SiriusXM ‘on Track’ to Launch ‘360L’ Platform in Early 2018 With ‘Major’ OEM

SiriusXM is “on track” to launch its “360L” connected-car platform with a “major automaker” in early 2018, said CEO Jim Meyer on a Thursday earnings call. SiriusXM expects “to reveal the final product with this OEM” at January CES, he said. The company sees 360L as “a game-changer for us,” he said. “It gives us data on customer usage,” and allows the company “more control” of a “much-improved” user interface, he said. Features include one that “enables personalized content recommendations, and gives us the ability to convert and upsell customers on-screen directly in the vehicle,” he said. On the company's impending $480 million investment in Pandora (see 1706090005), Meyer underscored Pandora’s “permanent free offering” in contrast to SiriusXM’s trials and discount offerings. “If you don't want to pay for our service, we don't have a place for you,” and that’s what Pandora brings to SiriusXM, he said. But he moderated his stance on entering the free radio market, saying, “the jury is still out” on whether the Pandora ad-based offering can deliver cash flow. The investment in Pandora “will help us find an answer and give us a great toehold in this area on advantageous terms,” he said. Through Pandora, SiriusXM will learn more about the subscription interactive business “and how our two companies might work together in the future, be it on upselling, cross-selling, sharing content, or sharing technology,” Meyer said. Cautioning on pending government approval and a minority investor role, he said the investment “is not predicated on any kind of cooperation or synergies.” More information will be available after the agreement closes later this year, he said. Also, Meyer said, SiriusXM is working with OEMs on new “consumer-focused features” that add value to a vehicle subscription, including Alexa integration. “Think, 'Alexa start my car and turn on the air conditioning,'” he said.