Sirius XM at Deutsche Bank Conference Notes

posted in: Notes | 0

James Meyer — CEO

We just don’t see a disruption from streaming services

“we just don’t see yet any disruption to our business from streaming services, we just don’t see it. And you know as you can imagine, we spend a significant amount of time talking to customers about why do they leave and the vast majority of that are going to terrestrial radio that – I think there is a reason why 230 million listening to terrestrial radio.”

Used car sales are 43-45m per year

“there is 240 million cars in this country, there is let’s say there is going to be 17.5 or 18 million new one sold this year, that tells you how long it takes these fleet to turnover, it’s a long, long time, okay. The average person keeps a new car in this country about 71 month today. So it takes a long time. But think about it, if there is 17.5-17.7 million new cars sold, I think the amount of used car sold is by closer to 43-45 million.”

I don’t see any clouds on the horizon for new car sales

“And so I hope the new car business in this country stay strong for a long, long time. By the way I have to tell you I just don’t see the clouds on horizon right now for the new car business. I mean I probably spend more time with the automakers than anybody and I think they share you know. I mean if you look at gas prices, if you look at new home starts which drive truck sales, you know if you look at interest rates and you look at the age of the fleet, it all says the business ought to be robust and it certainly feels pretty good right now.”

Going to see some relationships in the financing area

“I think you’ll see us shortly announce some relationships in the financing area. And in 2016 what I am far more concerned about is learning and getting some of those things right as opposed that how many can we sign up right away, okay, because I want to make sure, our teams understand what are we getting and what’s the quality of it for what we are doing. So in ‘16 you’ll see us kind of rather than seeing how many and we can announce much more a few but really learning and get him going.”

More and more cars have an embedded modem

“But – and that will start going across a lot of new vehicles. At the same time, you are seeing a lot more new vehicles made with embedded modems. And I’ve said publically and you should assume, I actually know this, okay, is that by the end of this decade, the vast majority of new cars built meaning in 2020 if there is 18 million new cars built, I would guess 90% of them will have an embedded modem in. Why? It has nothing to do with entertainment, noting, okay. Those embedded, they want to be closer to their customers.”