and now I get Sirius free for one year, even though I've been paying for it out of pocket since 2004...
I fear SIRI may cannabalize their existing subs with 1-year free deal...
virtually every retail sub will eventually buy a new car, and when they do, they will probably want Sirius integrated and end up getting a year of free service..that's a lot of lost revenue
Basic rule of marketing is it is cheaper and easier to retain an existing customer than it is to add new ones. If someone doesn't know much about satillite radio and doesn't know what the difference is they won't be as willing to sign up for it. If they get it free in a car and they see how great it is they will be much more willing to realize that $13 isn't much and they are getting a great product.
16 million new cars sold in the US each year.
I just bought a new vehicle in July. I only got 6 months of Sirius free. I tried XM with one of those portable units last year. hated it because I kept having to find new FM stations as i drove through each city. Obvously having it factory installed i no longer do that. I am addicted(like so many others)to Sirius. So much so that i am planning to buy a unit for my house to add to my subscription. I also liked it so much i bought the stock at 3.70. Sat radio is a must have in the car, thats where the masses will pay. Factory installs are just hitting mass market over the next couple years. Best is yet to come.
I know many who don't EVER purchase a new car; especially here in Florida. All you have to do is watch the ads here and you can get a car that sat in someone's garage for a year, hardly any mileage to speak of...and you get it DIRT CHEAP. I haven't purchased a brand new car for years. Lot's of old people down here who are forced to sell for many obvious reasons: age, eyesight, death in family. Makes for a very lucrative used car business. These cars DON'T come equipped with SIRI.
good point....but....eventually those used cars will have the Sirius Radio in them. Now if Sirius could only send information to the used car buyer so they know about the availabilty....that would help subs increase.
Yet that is the sell as well. Get them for one year. I just got Sirius, and with the tunes they have, compared to commercial after commercial on regular air waves, after a year of enjoying satellite radio, you will NOT want to go back to regular radio. I think giving people the taste will make them regulars at the barbeque.
I just bought 100 shares at 3.84. Hope it goes up a buck-er-two.
your missing the point...
my point is, by making this available to everyone, they are going to cannabalize additional subs...
I've been paying them $12.95 a month since october of '04...now, they won't get any money from me for the next month...and it seems as though EVERY retail sub will go through this at some point
Add to that, the overwhelming minority of people have Sirius. So while there may be some who already have a subscription with a new car, the vast majority don't.
Did you ever consider that when you're in the market for millions, some moves might not appeal to everyone even if it appeals to the majority?
they aren't quit getting paid the same amount that they would get from a normal retail sub paying them a monthly fee...they take a bit of a loss since their benefit is that they ahev the potential to snatch up new subs this way
not really, because you will most likely end up buying a unit for your house and or the Stilleto. It's a great way of getting new customers. Once they try it out, they will renew and spend money on accessory items.