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SiriusXM CEO Sees Capacity Constraints Mitigated by Connected-Car System, as He Reviews Pandora

“Capacity constraints inherent” to SiriusXM’s satellite system “will fall away” with deployment of the 360L connected-car platform with “a major automaker" to be announced at January's CES, CEO Jim Meyer said on a Wednesday earnings call. “With a better, more…

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adaptable user interface, we will drive new functionality, such as time-shifting content on demand, personalizing music stations, and improving the display and accessibility of our sports content.” Embedded two-way connectivity of future cars "will enable us to understand user behavior in 360L cars and, over time, develop sophisticated recommendation engines to aid discovery across our deep line of content," he said. The company’s biggest challenge in contacting would-be paid subscribers is “breaking through the clutter, highlighting our exceptional content and easy-to-use service, and speaking directly to our trial customers," and improved “data analytics” through 360L deployment “will greatly benefit these marketing efforts," Meyer said. SiriusXM soon will begin beta-testing a new version of its Android and iOS apps and it “will be rolled out fully in 2018,” offering subscribers “a new way to personalize our music stations,” he said. Having recently closed on the final phase of its $480 million “strategic investment” buy of 19 percent of Pandora (see 1709210035), “eventually, there will be areas where it makes sense for SiriusXM and Pandora to work together,” he said. “We will take our time getting to know their business and thoughtfully considering these options.” Meyer and Chief Financial Officer David Frear “are spending a prudent amount of time understanding how things work” at Pandora, mostly on the streaming service’s “advertising side,” just “understanding how their model works and what the various levers are,” Meyer said in Q&A.