Sirius projects strong sat radio growth
Looks like the the bloom hasn’t faded for satellite radio after all.
After a less-than-ethusiastic report from XM Satellite Radio last week, rival Sirius Satellite Radio is revising its revenue and subscription projections for year-end upwards.
XM revised its growth estimates downward last week, saying that instead of 8.5 million to 9 million customers the company had been predicting by year’s end, it now expects between 7.7 million and 8.2 million.
But in a report issued today, Sirius says it ended the second quarter with 4,678,207 subscribers, 158% higher than second quarter 2005 ending subscribers of 1,814,626. During the second quarter of 2006, SIRIUS added 600,460 net subscribers, a 64% increase over second quarter 2005 net subscriber additions of 365,931. For the third consecutive quarter, SIRIUS led the satellite radio industry in net subscriber additions, capturing a record 60% share of industry net additions in the second quarter.
All that led the company to predict that it will have 6.3 million subscribers at year-end, increased from previous projections of over 6.2 million
If Sirius and XM are correct, that will put the total satellite radio subscriber base between the two services to somewhere around 14 million subscribers.
I wonder how long terrestrial radio programmers will continue to pretend that they don’t have a serious erosion problem.
August 1st, 2006 at 7:14 pm
For his sake I hope Howard Stern cashed that check.
August 2nd, 2006 at 8:37 am
Well Mike, it looks like you took your posters advice from your original story !
Sirius satellites meteoric rise is due directley to Howard Stern…whether you approve of him or not. You can’t ignore the fact, as you attempted to do in your first story, and still be considered objective.
August 2nd, 2006 at 9:56 am
Thanks for acknowledging the “other” satellite company, Mike. I predict that Sirius will either absorb, or eliminate XM within the next 5 years.
Once XM started advertising on their music channels, it makes you reconsider the value of subscribing to their product.
August 2nd, 2006 at 11:03 am
I think Satellite radio will have a very difficult time once HD radio builds momentum. There’s a lot to be said for “FREE”. Then when HD changes over completely digital and offers surround sound over the air satellite radio will be dead.
August 2nd, 2006 at 11:20 am
Guys… Mike didn’t ignore anything… his XM story was reporting on their financial reports issued last week…. his Sirius story followed this week as they reporterd theirs…
You guys are like Linux nerds seeing conspiracies against your favored platform where here are none!
Lighten up.
August 2nd, 2006 at 1:03 pm
As a sirius subscriber, I love my satillite radio and hate to listen to terrestial stations!! The lack of commercials, FCC censorship, and the fact that I can listen from here to Florida is probably the greatest thing. The money I spend now is far less than I would on CD’s and downloads in a year. There really is something for everyone.
August 3rd, 2006 at 5:53 am
I guess I am in the minority. I have been listening to Sirius radio (very little at this moment) gratis for 6 months with the purchase of a new Ford truck. I can’t wait for the subscription to run out. Mr. Wendland must check how membership is counted since a lot of Ford trucks on the lot carried a 6 month trial subscription. So don’t count me! I’d rather listen to CBC stereo or NPR(91.7) Boycott WDET for changing to an ‘All Talk’ programming schedule.
August 3rd, 2006 at 8:01 am
“Can’t wait for the subscription to run out”?!?!?!?!
That’s a little over the top isn’t it? You are anxious for something free to be taken away. People really do say anything.
August 3rd, 2006 at 8:01 am
“Can’t wait for the subscription to run out”?!?!?!?!
That’s a little over the top isn’t it? You are anxious for something free to be taken away. People really do say anything.
August 3rd, 2006 at 9:53 am
I think HD radio will be a flop. Why are people going to run out and get a new radio for their cars so they can hear commercials in surround sound? How many people actually bought HD tuners for their TV’s? If I didn’t get HD through cable I probably wouldn’t have spent the several hundred dollars for a HD tuner. With Mr. Johnston’s comments, I also can’t understand waiting for the subscription to run out. Just turn it off if you don’t like it. As for how the membership is counted, I’m sure XM is counting a lot more free subscriptions than Sirius as they have more automotive contracts.
August 5th, 2006 at 7:30 am
HD radio will, soon enough, be offer in every new car and broadcast companies will offer services that will be enjoyed. Better yet, they will be free. I only listen to satellite because there is not a classic rock radio station in my market. That will change when the number os swignals are doubled, or tripled, by HD integration. With HD and an iPod hookup, which my new vehicle has, why would I pay for satellite?
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