XM Satellite Radio Gets 10-Year Extensions With Carmakers - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Hardware & Infrastructure

XM Satellite Radio Gets 10-Year Extensions With Carmakers

Two large automakers have agreed to factory-install XM radios in cars well into the next decade.

XM Satellite Radio Holdings says Honda and Toyota have agreed to factory-install XM radios in cars for another 10 years.

The deals are important because XM and its rival Sirius Satellite Radio have targeted carmakers as a key channel for new subscribers.

XM's deal with Toyota Motor Sales USA Inc., announced Wednesday, extends the current partnership through 2017. Toyota offers factory-installed XM radios on Toyota and Lexus models, and expects the number of equipped vehicles to exceed 1 million by 2010, according to XM.

The agreement with Honda Motor Co. Inc. extends the U.S. partnership through 2016. American Honda, which markets Honda and Acura models, expects to have XM radios in 650,000 2007 vehicles. Honda has shipped 1.5 million XM-equipped cars since the partnership began in 2003, Washington, D.C.-based, XM said.

XM and Sirius have been steadily adding subscribers, but both remain unprofitable, despite achieving positive cash flow from operations in the last quarter of 2006. XM ended the year with 7.6 million subscribers, Sirius with slightly more than 6 million.

While the companies remain fierce competitors, some analysts have said a merger is possible. However, it could be difficult to get such a deal approved by government regulators.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Slideshows
10 Ways to Prepare Your IT Organization for the Next Crisis
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/20/2020
News
IT Spending Forecast: Unfortunately, It's Going to Hurt
Jessica Davis, Senior Editor, Enterprise Apps,  5/15/2020
Commentary
Helping Developers and Enterprises Answer the Skills Dilemma
Joao-Pierre S. Ruth, Senior Writer,  5/19/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll