
The fourth quarter for Satellite Radio sales for the two leaders, XM Satellite (XMSR) and Sirius (SIRI), has been a tough one as sales have dropped off by around 20%, according to Bank of America radio analyst Jonathan Jacoby. He added that demand for satellite radio is shows that it is slowing based upon third quarter results.
With the downturn in sales coming earlier than expected, it looks like it's possible
that the two companies won't meet subscriber signup goals.
Both companies pretty much go up and down in unison with one another, reflecting the overall market.
The one good sign for them both is that they are starting to post smaller losses than previous quarters. Last years third quarter Sirius lost $180.4 million, while this quarter it went down some to $162.9 million. XM on the other hand had their third quarter loss down to $83.8 million, compared to last years' $131.9 million.
Most analysts think that growth will have to come from two areas. One would be from new car sales where buyers are offered free service for several months. XM says that they keep 52% of those that sign up.The second means of growth should come from offering satellite radio free, with ad support. It looks like the business is already reaching the majority of early adopters and will have to come up with new ways to find growth. It's estimated that by 2010 they'll reach critical mass and will really face challenges at that point.








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