Sirius XM Radio and Volkswagen will include introductory three-month trial satellite radio packages to buyers of ‘certified’ used vehicles in the US as the heavily-indebted radio company looks for new sources of growth.
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Declining new-car sales mean Sirius won’t see as many new subscribers as previously hoped for through that venue, but the company told Dow Jones Newswires its increasing penetration rates should help it bounce back once car sales recover.
Sirius XM was created after the two rival satellite services merged. The service is now commonly fitted as standard on higher specification new car models in the US and also widely available as an aftermarket option. Most packages offer an initial free introductory subscription.
As it reported poor fourth-quarter results in March, the radio service said it was ramping up its efforts to reach second-hand car buyers, focusing on the certified used car programmes most automakers offer, Dow Jones noted. Lost subscribers contributed to its recently reported first-quarter loss.
Volkswagen’s Chris Hoehner told the news agency the three-month introductory trial offer was part of its efforts to attract customers to its used car programme. The automaker began offering Sirius with its 2007 model year new vehicles.
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By GlobalDataSirius, meanwhile, has been taking measures to refinance and pay down debt, most recently unveiling a US$350m offering of senior notes on Monday.
