SIRI Tue 7/21/09 Daily Thread

[TSavery]

First things first . . . Superb work Tyler; Tuna Amobi has nothing on you.

Thank you. I have said it before . . you are the "franchise"

There is very little to disagree with in your piece, however, Irish' research shows less impact due to refi . . any thoughts?

Also, I am still hopeful that the CPO channel will have been more additive than expected . . to both top & bottom line (nominal subsidies)

Franchise.....LOL. Thank you for the compliment, but I am nothing more than an average person who has followed this equity closely over the years, who happens to have a website.

I think that my position (having sold most of it prior to writting, and simply holding the rest) lets me look at this equity objectively. I make my money and trade in other equities.

[Sirius Roadkill]

David J. Frear

And then with respect to the used car market, with the OEMs, we’re in an early stage of launch in operationalizing how you approach the used car market, and while I would say it’s not a -- it doesn’t have a significant impact this year on our subscriber base, it’s going to grow rapidly that these kind of initial cars there were factory enabled by all of the OEMs are really now just beginning to show up in size in the used car market. So we’re getting the CPO program, certified pre-owned vehicle programs in place with the automakers. We’re doing more customized programs in the used car market that is outside of certified pre-owned, and I think we’ll have more news on that for you as we come into next year.

Mel Karmazin

Longer term, that market, which already has the SAC there, I mean, the radio is already in the car and our ability to get a new subscriber using that same radio is very attractive to us and that will be a very significant after-market channel for us in the future but not short-term.



eh, ok, so you're probably right Tyler . . . no pony for my birthday . . but a kid can dream can't he?

[JohnnyIrishXM]

Yes, true as far as VW, MB & BMW . . but I was surprised to see that the CPO program has been around for quite some time . . check-out this news release from Oct 2006 (note 33% CPO penetration even back then):

Posted on: Wednesday, 11 October 2006, 09:00 CDT

WASHINGTON, Oct. 11 /PRNewswire-FirstCall/ -- XM Satellite Radio , the nation's leading satellite radio service with more than 7 million subscribers, and Acura today announced the first complimentary satellite radio service program for Certified Pre-Owned (CPO) vehicles. Beginning this fall, Acura will offer three months of complimentary XM service on CPO Acura models with factory-installed XM Satellite Radio, including: RL, TL, TSX and MDX. Acura currently inspects, certifies and remarkets more than 35,000 previously-owned vehicles per year, with approximately one-third featuring standard XM Satellite Radio, a rate that will grow over time as XM continues to be offered as standard equipment across Acura models.

s-Kill,agree but as Tyler says,penetration and new in those luxury models are few and far between,plus remember the clientele that buy CPO luxury cars are repeat buyers every 3 years and probably have SXM already,so not a new sub..just transferring radio's in newer cars..

[JohnnyIrishXM]

David J. Frear

And then with respect to the used car market, with the OEMs, we’re in an early stage of launch in operationalizing how you approach the used car market, and while I would say it’s not a -- it doesn’t have a significant impact this year on our subscriber base, it’s going to grow rapidly that these kind of initial cars there were factory enabled by all of the OEMs are really now just beginning to show up in size in the used car market. So we’re getting the CPO program, certified pre-owned vehicle programs in place with the automakers. We’re doing more customized programs in the used car market that is outside of certified pre-owned, and I think we’ll have more news on that for you as we come into next year.

Mel Karmazin

Longer term, that market, which already has the SAC there, I mean, the radio is already in the car and our ability to get a new subscriber using that same radio is very attractive to us and that will be a very significant after-market channel for us in the future but not short-term.



eh, ok, so you're probably right Tyler . . . no pony for my birthday . . but a kid can dream can't he?

Exactly,not short term but it is important they realized this and as penetration goes up smartly in new OEM we will see substantial increase in SAC less new sub adds...

P.S. this will also phase out a new customer having to go to an audio shop and paying $300 to $500to having SXM installed in their car,which company gets nothing, is a big hassle to signing up as a customer..

[TSavery]

Exactly,not short term but it is important they realized this and as penetration goes up smartly in new OEM we will see substantial increase in SAC less new sub adds...

The CPO will become a real contributor in the Fall of 2010 and beyond. It is not a significant factor in 2009. I am not trying to be negative, it is just how the ball currently bounces.

[Sirius Roadkill]

The CPO will become a real contributor in the Fall of 2010 and beyond. It is not a significant factor in 2009. I am not trying to be negative, it is just how the ball currently bounces.

OK, fair enough . . . I've beat this one to death; I'm closing the books on CPO (lol)

Somebody else start up the next topic . . we got a couple weeks to kill between now and CC

[JohnnyIrishXM]

Ok,here is one...
How about with the new GM deal in OEM ,SXM buys out or starts up an On-Star like system for all new cars to help with Stolen cars,hands free phone conected to your cell phone account and Vehicle diagnostics in a monthly report,all for $14.95 per month..I currently have On-Star with my GM trailblazer,and SXM as part of the old GM deal leases bandwidth space on SATS to provide this service.it is also worth a 20% discount on your insurance part of Collision /comprehensive..Many possibilities here to create new revenue streams...

[mypearl]

any chance at .42 or .43 again today?

[SiriMonkey]

OK, fair enough . . . I've beat this one to death; I'm closing the books on CPO (lol)

Somebody else start up the next topic . . we got a couple weeks to kill between now and CC

Hi everybody,

I've got lots of topics to discuss, unfortunately not Sirius related.
I would get chased off this board.
Great article Tyler, wherever you are.

Julie

[JohnnyIrishXM]

Hi everybody,

I've got lots of topics to discuss, unfortunately not Sirius related.
I would get chased off this board.
Great article Tyler, wherever you are.

Julie

Hi Julie,
you can post any topic you want,doesn't have to be SXM related,that is boring right now, until 2QCC that is..!!!

So what topics you want to discuss?