Sirius XM Raises the Bar
Sirius XM Radio (NAS: SIRI) is ready for a thicker slice of your dashboard.
The satellite radio giant announced a partnership with Nissan (NAS: NSANY) where Sirius XM will provide the automaker with a suite of premium telematics services.
Sirius XM's foray into telematics will mean that new Nissan cars will offer things including 24/7 emergency support for accidents, stolen vehicle tracking, and roadside assistance. Pricing wasn't disclosed, but General Motors (NYS: GM) charges $18.95 a month for its basic OnStar telematics package.
Naturally, we live in a new age of information as a result of the smartphone revolution. Ford (NYS: F) offers smartphone owners access to some telematics services for free through its Sync and enhanced MyFord Touch platforms. From vehicle health reports to dialing up 911 when an airbag is deployed, it remains to be seen what drivers are willing to pay for these days.
This is still a smart move by Sirius XM.
"Looking ahead, SiriusXM has the ability to combine satellite and cellular networks to expand coverage beyond traditional cellular-based telematics services," reads the press release, pointing to a future where Sirius XM will be able to leverage the functionality of its costly satellites.
In the end, it's just another brilliant way for Sirius XM to pump up the average revenue per user.
Running of the bulls
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The article Sirius XM Raises the Bar originally appeared on Fool.com.The Motley Fool owns shares of Ford Motor. Motley Fool newsletter services have recommended buying shares of General Motors and Ford Motor. Motley Fool newsletter services have also recommended creating a synthetic long position in Ford Motor. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for Ford. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.