SiriusXM Sweetens the Deal for New Car Buyers
If you’re considering purchasing a new car in 2014 consider this, anyone who purchases a new 2014 model Chrysler equipped with a satellite radio Uconnect system will score a free full year satellite radio subscription which includes ALL premium channels AND access to SiriusXM Internet Radio.
What is Uconnect? Uconnect is an in-dash Wi-Fi capable and Bluetooth enabled whole car command center. For the layman, it’s a really fancy radio that allows drivers to do all kinds of things like adjust the temperature, get traffic reports, and even change the channel or make a call with voice commands.
Free satellite radio might not exactly be enough to sway you when making such a major purchase but, it’s a nice little perk nonetheless. A perk that will finally give newcomers to SiriusXM the full experience of what satellite radio has to offer.
And the obligatory quote from important executive guy … “With SiriusXM’s expanded channel lineup available via satellite in more vehicles from Chrysler Group, even more drivers and passengers will get access for the first time ever to an even deeper variety of commercial-free music, comedy, and live sports, along with the ability to listen outside of the vehicle with access to SiriusXM Internet Radio,” said Steve Cook, Executive Vice President, Sales and Automotive, SiriusXM.
If first impressions are everything, I’d hate to think what a person who just purchased a 2005 used car thinks about their new free trial subscription on an old outdated display, with no premium content, and no idea how great the added value of the Internet feed is. Something tells me SiriusXM’s customer retention rates are about to get a little bit better.
Who pays for this 1 year free SiriusXM satellite and internet subscription? I sure hope this is not a lost year of revenue for SiriusXM.
It is my understanding that Chrysler pays some discounted rate for the subscription and gets a monthly kickback if the customer converts to a self pay subscriber.
If the customer converts, which they typically do, SiriusXM increases their revenue. It costs money to make money.
So, Charles, if I am a current all access sub and I trade for a new 2014 Chrysler, cancel my old sub and have a free sub for my new Chrysler, SXM loses a self pay sub and gets discounted revenue on the free sub…right? If so, in that case, seems like a net loss for the year, but long term a positive if I renew? But, overall, getting revenue from “all” new sales of Chryslers in 2014 should be a huge positive overall for next year and years going forward…lets hope other auto companies start doing same. This seems to me to be a really a big deal? Would have thought the market would have reacted in a positive way, but didn’t?
That is correct. If you cancel a sub in favor of a free sub, that is bad for SiriusXM. That said, this has always been the case but, at least now they are getting you over to a new/better piece of hardware which is likely to keep you locked in as a happy paying customer longer.
As far as I know, Chrysler subs have always been counted when they are sold but Spencer knows the details better than I do. One would assume that this longer term deal with Internet Radio included has changed their deal somewhat but, as far as I know, those details are not public.