are also looking to increase our penetration in the private sale arena with new and innovative
approaches, including affinity marketing and even working with startup companies in the field.
Investing In Technology to Stay Ahead of the Curve
We are continuing to expand our offerings and deepen our relationships with auto dealers as
the auto industry continues to evolve. First, we are continuing to invest in our connected vehicle
services business, which we have built into a leading provider of safety, security and convenience.
Our connected vehicle services are featured across a growing number of vehicle brands, including
Acura, Audi, Honda, Hyundai, Infiniti, Jaguar, Land Rover, Lexus, Nissan, Subaru, and Toyota.
We are also developing new technologies, including SXM17—a next-generation platform for
audio services that combines the benefit of satellite radio with two-way cellular connectivity. This
technology will make our acclaimed content even more discoverable and accessible in the car while
maintaining ease-of-use.
We recognize that change in the auto business takes a long time. However, the connected
transition is underway and we believe we are making the right investments to capture future growth
opportunities.