Hiring personalities like Howard Stern and Winfrey Oprah was a great move by the company. Having the service of such great figures captured a lot of attention from the general public. SiriusXm’s major source of revenue comes from the sale and lease of automobiles equipped with satellite radios. In 2013 there were 15,6 million new cars sold in US and 70 percent of them were equipped with satellite radio. Forecasted sales for 2014 were 16.3 million. The main activity they should undertake is building agreements with as much car companies as they can. They were able to sign an agreement with almost all the vehicle makers in US.To boost the percentage of the cars equipped with satellite radios, SiriusXm continued to use subsidies and incentives
…show more content…
In order to reach to these customers, SiriusXm developed a long-standing practice of rewarding automakers for installing satellite radios.
Another activity SiriusXm was engaged to was selling Satellite and Internet radio directly to their customers from their online website. Doing so, creates a stronger relationship with the customers. Offering their customers Internet radio on top of their satellite radio translates in an added value.SiriusXm reached agreement with certain rental car companies to equip most of their cars with satellite radio, so the customers of these rental car firms would be able to experience the service offered by SiriusXm.
SiriusXm worked with franchised and independent vehicle dealers in order to promote and sell subscriptions for certified and uncertified used vehicles that provided satellite radio services. Share-based payments were paid to automakers, franchised dealers, independent used-car dealers and the retailers of satellite radios. These payments went from $63.3 million in 2010 to 68.9 millions in 2013 and they were placed under “ Royalty and revenue-sharing payments” in their income
In order to reach to these customers, SiriusXm developed a long-standing practice of rewarding automakers for installing satellite radios.
Another activity SiriusXm was engaged to was selling Satellite and Internet radio directly to their customers from their online website. Doing so, creates a stronger relationship with the customers. Offering their customers Internet radio on top of their satellite radio translates in an added value.SiriusXm reached agreement with certain rental car companies to equip most of their cars with satellite radio, so the customers of these rental car firms would be able to experience the service offered by SiriusXm.
SiriusXm worked with franchised and independent vehicle dealers in order to promote and sell subscriptions for certified and uncertified used vehicles that provided satellite radio services. Share-based payments were paid to automakers, franchised dealers, independent used-car dealers and the retailers of satellite radios. These payments went from $63.3 million in 2010 to 68.9 millions in 2013 and they were placed under “ Royalty and revenue-sharing payments” in their income