June 2014 auto sales are in and the numbers remain quite positive for satellite radio. Sales this June were 1% better than a year ago and the overall pace for 2014 is still above 16 million units. With satellite radio being installed in nearly 70% of new cars, the potential to still see a little growth from the new car channel still exists. June 2014 sales came it at just above 1.4 million. With half of the year gone, the total sales in 2014 are now at 8.14 million. Sales for the most recent quarter stood at an impressive 4.4 million.
For SiriusXM satellite radio installations in new cars remains important, but the real fuel for growth is more likely to come from the used car channel. That said, new cars today will be used cars in the coming years. The more of these cars that are satellite equipped, the better. Looking forward to July sales, we should anticipate that they will not be as strong as June, but a similar 1% increase would mean that we can expect in the neighborhood of 1.33 million.
About half of the sales represented in any given month are from manufacturers that do not pay for the service in the free trial. These trials can become potential subs usually 3 or 4 months after the sale. SiriusXM is typically successful in converting about 42% to self paying. Stay Tuned!