New SiriusXM CEO Jim Meyer is focused on telematics.
He tells Reuters that while the satellite radio business is doing well, in the long-term, dashboard services such as gas prices and safety features like roadside assistance are where the future lies for the company.
SiriusXM signed such a deal in the fall with Nissan and is looking for more agreements, according to the account.
Like traditional radio, satellite radio, too faces more competition in the car from other entertainment sources. Wall Street analysts like the intention because it could help broaden SiriusXM’s revenue stream.
“It’s not going to happen in six months. This is going to take a while,” Meyers tells Reuters, who sees an opportunity in telematics for the company in five to 10 years-time.
The company is talking to automakers now about what it can do for 2017 and 2018 models, according to the account.
Traditional radio is using both analog and digital signals to transmit data for things like gas prices and navigation data along with its broadcast signal. SiriusXM would charge extra fees for the new services to be included with its satellite-delivered content.