SiriusXM CEO Touts Video Upside, But Won't "Get Into the Television Business"

Howard Stern, a Video Star? SiriusXM Hopes So - Photo Illustration -H 2018
Getty Images/iStockphoto; L. Busacca/WireImage for Sirius Satellite Radio

Jim Meyer also discussed his appetite for potential further acquisitions at the annual Goldman Sachs Communacopia Conference in New York.

Audio entertainment giant SiriusXM, the home of Howard Stern, sees growth upside for its emerging video business, but won't turn into a film or TV company, CEO Jim Meyer told an investor conference on Tuesday.

Appearing at the annual Goldman Sachs Communacopia Conference in New York in a session that was webcast, the exec said Stern was "really excited" about the video offerings. "I don't know what the step is, that's what he gets paid to do. He is a genius, and he will figure out, I know, some exciting stuff in that area. You guys should expect more and more video to roll out now over the remainder of the year."

Meyer emphasized, however, that SiriusXM is "not going to get into the television business or the movie business. That's not what we do. Our video will be all about enhancing the audio experience" and boost user engagement.

"We have done really well with video," the SiriusXM CEO also told investors. "Video advertising is a much higher monetization than some of the other ads."

Sirius, controlled by John Malone's Liberty Media, closed its $3.5 billion acquisition of music streaming service Pandora Music on Feb. 1. Meyer on Tuesday once again lauded the success of the deal, saying that cost savings have come in ahead of expectations, and he highlighted that Pandora has turned positive in terms of earnings before interest, taxes, depreciation and amortization. The exec also cited the addition of content to Pandora and continued cross-promotion of the Pandora and SiriusXM services as further opportunities for the company.

Asked about possible further acquisitions, Meyer signaled no major deals are on his mind. "We’re not a conglomerate. We’re not built to run a conglomerate," he told the conference. "We’re in the audio entertainment space. We have found opportunities that are tangential to that, like the connected vehicle space, where we get one plus one equaling more than two."

Content, marketing and product development are the focus of the company's capital spending. In terms of possible acquisitions, "we look at everything," Meyer added. "I am not afraid of any of them. They just got to meet the board's pretty strict criteria." Concluded the CEO: "Today, I don’t see anything right there that is substantial."