York – Sirius XM said it will launch
its most aggressive advertising campaign to date on Nov. 15 to promote the
brand during the fourth quarter.
earnings call with analysts Thursday, Sirius XM CEO Mel Karmazin said now that
the merger and liquidity issues are past, there is a need to promote the brand.
“In 10 days, we will launch the most aggressive brand marketing campaign in our
history. With so much media coverage on our merger and past liquidity, it’s
time for consumers to hear about our content,” Karmazin said.
added later, “It’s been a while since we put the brand out there in
campaign will hit network and cable television as well as some Internet and
newspaper advertising as “a straight branding campaign,” said president and
chief content officer Scott Greenstein.
campaign may also be supplemented with fourth-quarter product promotions at the
retail level on the Internet, added operations and sales president Jim Meyer.
reporting its third-quarter financial results Thursday, Sirius XM also said it
expects positive subscriber growth for the full year 2010 as car sales are
expected to rise to 11.3 million units.
the company returned to positive subscriber growth for the third quarter, with
net additions of 102,295 overall subscribers, it continued to lose retail subscribers.
It shed 309,972 retail subscribers, compared with a pro forma loss of 149,417 net
new retail subscribers in 2008.
XM told analysts its new XM SkyDock is the cheapest product for Sirius XM to
build because it doesn’t require a screen and it’s also its easiest product to
install in the car.
XM also stated it had achieved a 55 penetration in new vehicles, expected to
increase to 58 percent by the end of the year, with much of the gain coming
from Toyota which is still adding satellite radio. Ultimately, the company expects to reach a
penetration rate in the mid-60 percent range as it does not want to achieve 100
percent penetration of lower-cost vehicles, it said.
said the company is also aggressively pursing the used car market.
Sirius XM now has 600,000 unpaid trial subscribers, who typically convert to
paid subscribers at the rate of 47 percent.