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SiriusXM Talking to OEMs About In-Car Streaming App

CEO Jim Meyer cites strong auto sales for its good quarterly performance

SiriusXM’s paid subscriber base is now up to 25 million, crossing that threshold in the second quarter. The satcaster added more than 715,000 net additions in Q2.

Company CEO Jim Meyer told analysts more automakers will join Chrysler this fall with a transition to the SiriusXM 2.0 chipset in model year 2014 vehicles. That’s in addition to its telematics. We reported the company launched an in-car streaming app with Ford, enabling those customers to get added satellite radio features using either a satellite or IT connection.

The satcaster is talking with all of the major automakers about including the app on their platforms, Meyer said as the company announced its Q2 earnings.

The company is also planning to introduce Service Lane Program. The idea is dealers would select loyal customers to get a free two-month satellite radio trial.

SiriusXM cited strong auto sales, approaching 16 million in June, for its good quarterly performance. The company reported revenue for the second quarter of 2013 of $940 million, up 12% to $838 million for the same period in 2012.

Subscriber acquisition costs continue to decline, SAC per gross ad was $52 in the quarter, compared to $82 in Q1 of 2001. The churn rate, the number of subscribers who drop the service, was 1.7%, down from 1.9% in the second quarter of 2012.

One unexpected bit of news from the call — the planned mid-August launch of the Sirius6 satellite has been delayed pending results of a report concerning a Proton rocket launch failure for the Russian government. Meyer said SiriusXM customers would not be affected.