Capitalizing On The Growth
Updated 8.9.19: In the 1950s, when you traveled by car, your only entertainment options were whatever was on the AM dial. Then in the 1960s, FM grew in popularity and music choices exploded. Next came 8-tracks, cassettes, and CDs. The last decade of the twentieth century saw the emergence of technology that eventually gave birth to Internet radio in the mid-1990s and satellite radio in the early 2000s.
The early 2000s also saw the introduction of portable media players like the iPod. That was soon followed by HD Radio which enables land-based radio stations to transmit both analog and digital signals. Those signals can carry the same or completely different programs while overcoming disruption from buildings and structures and increasing the sound quality. And now today, more and more Internet radio options are popping up, with varying degrees of success.
With all those choices, which format offers the most profitability for automotive aftermarket retailers? It’s not HD Radio, nor is it Internet radio like Pandora, Spotify, or iHeart. And it’s not portable media players—unless you’re planning on selling a LOT of cables. The winner is satellite-based SiriusXM.
What is Satellite Radio?
Satellite radio is a radio service where the signals are transmitted (or retransmitted) by a communications satellite. And there’s no more reliable satellite radio than a SiriusXM.
The SiriusXM Difference
When it comes to automotive audio entertainment, SiriusXM has a huge advantage. As it is satellite-based, there are no hills or distance factors to interfere with radio reception. There are no worries about exceeding data plan limits or hitting cellular dead zones—issues that can put a damper on Internet radio.
With satellite radio, whether traveling in the desert, the mountains, or dense urban areas, users can listen to their favorite channels (over 175 of them!) wherever they travel in the US. That’s 3,717,792 square miles of smooth, seamless, no-drop, coast-to-coast coverage! For boating enthusiasts, SiriusXM has a range of up to 200 miles offshore, unlike terrestrial radio stations that have a limit of 50–100 miles.
And here’s the real kicker—the company has over 32 million subscribers. That’s a whole lot of people! And a good portion of them will want to expand their satellite radio use to as many venues as possible, or at the very least, need accessories.
According to SiriusXM, seventy percent of new cars manufactured now offer SiriusXM already installed! And those car purchases come with free trial subscriptions that can vary anywhere from three months to a year. It would appear satellite radio subscription numbers are going to continue to grow.
How does this all fit into the aftermarket retail experience? Three ways.
- Most major aftermarket head units are SiriusXM ready. This means users still need to purchase the connector and antenna hardware and have it installed in order to start enjoying satellite radio.
- The loyalty of SiriusXM vehicle users translates into usage at home. Or some may want SiriusXM but not want to purchase a new head unit. For these situations, stand-alone/portable units, as well as dock and play kits, are available.
- For those who already own portable SiriusXM units, there are third-party antennas and mounts.
SiriusXM Aftermarket Head Units
Be prepared! Stock up on head units as well as complimentary SiriusXM merchandise, and showcase everything side by side. Post your install fees too. And definitely set up and include a SiriusXM advantages informational display to educate your customers about satellite radio. Pioneer offers a wide variety of head units, and some of their latest head units come ready to connect to SiriusXM.
SiriusXM Head-Unit Connector
Of course, there’s another critical hardware step for purchasers of aftermarket head units in order to bring SiriusXM to life—head unit connectors. Without these, an aftermarket head unit will only remain “ready” and not operational, even if a subscription has been purchased.
The vehicle tuner doesn’t require any special translators or cable adapters. It uses just one interface cable connection for simplified installation and hides behind the dash for an integrated look. So be sure to have a number of these right next to your SiriusXM head-unit display. And if you offer installation, post your install fee. This is NOT a difficult installation, although it does require removing the head unit. Don’t miss out on this obvious service and profit center!
Each generation of tuner offers more and more features. The connector provides satellite radio users some key features often associated with Internet radio. It can pause, rewind and replay up to 60 minutes of live satellite radio, and will automatically start songs from the beginning on designated favorite channels. Your customers can even hear a mix of songs from a favorite channel and get alerts when a favorite song, artist, or team is playing.
SiriusXM Vehicle and Home Kits
Some head units aren’t SiriusXM ready. There are remedies to fix that problem—like Onyx Plus with Vehicle Kit. It enables satellite radio through a vehicle’s existing stereo system. Be sure to display these near the head units! Although these are DYI units, post your install prices as well.
At home, obviously, there’s no head unit. That’s where the Onyx Plus with Home Kit fills the void. These connect to a home stereo, and like their vehicular counterparts, they differ in the special features offered. They are DYI units as well.
Going Mobile
What about customers who want to take their satellite radio anywhere? That’s what the Sirius/SiriusXM Dock and Play units are for—one for home use and one for vehicles. These adapt the Onyx Plus and other models for use in an environment different than the version originally purchased. So vehicle models can be used at home, and home ones in a vehicle, and both in the office or even outdoors! And better yet, only ONE subscription is needed per attached device—different configurations don’t matter.
The Vehicle Kit includes a dock, magnetic antenna, suction cup, and vent mounts, FM extender antenna, and vehicle power adapter. The Home Kit includes a dock, indoor/outdoor antenna, remote, stereo audio cable, home power adapter, and radio dock adapters.
And just as there is a replacement antenna for vehicles, there is also one for home use.
For many people, the interest in satellite radio stems from automotive use. So consider setting up your Home or Dock and Play Kits near your SiriusXM head unit display. That way you can demonstrate how to extend the satellite radio experience beyond a vehicle. And you can keep all the SiriusXM items together in one spot, creating a substantial display presence.
SiriusXM Third-Party Accessories
Another opportunity to increase follow-up sales is accessories. Browning and Tram offer antennas in a number of configurations for either Sirius or both Sirius and XM units. Within those divisions, you’ll find mirror mounts and magnetic/mini magnetic mounts.
Sirius vs. XM vs. SiriusXM
The corporate history of SiriusXM is why you’ll often see various designations. In a nutshell, Sirius and XM merged into one company in 2008. Each used different satellites and frequency bands and offered different packages. For example—Howard Stern and football were on Sirius; Martha Stewart and baseball on XM. And so you’ll still find equipment that runs on the Sirius network—like the Stratus 7 radio and its matching SiriusConnect vehicle tuner, as well as vehicles still equipped with XM only. But in most instances, head units and players today are designated SiriusXM and can receive all the various satellites and bands. Now it’s a simple matter of subscription choice.
Bottom Line
Given the growth and widespread popularity of satellite radio, if you haven’t jumped on the bandwagon, now’s the time. As you can see, there’s plenty of opportunities for retailers to make a profit with SiriusXM.
So get that satellite radio display up, and stock it with head units, portables, Dock and Plays, and accessories. SiriusXM is planning more content and tools, which will grow the already substantial market even further—and petra.com can help you prepare.