Satellite radio may not be the newest shiny toy in the car dashboard, but it is still alive — and well — there, according to a recent New York Times business profile of SiriusXM.
As of late 2015, the company is doing well, having overcome a merger, bankruptcy scare and competition from both terrestrial and Internet radio, in order to clear $510 million on $4.6 billion in revenue.
The company credits this to diversity of content and a deep talent bench that is able to focus on listener demographics both older and younger, as well as paid partnerships with all the major auto manufacturers (ensuring that 75% of new cars sold in the U.S. come with satellite radio installed).
Renewed deals with the National Football League and Howard Stern represent a modicum of stability, and Stern’s new five-year contract also includes new video content and access to AV archives for the satcaster.
Despite efforts to appeal to cord cutters through programming and promotions, SiriusXM’s long-term future may not be assured, as automakers are increasingly integrating streaming apps and Internet connectivity into vehicle space traditionally occupied by terrestrial and satellite radio.
Read the full article online here.