XM Radio 2014 Annual Report Download - page 3

ESPN. We’ve created entirely new channels such as SiriusXM Insight and Business Radio Powered
by The Wharton School.
We’ve pioneered new music shows with YouTube that build on our priority of music discovery
and add to the value of our service. We’ve expanded the range and depth of our commercial-free
music programming with the introduction of three new channels in country, pop, and dance. We’ve
built on our Town Hall series with an even broader range of artists, entertainers and other notables,
including Barbra Streisand, Chris Rock, Taylor Swift, Pitbull, Neil Diamond, Jennifer Lopez, Chelsea
Handler, Original Cast Members from Sesame Street, Dave Grohl, and Carlos Santana, to name
only a few. We’ve broadcast exclusive, live and invitation-only performances with The Black Keys,
Metallica, Boyz II Men, and Chris Martin of Coldplay. We also broadcast many of the top live music
festivals, including Austin City Limits Music Festival from Texas, Electric Daisy Carnival in Las
Vegas, and Lollapalooza in Chicago. And we’ve launched exclusive, limited-time channels with
Barbra Streisand, Billy Joel, AC/DC, Tom Petty, Foo Fighters, Kenny Chesney, and Tim McGraw,
among others. Earlier in the year, we held a special Birthday Bash to celebrate Howard Stern’s
birthday and it was a smash hit covered by extensive national media, and attended by top
performers and celebrities, as well as our subscribers.
On the sports front, we continue to offer the most extensive schedule of live sporting events on
radio, giving our listeners access to games from every major sports league, college football and
basketball, NASCAR races, PGA TOUR golf events and more. In 2014, we provided comprehensive
coverage of the World Cup on SiriusXM FC. Our soccer channel also airs matches from the
Barclays Premier League, UEFA Champions League, La Liga, Serie A and this summer will air
Women’s World Cup matches. With our comprehensive play-by-play schedule and more than a
dozen dedicated sports channels, SiriusXM offers both a quality and quantity of sports programming
that rises above anything else in radio.
Our OEM Relationships are Strong and Expanding
With new car sales fully recovered, SiriusXM is benefitting from strategically important
relationships that go back many years with all of the major car makers. We are installed in seven
out of every ten new cars sold, available in every major car maker, as well as many niche brands.
Every major automaker now offers a SiriusXM trial to customers buying or leasing a new car that
includes a satellite radio. In 2014, we launched or renewed trial subscription programs for satellite
and infotainment services with major car brands such as Volvo, Maserati, Mercedes Benz, and
Nissan. Our penetration in new car sales has created an ever growing fleet of vehicles on the road
with factory installed satellite radios. Today that fleet is about 70 million; it will roughly double its
size to 140 million by 2022. We are poised to continue to benefit from the growth in auto sales,
and new car sales create an increasingly larger pool of used cars with satellite radio installed.
In the massive used car market—a fertile field for us to find new subscribers since used car
sales far exceed the annual sales rate of new cars—we now have a national network of more than
15,000 dealers enrolled in our program offering trial subscriptions to their customers. And we have
enrolled more than 6,000 dealers in our SiriusXM Service Lane program since it launched in 2013,
which offers drivers trial subscriptions when they have their vehicles serviced at participating
dealers.
In the promising connected vehicle services marketplace, we will expand our reach amongst
existing and new OEMs. We are uniquely positioned as car makers produce vehicles to connect to
internet and mobile data services. Our $525 million acquisition of the connected vehicles services
unit of Agero Inc. has been fully integrated into our operations. Today it is the bedrock of a
state-of-the-art offering of connected vehicles services for personalized safety, convenience and
security. We have agreements to provide connected vehicles services and solutions to a wide range
of car makers and their brands, including Acura, BMW, Honda, Hyundai, Infiniti, Lexus, Nissan,
Rolls-Royce, Subaru, and Toyota.