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To boost business in these tough times, Ford Motor Company is now offering used-car customers a little lagniappe: a trial subscription to SIRIUS XM radio's "SIRIUS Everything" package. The service's 130+ channels of music, talk, and news ordinarily cost $12.95 per month, but they'll now be available free of charge for six months to anyone who purchases a Certified Pre-owned Ford, Lincoln, or Mercury vehicle. This matches the SIRIUS XM trial offer that Ford has provided to new-car buyers for some time.
While this seems like a good offer at the moment and one that may win over on-the-fence shoppers, it does raise the question of SIRIUS XM's profitability and, more importantly, its future. Here's the problem: within a few years, in-car internet is likely to be a standard feature on most new automobiles. Whether the service is provided by pre-installed wi-fi routers or via wireless broadband subscriptions (like the kind currently available from most mobile phone companies), drivers will have access to a full range of websites -- including a nearly endless array of internet radio streams. In fact, at this year's Consumer Electronics Show, Ford already demoed an upgraded version of its Sync telematics system, which included a stunning app for internet radio site Pandora.
So the question is: when car owners are already paying for in-car internet service, how many will be willing to pay an additional fee for SIRIUS XM radio? Granted, the company offers some exclusive content (Howard Stern being a notable example), but will that be enough to maintain customers' interest?
The answer to that question doesn't matter much for Ford, which, thanks to Sync, can provide an abundance of entertainment options for buyers. But for SIRIUS XM, it's a very different story.
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Certified Pre-owned Vehicles equipped with SIRIUS to now include a three-month trial subscription to the "SIRIUS Everything" package
NEW YORK, Feb. 4 /PRNewswire-FirstCall/ -- SIRIUS XM Radio (Nasdaq: SIRI) and Ford Motor Company today announced that Ford and Lincoln Mercury customers across the United States will receive an introductory three-month trial subscription of the "SIRIUS Everything" package upon the purchase of all SIRIUS-equipped Ford and Lincoln Mercury Certified Pre-owned vehicles.
The "SIRIUS Everything" package delivers more than 130 channels of premier sports, news, talk, entertainment and commercial-free music programming plus traffic and weather information.
"Ford and Lincoln Mercury drivers have embraced satellite radio, a feature delivering a diversity of entertainment and offering listeners an incredible breadth of programming," said Doug VanDagens, Director of Ford's Connected Services Solutions Organization. "We are pleased to include this introductory trial of SIRIUS in certified pre-owned Ford and Lincoln Mercury vehicles, making for an even more enjoyable experience for our customers."
"We are thrilled Ford is introducing a three-month trial of the 'SIRIUS Everything' package to its customers," said Steve Cook, Group Vice President and General Manager, Automotive Division, SIRIUS XM Radio. "We look forward to continuing to provide the best in audio entertainment seamlessly delivered with a push of a button to drivers of certified pre-owned Ford and Lincoln Mercury vehicles."
Ford will continue to offer SIRIUS as a factory-installed feature with a 6-month subscription of SIRIUS included on most new Ford and Lincoln Mercury vehicles sold in the United States.
For more information on SIRIUS, please visit www.sirius.com.