SiriusXM CEO Jim Meyer is pleased where the satcaster is coming off an “outstanding” second quarter.
He recently told investors at the Goldman Sachs conference the company has momentum with new car sales and used car sales are “very strong.”
There are some 240 million cars that “stagnated” during the recession, Meyer said — he’s referring to the fact that the average car on the road is now 11 years old. That pent-up demand is driving new car business.
“But if new car sales are in the middle 17s, used car sales are closer to 40 million a year,” he said, according to a Seeking Alpha transcript.
SiriisXM has been going after the used car buyer for a long time; Used, or as they like to phrase it “pre-owned” vehicles bring a different demo buyer, plus, since SiriusXM has already paid the manufacturer a premium to place the satellite radio in the car, it doesn’t have to pay that again. “So we can accept a very low yield in the funnel and still come out way ahead,” says Meyer.
The company recently tried a deal with Jiffy Lube where it took data from the satellite radios of drivers coming to those locations and offered them a free trial if they were not already a subscriber.
Free, local broadcast radio is “by far, far” his biggest competitor, he stressed.
His appearance comes on the heels of Toyota extending its agreement with SiriusXM to provide telematics in Toyota and Lexus vehicles.
