Sirius OEM Penetration Continues to Expand

Dec.23.10 | About: Sirius XM (SIRI)

By Demian Russian

Sirius XM (NASDAQ:<a href='http://seekingalpha.com/symbol/SIRI' title='Sirius XM Holdings Inc.'>SIRI</a>) Satellite Radio penetration rate

Sirius XM Radio’s (NASDAQ:SIRI) OEM penetration continues to grow. The Satellite Radio service provider had already announced during their Q3 results that the company’s OEM penetration rate had increased +700 bp to reach 61% for the first three quarters of 2010, compared to 54% in 2009. Sirius XM announced Wednesday that Satellite Radio will be available as standard equipment in both new model 2011 MINI vehicles and in model year 2011 BMW radio-equipped R 1200 RT, K 1600 GT, and K 1600 GTL Touring Motorcycles. All MINI and BMW factory-equipped Satellite Radios will include an introductory one-year promotional trial. With Sirius XM’s conversion rate continuing to improve as well, approaching close to 50%, this expanding OEM penetration insures continued growth in the company’s total subscriber base.

All new Model Year 2011 MINI Hardtop, Convertible, Clubman and Countryman vehicles will include a factory-equipped satellite radio and a one-year introductory subscription.

We are very excited to offer Sirius as standard equipment on 2011 MINI vehicles, as it ensures that every MINI includes a well-rounded selection of in-car entertainment options. Sirius is fully integrated into all three of the MINI infotainment options, and allows MINI owners to further personalize their MINI driving experience at the push of a button.

– Jim McDowell, Vice President, MINI USA

MINI drivers appreciate efficient performance and value, and now all new MINI owners will be able to enjoy Sirius with its broad range of diverse content. By including a one-year introductory subscription, MINI drivers can enjoy the best in-vehicle audio entertainment beginning with the first time they start-up their new vehicles.

– Steve Cook, Group Vice President and General Manager, Automotive Division, Sirius XM Radio

All BMW new model year 2011 R 1200 RT, K 1600 GT, and K 1600 GTL Touring Motorcycles will include a factory-equipped satellite radio and a one-year introductory subscription.

BMW Motorcycle owners expect exceptional performance and our customers seek out the best riding experiences. Audio entertainment is one of the pleasures of riding a Touring Motorcycle, and we are very excited to have Sirius become standard equipment on our new Touring Motorcycles, providing the perfect soundtrack for the perfect ride.

– Pieter de Waal, Vice President, BMW Motorcycles

BMW Motorcycle sets the standard for high performance and style, and now their customers are able to enjoy the premium audio entertainment experience of Sirius. We are thrilled to provide BMW Motorcycle customers with more than 135 channels of unique, fun, and memorable programming to experience the excitement of the open road.

– Steve Cook, Group Vice President and General Manager, Automotive Division, Sirius XM Radio

Disclosure: Long SIRI