SiriusXM: “Connected cars absolutely an opportunity”
Pay-radio operator SiriusXM is working hard to deliver tap into its subscriber’s vehicles, and drivers demand for additional services. CEO James Meyer, speaking at the Bank of America/Merrill Lynch Communications & Entertainment conference on Sept 15th, emphasised his enthusiasm from new services. Meyer also said he was looking to acquire businesses working in the vehicle telematics area, and had a target of seeing its system in 90-180 million vehicles.
“I see the connected car absolutely as an opportunity. For us it’s going to build capabilities into the vehicles [which] is going to have a profound effect both on our product and on the way we manage our subscriber lifecycles and the way our customers deal with us from a service and a care standpoint. So I believe connected vehicles are a huge opportunity for Sirius XM and that’s the way we’re going after that market. Obviously, there are other competitors that come with it. But I am less concerned with that and more concerned with how do we harness [connectivity] and make it great for us.”
Meyer was being interviewed by Jessica Reif Cohen from the bank, and he said that the pre-owned (second-hand) car market was now extremely important to SiriusXM.
Sat-building is $250bn of business
Euroconsult’s latest data on the value of the satellite construction industry says that over the next 10 years some 1450 satellites are due to be built, and with a combined value of some $250bn. According to the 19th edition of the report Satellites to be Built & Launched (over the next ten years), due to be published later in September, Euroconsult anticipates that 145 satellites with launch mass over 50kg will be launched on average each year by 2025 for government agencies and commercial organizations worldwide. When including satellites smaller than 50kg and the two mega constellations of OneWeb and SpaceX, the total would grow precipitously to 9,000 units (vs. 1,480 launched in the past ten years).
“Huge growth in satellite count does not automatically translate to a large market,” said Rachel Villain, Principal Advisor at Euroconsult and editor of the report. “As the price of the 7,550 future additional satellites is intrinsically low, the very reason for their existence, their market significance is small; they should represent no more than 8% of the $270bn to be spent building and launching the total of 9,000 satellites.”
The 1,450 satellites over 50kg to be launched over 2016-2025 should represent a market of $250bn for the space industry to build and launch. A price decrease is visible in this core market of the industry, driven by 11 commercial constellations using 370 small satellites to be deployed into low or medium Earth orbits for communications or Earth observation.