SiriusXM and Ford Go Beyond Satellite Radio
This has been a painstakingly slow process, but it appears that SiriusXm is finally gaining some real traction on getting OEM’s to pony up for telematics services. As consumers, we all have telematics in our lives, typically through a smart phone. That being said, smartphone integration of services into the automobile has had challenges. Consumers want these services, but are hesitant to pay for them when they can access them virtually free on a smartphone. That being said, having your car operate such services independent of the cell is desirable. Simply stated, the car companies are seeking a way to get a desired service to the consumer and now seem to be willing to pay for fulfill that need.
SiriusXM has offered telematics services for quite some time now, yet the traction of the service has been tepid at best. Even with free trials, the telematics side of the service has typically been dropped like a hot potato at the moment a consumer needed to start paying. The news about Ford’s new efforts gives consumers what they want and makes Ford vehicles more desirable.
“Giving our customers SiriusXM’s unparalleled diversity of information and entertainment services enhances the experience of driving a new Ford vehicle equipped with navigation,” said Chantel Lenard, U.S. Marketing Director, Ford Motor Company.
The news is that, beginning with the 2015 model year, all Ford vehicles equipped with navigation will get 5 years of the added services standard. Ford drivers and passengers using SiriusXM Traffic and SiriusXM Travel Link will have access via satellite from SiriusXM to a suite of services with features that include:
- Traffic speed: Color-coded roads on the vehicle’s navigation screen show traffic speed in major metro areas
- Accidents, construction and road closures: Receive traffic alerts, including information about accidents, disabled vehicles, construction and road closures
- Alternate route guidance and mapping: In-vehicle navigation system and detailed traffic data allow drivers to choose alternate routes and receive updated directions to avoid congested roads
- Fuel prices: Get detailed information on fuel prices and the ability to sort by lowest price, fuel type, distance or brand name
- National weather information: Receive coast-to-coast weather data including current conditions, five-day forecasts and weather maps
- Sports scores: In-game and final scores, as well as weekly game schedules, for world-class professional sports and college programs
- Movie listings: Access detailed local movie theater listings, including start times and ratings
Customers purchasing any new Ford brand vehicle equipped with satellite radio also receive a six-month subscription to SiriusXM’s All Access Package with access to SiriusXM’s premium programming lineup. This includes every NFL game, Howard Stern, every NASCAR® race, Oprah Radio® and MLB Network Radio™, plus access to SiriusXM Internet Radio on smartphones and other connected devices as well as online at siriusxm.com.
From an investors standpoint, seeing Ford step up to the plate is huge news. Nissan jumped in a little over a year ago, but since then, there has been little movement in the OEM channel in regard to these services. With Ford now getting involved, other OEM’s will soon need to figure out a way to address their own needs in an effort to keep pace. Additionally, this type of deal will give an added revenue stream that has been slow to develop. It is still early in the process, but early signs are getting more positive. Stay Tuned!
“With Ford now getting involved, other OEM’s will soon need to figure out a way to address their own needs in an effort to keep pace.”
Now Lincoln joins the parade offering 6 years (outdoing Ford’s 5) Travel and Travel Link! Plus 6 months All Access radio including internet.
Per the following comment, this is satellite delivered and not connected car via Agero –
“SiriusXM Traffic and SiriusXM Travel Link provide luxury vehicle customers with valuable driving and entertainment information delivered via satellite from SiriusXM.”
I’d also like to see a deal announced for a product they wouldn’t have without the acquisition of Agero. They are counting on $100m in revenue annually at present from this business.
Slip….
Lincoln is part of Ford, so there is no real surprise in the announcement.
While the delivery is indeed satellite, the Agero ownership by SiriusXM can certainly help negotiate these deals.
Spencer,
Great insight! Here you deserve kudos for seeing much deeper what just happened than pretty much everybody else. I was shocked at little or no reaction to this development that will most likely have very serious benefits for the company in the long-run.
sirifair….
Thank You for the kind words
Spencer-
A few questions…
Any idea how much Ford (and Chrysler) are paying for the service?
It seems to me that this is an extension to 5 years of something that Ford was already purchasing for three years on many of their higher end trucks. Is that correct?
Any ideas about how much deeper the penetration goes with this deal since it only applies to those “customers purchasing any Ford brand vehicle equipped with navigation” and not all Fords come equipped with navigation.
Any idea why Microsoft – who helped Ford with MyFord Touch – was left out in the cold despite MSFT’s alliance with Nokia traffic apps?
Thanks… If you want to take this off-line, that would also be great. (Hope you had a happy 4th!)