SiriusXM has unveiled a new program that allows partner car dealerships to offer customers a three-year subscription to the satellite and streaming radio service.
The Extended Service Subscription program tacks on the cost of SiriusXM radio to the purchase or lease price of a car at the dealership, the company said in a statement this week, announcing Toyota and Lexus as its inaugural partners for the service.
“Toyota and Lexus have offered SiriusXM capability as a standard feature for several years, and we’re thrilled to expand upon our longstanding relationship by enabling their dealerships nationwide to participate in our new three-year Extended Service Subscription program,” said Gail Berger, the Senior Vice President and General Manager of Automotive Partnerships at SiriusXM. “This new subscription offering is rolling out to auto brands across the country and allows drivers to enjoy long-term access to SiriusXM’s complete lineup of music, sports, news, and entertainment audio programming.”
The cost of the three-year subscription was not revealed in the announcement this week. However, Toyota and Lexus rival General Motors (GM) is also participating in the Extended Service Subscription program, and GM dealers have been told the retail price of the subscription is $300 for the SiriusXM All Access package, according to people familiar with the initiative. The All Access package allows radio listeners to use SiriusXM hardware radios as well as the SiriusXM app; the $300 price is a substantial discount from SiriusXM’s monthly retail cost, which is $25 per month plus taxes and fees for the All Access package.
Even if customers don’t purchase the Extended Service Subscription, new vehicles sold with a SiriusXM tuner will still include a 90-day free trial of the radio service.
Related: Get three months of SiriusXM streaming radio for $1
The Extended Service Subscription program comes at a time when SiriusXM is looking to increase its customer base, whether they pay for the service or not. Over the past few years, the radio service’s paid subscriber count has largely flat-lined between 33 million and 34 million customers, which includes some listeners on discounted plans.
In addition to redesigning its streaming app with more-personalized content recommendations, SiriusXM recently announced a plan to offer a free tier of service that allows users of its SiriusXM 360L platform to access music and talk programming that includes advertisements. Both strategies afford SiriusXM multiple opportunities to reach cost-conscious radio listeners who may like the programming they hear on SiriusXM, but who may not want to shell out $25 per month for hundreds of satellite radio channels.
