During a Q&A with investors this week, Sirius Satellite Radio Executive VP/CFO David Frear said he’s encouraged by XM’s conversion rate. Frear added, “There are roughly 11-million satellite radio subscriptions in the country which is about five percent penetration of the core target which is the car universe.
“When you consider the fact that at most of XM’s OEM partners, the build rate is about in 35% of the production and they’re converting 54%. That’s saying that 20% of the people that are going to dealers every day want satellite radio in their cars. So when you look at that in comparison to the five percent overall penetration now, you’ve got to take that as an incredibly bullish sign for satellite radio.”
