NEW YORK (Reuters) - Sirius XM Radio Inc Chief Executive Jim Meyer sees an opportunity to enter international markets with Internet-based products, a business that could provide a new revenue stream to the company, which is mainly focused on the United States.
When asked at the Goldman Sachs Communacopia conference on Thursday about incremental growth opportunities, Meyer said the company is exploring international markets, including Mexico.
Speaking on a webcast, Meyer said the board of directors regularly asks him, “Gee, when are you going to go international?”.
Meyer, who took the reins of the company late last year, is looking to branch out Sirius XM’s offerings beyond music and talk radio to other services in cars. He spearheaded Sirius XM’s first large scale acquisition in August, when Sirius XM spent $530 million on acquiring the connected car services unit of Agero. That deal is expected to close in the fourth quarter.
Meyer said on Thursday that automakers are expanding their connected car systems globally, which is why Sirius XM now has the chance to enter new countries.
“One of the reasons why it’s key that we participate in that rollout and building of that architecture is that it’s going to give us opportunities to look at services on an international basis that are different than we’ve done here in the U.S.,” Meyer said.
The services Sirius XM will offer internationally will likely be Internet and streaming based and not involve launching new satellites for those countries or offering satellite radio, he said.
Sirius XM is looking at Mexico but Meyer said it has no plans to announce anything yet.
Sirius XM has a 37.9 percent equity stake in satellite radio provider Sirius XM Canada.
John Malone, the chairman of Liberty Media, the company that controls Sirius XM, has previously said that Sirius XM should look at “globalizing.”
Sirius XM shares rose 1.3 percent or 5 cents to $3.88 per share in early trading on Thursday.
Reporting by Liana B. Baker; Editing by Chizu Nomiyama