By Amy Gilroy
Within five years, about 50 percent of all new car radios in North America will feature downloadable apps. But consumers are not yet sold on the feature, according to IMS Research (IHS, Inc, NYSE:IHS).
Already every major car maker in North America either offers an app radio system or is developing one. But only 34 percent of consumers would pay for apps in the car, an IMS survey found. ”This represents a large disconnect between the number of systems in the market and the number of people willing to pay to download content,” it said in a news release.
Apps are the way car companies stop the cycle of users replacing their radios, noted IMS, but the strategy may backfire. Read More
By Amy Gilroy
Best Buy Co., Inc. (NYSE:BBY) woes continued during Q2 as profits fell 91 percent and same store sales declined slightly.
The retail giant also lowered expectations for industrywide sales, said The Wall Street Journal.
Same store sales fell 1.6 percent in the U.S. or 3.2% globally during the quarter ended August 4.
The square footage of U.S. stores was reduced by 4 percent compared to last year. Read More
By Tom Taylor
The following article comes from Tom Taylor’s newsletter, Taylor on Radio-Info.
Mel Karmazin warms up to running Sirius XM (NASDAQ:SIRI) for somebody else.
The CEO walks back his earlier remarks about not wanting to be a #2 executive, and hints that he’s willing to stay if Liberty Media Corporation (NASDAQ:LMCA) takes control. John Malone-led Liberty helped Sirius XM stay independent in early 2009 when it was facing a debt crunch. But it’s like a Grimm’s fairy tale – the rescuer wants his due, years later, when things are good and the people in the kingdom are happy and prosperous. Liberty has been paying hundreds of millions to buy stock and build its ownership stake, and now holds about 46% of Sirius XM. It’s asked the FCC on two different occasions to recognize that it has “de facto control,” a claim that Sirius XM has resisted. But relations are thawing – which might suggest Liberty really is going to take over. As for Mel’s own contract situation – his deal’s up in December, but he’s working with the board on the next step. Investors generally liked what they heard yesterday. The “SIRI” stock gained almost 5%, up a dime to close at $2.30. Its 52-week high is $2.41. Read More
By Amy Gilroy
Sirius XM Radio (NASDAQ:SIRI) launched Tuesday an On Demand radio service that lets you call up Sirius XM shows at will for users of Apple iPhone, iPad, iPod Touch devices and eventually users of Android devices.
If you download the SiriusXM media player on these gadgets and you are a SiriusXM Internet subscriber, you get free access to over 200 shows, representing over 2,000 hours of programming.
Additionally, the satellite radio company confirmed it is on track to release a Pandora-like personalized radio service to create your own SiriusXM music channels this year. Read More
- Subscribers Grow by 622,000 to a Record 22.9 Million
- Record Revenue of $838 Million, Up 13%
- Net Income of $3.1 Billion Includes a $3.0 Billion Income Tax Benefit
- Adjusted EBITDA Grows 28% to a Record $237 Million
- Free Cash Flow Grows 39% to a Record $230 Million
- Company Raises 2012 Adjusted EBITDA Guidance to Approximately $900 Million
NEW YORK, Aug. 7, 2012 – Sirius XM Radio (NASDAQ:SIRI) today announced second quarter 2012 financial and operating results, including revenue of $838 million, up 13% over second quarter 2011 revenue of $744 million. Net income for the second quarter 2012 and 2011 was $3.1 billion and $173 million, respectively. Adjusted EBITDA for the second quarter of 2012 was $237 million, up 28% from $185 million in the second quarter of 2011. Read More
By Amy Gilroy
Why does Best Buy (NYSE:BBY) market smartphones in the front of the store?
Doesn’t classic merchandising tell you to put the milk and eggs in the back of the convenience store so customers have to walk by the other goodies first?
A blog by Strategy Analytics analyst Roget Lanctot has a suggestion. Put smartphones and tablets in the back. And, since the car has become a 4-wheel smartphone accessory, place the car audio department somewhere nearby, mid-store. We think that’s a great idea.
While we don’t agree with everything stated in the blog, Lanctot makes some interesting points:
First. Best Buy, now competes with Apple Stores (not just Walmart and Amazon). Apple Stores are starting to merchandise car integration products for smartphones. Suddenly products like the Escort SmartRadar are appearing behind the shiny glass doors at Apple and we know there are other suppliers clamoring for a spot on the Apple slat wall. Read More
By Demian Russian
Sirius XM Radio (NASDAQ:SIRI) announced this morning that the company added 622,042 net new subscribers in the second quarter of 2012, a 38% year-over-year improvement over the 452,147 net new subscribers that were added in Q2 of last year. Sirius XM Radio has now added over 1 million net new subscribers in the first half of this year, and as of June 30th, 2012, has over 22.9 million total subscribers.
SiriusXM continues to demonstrate robust growth and strong operating execution despite a challenging economy. Our second quarter subscriber gains mark a record quarter of net additions since the merger of Sirius and XM in July 2008. While we continue to be conservative in the face of a weak US economic outlook, customers continue to embrace our unparalleled programming lineup, allowing us to raise subscriber guidance for the second time this year.
– Mel Karmazin, Chief Executive Officer, SiriusXM Radio
Sirius XM Radio management also announced an increase to its full-year 2012 net new subscriber and revenue guidance. Sirius XM is now forecasting its full-year 2012 net new subscriber growth to “approach 1.6 million” and for revenue to “approach $3.4 billion.” Management reiterated full-year 2012 Free Cash Flow guidance of $700 million and Adjusted EBITDA guidance of $875 million. Sirius XM management began the year with full-year 2012 net new subscriber guidance of 1.3 million and then raised that number to 1.5 million, while leaving other metrics unchanged, when the company released its 2012 Q1 results on May 1st. Read More