Sirius XM confirmed it will launch two new premium services for its Internet subscribers including an on-demand service that will let subscribers access some of the best content on satellite radio.
Sirius XM CEO Mel Karmazin
CEO Mel Karmazin told analysts Thursday, the on demand premium service will offer “a continually updated library of some of our best content for listening on [the users’] time schedule.”
Additionally, later this year, the company will offer “personalized radio that will let people tailor music to their own preferences,” he said.
The premium services will be offered via the Internet for those who pay the extra Internet fee, and may be accessed through smartphones and other devices.
The satellite radio company also reported its Q4 results, with strong net new subscriber additions for 2011 of 1.7 million listeners, up 20 percent over the year prior.
The company’s rate hike to over $14/mo went into effect January 1, and has impacted the company as expected, it said. “Initial indications about consumer reaction are meeting our expectations…we are not seeing any major problems yet from the increase…” said Karmazin. But half of the sat radio’s customers are on pay plans of a year or longer so the full impact won’t be visible until over a year from now. Karmazin cautioned however that churn (subscriber drop out) might rise to 2.1 percent this year, up from the usual 1.9 percent.
With new car sales expected to rise by almost 8 percent this year to a 13.7 million, SiriusXM predicts new subscribers will increase 6 percent this year with net additions of 1.3 million reaching a total of 23.2 million.
Contributing to the growth will be sales from used car customers. SiriusXM is now offering 3-month free trials at over 4,000 dealers and more will be added this year.