Sirius XM Radio Inc looks to expand the reach of its satellite radio service with the second-quarter launch of an iPhone application as it explores a potential marketing partnership with satellite TV provider DirecTV Group. The company, which had to sell a 40 percent equity stake to John Malone’s Liberty Media to resolve looming debt problems, is looking for new revenue streams as its primary distribution outlet, new car sales, is looking “terrible” this year, management said on Thursday.
Sirius said the iPhone application would be available to its 19 million subscribers and to Apple Inc’s 7 million U.S. iPhone users. It can also be used by iPod Touch Wi-Fi users. “This is a large and interesting opportunity that will maintain our subscription-based economics while providing customers easier access to our content through means other than our traditional satellite-based platform,” Sirius President of Operations and Sales Jim Meyer said on a call with analysts.
Sirius also sells satellite radios through traditional retail outlets, but it had a very weak fourth quarter, when electronics chain Circuit City, a major customer, filed for bankruptcy. “There’s a lot of opportunity for (Sirius) with iPhone,” said Miller Tabak analyst David Joyce. “Unlike buying a new car, it’s not an expensive proposition, but it’s a tough time for consumers to be trying new products.”
The company said it was benefiting from “truly extraordinary” operating efficiencies following its protracted acquisition of XM Satellite Radio, which closed last year. Sirius said it would post positive earnings before interest, taxes, depreciation and amortization in 2009, the first year it would do so. However, Sirius said the USrecession made it impossible for it to forecast revenue or give a more detailed earnings outlook.
(Source: Reuters)
on Mar 19th, 2009 at 17:04
So presumably this Iphone app would only permit access to users in the USA, or could we all benefit, as I know there are some great radio stations available on that platform.