XM Radio 2015 Annual Report Download - page 65

This Annual Report presents information for Sirius XM Holdings Inc. (“Holdings”). The terms
“we,” “us,” “our,” and “our company” as used herein and unless otherwise stated or indicated by
context, refer to Sirius XM Radio Inc. (“Sirius XM”) and its subsidiaries.
Sirius XM Holdings Inc.
Sirius XM is a wholly-owned subsidiary of Holdings. Holdings was incorporated in the State of
Delaware on May 21, 2013. Holdings has no operations independent of its subsidiary Sirius XM.
Special Note About Forward-Looking Statements
We have made various statements in this Annual Report that may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements may also be made in our other reports filed with or furnished to the SEC, in our
press releases and in other documents. In addition, from time to time, we, through our
management, may make oral forward-looking statements. Forward-looking statements are subject to
risks and uncertainties, including those identified above, which could cause actual results to differ
materially from such statements. The words “will likely result,” “are expected to,” “will continue,” “is
anticipated,” “estimated,” “believe,” “intend,” “plan,” “may,” “should,” “could,” “would,” “likely,”
“projection,” “outlook” and similar expressions are intended to identify forward-looking statements.
We caution you that the risk factors described above are not exclusive. There may also be other
risks that we are unable to predict at this time that may cause actual results to differ materially
from those in forward-looking statements. New factors emerge from time to time, and it is not
possible for us to predict which will arise or to assess with any precision the impact of each factor
on our business or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of
the date on which they are made. We undertake no obligation to update publicly or revise any
forward-looking statements, except as required by law.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
(All amounts referenced in this section are in thousands, except per subscriber and per
installation amounts, unless otherwise stated)
Executive Summary
We transmit music, sports, entertainment, comedy, talk, news, traffic and weather channels, as
well as infotainment services, in the United States on a subscription fee basis through our two
proprietary satellite radio systems. Subscribers can also receive music and other channels, plus
features such as SiriusXM On Demand and MySXM, over our Internet radio service, including
through applications for mobile devices. We are also a leader in providing connected vehicle
services. Our connected vehicle services are designed to enhance the safety, security and driving
experience for vehicle operators while providing marketing and operational benefits to automakers
and their dealers.
We have agreements with every major automaker (“OEMs”) to offer satellite radios in their
vehicles. We also acquire subscribers through marketing to owners and lessees of previously
owned vehicles that include factory-installed satellite radios that are not currently subscribing to our
services. Additionally, we distribute our satellite radios through retailers online and at locations
nationwide and through our website. Satellite radio services are also offered to customers of certain
rental car companies.
As of December 31, 2015, we had approximately 29.6 million subscribers of which
approximately 24.3 million were self-pay subscribers and approximately 5.3 million were paid
promotional subscribers. Our subscriber totals include subscribers under our regular pricing plans;
discounted pricing plans; subscribers that have prepaid, including payments either made or due
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