XM's newly acquired profile is due not only to their own advertising efforts, but also to the marketing from two of its key investor partners, GM and Honda.
GM in particular, "carried the satellite radio torch in the early years," Patterson said, and continues to follow through by factory installing 1.5 satellite-ready radios in its vehicles in 2005.
Honda has pledged to factory equip 400,000 of its '05 models with XM radios, including its flagship Acura RL, which comes with a 12-month prepaid XM subscription. The RL also comes with a year free subscription to XM's NavTraffic service, an interactive screen that informs drivers of road conditions in 20 American cities.
XM converts approximately 60% of free trial users into paying subscribers, according to Patterson. GM generally offers a 90-day free trial to new vehicle buyers, after which the cost is $9.99 a month.
But once XM acquires a customer, they are apparently gaining lifers. The company currently enjoys a 98.8% renewal rate for subscribers, Patterson said.
The company's rapid entry into consumer consciousness, aided by programming acquisitions such as Major League Baseball and the Bob Edwards Show, will give them an opportunity to shift their advertising focus. Up until now, XM has concentrated on getting out the idea of what satellite radio is to as many people as possible, largely through traditional broadcast marketing.
"We're getting toward a tipping point to where enough people know about what XM is, and we can start talking about the experience," Patterson said. "Another way to market this product is to talk about how people connect with it."
One example of how the man on the street -- or in the car -- connects with the service can be found in this story about a harried commuter who's daily drive was transformed after his wife gave him an XM radio.
For XM to reach its projected 20 million subscribers by the end of the decade -- an even faster growth rate than this year's goal -- the company will continue to rely on the new vehicle market to get that experience in front of as many potential customers as possible.
New agreements with Toyota and Nissan are part of that ongoing strategy. Toyota will begin factory installing XM radios in 2006 model vehicles, while Nissan, which currently offers XM as an option, has agreed to use the company's NavTraffic system in future models.