Things are looking good for satellite radio provider SiriusXM according to the 2014 report given by the company on February 4. The company now has a record-high 27.3 million subscribers, which led to a 10 percent revenue increase during 2014, totaling $4.18 billion, while net income rose 31 percent to $493 million and free cash flow rose 25 percent to $1.16 billion, according to Billboard.
And yes, stockholders such as Carl Icahn are seeing the benefits of the company's profitability. SiriusXM repurchased $2.5 billion worth of its stock over the year.
The company made no qualms about the fact that much of its success lay in the success of the automobile industry. As Tom Silverman, founder of the New Music Seminar, told Music Times when we spoke with him during 2014, SiriusXM benefitted from offering free trials in new vehicles sold, finding that those who used the free trial were more likely to pursue a longer term subscription after three months. The rise of automobile sales during 2014, continuing to climb after the United States emerged from the recession, reached 5.9 percent during 2014 and brought Sirius sales with it. Following that logic, Sirius might also be out to a hot start during 2015 as low gas prices have further encouraged automobile purchases.
Jim Meyer, CEO of SiriusXM, also stated that the future would include work on new apps for both iOS and Android devices, citing that previous versions didn't live up to the standards of the company. Indeed, apps are another key component in the future of the music industry. Silverman discussed how as smartphone technology branches deeper into new, huge markets such as India, free trials of services such as Spotify could bring in huge new audiences to the music industry.
The SiriusXM report did skip on less pleasant developments however, such as the potentially disastrous Turtles lawsuit.
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