Satellite radio hits landmarks

The new magic number for satellite radio is 5 million, with the leading manufacturer of satellite receivers reporting sales of that many units around the same time total subscriber numbers surpassed that mark.

Delphi, which makes auto and home receivers for both XM Satellite Radio and competitor Sirius Satellite Radio, announced on Tuesday that it has sold 5 million receivers to retail customers and automakers. Delphi sells a variety of receivers for home and automotive use and has contracts with General Motors, Ford, DaimlerChrysler, Audi, Volkswagen and others to make receivers for factory installation in new cars.

Delphi delivered the first portable receiver for satellite radio, the XM MyFi, and has squeezed satellite service into a number of other novel forms.

The Delphi announcement came shortly after XM announced that it signed up 540,000 new subscribers in the first calendar quarter of 2005, pushing its total subscriber base to nearly 3.8 million. Sirius mostly recently reported total subscribers at more than 1.2 million, bringing the total to more than 5 million.

XM and competitor Sirius emerged on the market about three years ago with similar technologies and business plans. Both charge a monthly fee of $13 to let subscribers access dozens of channels of audio programming beamed directly by satellite to special receivers in cars and home stereo systems.

The services have competed briskly on a number of fronts, from signing up high-profile talents such as Howard Stern to recruiting automakers and inking exclusive sports programming deals.

Both services racked up huge launch costs to put satellites into orbit, build broadcast facilities and hire on-air talent. Analysts estimate that XM needs to reach 4.5 million subscribers to turn an operating profit, while Sirius needs 3.4 million subscribers to move into the black.

[vox365]

Let's Not Fool Ourselves---

Let's not fool ourselves about Satellite Radio. Receivers sold (units) and new subscribers signed on do not equate to long-term success. Retention vs churn is the critical factor along side of that satellite killer, the INTERNET - which is poised to do everything Satellite radio is/can do, and a whole lot more for a whole lot less expense to the consumer.

When Sat Radio started it was a wonderful idea whose time had come. But now? it's just a cumbersome money pit that pays huge sums for operations, talent and continuity. It can only survive by allocating it's assets towards the Internet.... but then it won't need all those satellites, studios, and humongous overhead will it? And let's not forget the advertizer support for that "supplemental" income. They are already heading for the Internet.

No shelf life here. Hellooooooo!!!! Is anybody listening????

[ddmine45]

But what about in cars?

Yes, the Internet will be another player in the music arena. But what about being away from home? XM (and Sirius) radio's biggest dent is in the automobile market. It's the place where most people listen to music. I can really see sat radio take off even more than it has because of the blandness of terrestrial radio.

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Let's Not Be Fooled...

...by Bob and his laughable comments. Bob is telling us to listen to Internet radio IN THE CAR, OUT ON THE STREET, IN THE GYM, and ON THE PLANE? Satellite radios are capable of playing its contents everywhere, please check out Delphi MyFi and you will know what I mean......oh, I forget you don't even OWN a satellite radio :)

And as of AM/FM, THEY SUCKS.