Audiovox to become principle Satellite Radio supplier

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Wolf

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Oct 11, 2008
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I saw this on orbitcast.com

Audiovox to become principle Satellite Radio supplier

Audiovox just announced that it reached an initial agreement with Sirius XM Radio Inc. to become the principal supplier of Sirius satellite radio products to aftermarket retailers.

Combined with its already existing agreement with XM, this effectively makes Audiovox the main retail supplier of satellite radios in North America.
The agreement is still subject to a final distribution agreement where Audiovox will provide warehousing, distribution, logistics and related services for both Sirius and XM products.

But when you combine this new agreement with the existing Master License Agreement for XM products that the two signed in 2005, and this move effectively makes Audiovox the principle supplier across the board. Now we know why Directed and Sirius parted ways (though, that was predicted to happen long before).

Audiovox's President and CEO, Patrick Lavelle, called this "yet another major milestone" for the company, adding that it "further strengthens our leading position in the satellite radio category."

"Despite the current economic climate, satellite radio is still growing and we believe it will continue to be a prominent form of consumer entertainment," Lavelle continued. "With this agreement, we expect our satellite radio sales to more than double next year with limited exposure."

Now that last statement at first blush might pique a lot of interest for many - but read it carefully. Lavelle is expecting Audiovox's own satellite radio to "more than double" - not satellite radio as a whole. By adding Sirius products to their distribution roster, that's not too far of a goal to try to accomplish. Still, it's definitely great news for Audiovox.
 
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