Sirius XM Offers New Telematics Services

By Robbie Pleasant May 03, 2013

Sirius XM Radio is now offering more than just music and news. The company has begun investing in telematics, providing not only automated car security, but also safety services such as stolen vehicle tracking and roadside assistance.

This will add on to the services that Sirius XM currently offers, which cover entertainment services like radio. It will also begin offering other helpful “infotainment” services for drivers, including weather updates and gas prices. This is will help the company to build its relationship with carmakers, although currently it has only signed a deal with Nissan. It is, however, looking for more carmakers that would be interested in the service, so more may be added soon.

The auto audio and infotainment industry is valued around $15 billion a year, while information controls is a $12 billion a year business. Of course, the new Sirius XM services will require additional fees for customers, but given the additional security and support, it may very well be worth the added expenses.

Onboard assistance is sought after by many drivers, who use services such as OnStar to protect themselves and their cars in case of accident or theft. With the addition of these services to Sirius, it may appeal to many more drivers who would otherwise opt to pass on the XM satellite radio alone.

While it will take a while before these services are added to commercially available cars, there is likely to be a demand for them once they become more readily available. It may depend on the price, but by offering XM radio, infotainment and telematics features, Sirius will become more than just an expensive alternative to AM/FM radio. Once Nissan rolls out the new models that use Sirius XM’s services, we shall see how demand for cars with similar features changes.

Edited by Alisen Downey

IoTevolutionworld Contributor

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