RSSSirius Continues Run, Outperforms XM
By Ed Oswald | Published July 6, 2006, 3:27 PM
Sirius said Thursday it had added 600,460 customers in the second quarter, up 64 percent from a year ago. The new adds were well above XM's numbers for the quarter; the company added some 398,000 customers, down 39 percent from last year.
The smaller satellite radio provider's impressive numbers continued to indicate the tables may have turned in the nascent market. Although still smaller than XM -- Sirius has 4.68 million customers to XM's 6.89 million -- the company has made up a lot of ground in the past several quarters by consistently posting better numbers.
It also might serve as a validation of Sirius' $500 million gamble on Howard Stern. While the company has had a run of good news, it's been the opposite for XM. The company recently warned that it would not meet its revenue and subscriber goals for the year.
Additionally, XM is also the subject of both an FTC investigation over its marketing practices, as well as an FCC inquiry into the FM transmission capabilities of several of its receivers. In its most recent quarter, the provider also lamented issues with "product availability and overall softness in the retail channel."
Even with the recent bout of bad news, things may turn around for XM soon. Beginning in August, the network will play host to a 24-hour channel programmed by Oprah Winfrey.
The venerable talk show stalwart has been proven to be a great marketer as well: Oprah's book club, has sold millions of books for a number of authors and is frequently highlighted on her popular talk show. XM may be betting on similar treatment after the programming debuts.
The Stern effect that everyone said had faded continues to roll on strong!
I highly doubt that Oprah is going to bring in any subscribers to XM. She'll have as much do to with that channel as Eminem has to do with Shade45.
O&A have proven to be a failure. There's no other reason why they went back to "FreeFM" other than to offer a 2-3 hour commercial for XM. Ain't workin' boys.
The one thing that XM does have going for themselves is their hardware. Generally better than Sirius, but that should hopefully change this summer when Sirius releases true portable players.
Yes, I am a fanboy.
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|I researched the two on my own before deciding to go with Sirius. Better programming. All of the sports that mean anything to me. And give me a break...Oprah woo hoo. By the way, Howard is absolutely amazing on Satellite radio.
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|It's only a matter of time till the FCC sterilizes satellite radio like they did with regular radio and cable TV.
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|Target the large base of trash who watch daytime talk shows. Smart move. They should get Jerry Springer and Judge Judy next.
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|Sirius is just a way better value compared to XM. Stern, BUbba, Ferral, Riley Martin, NASCAR in 07, NFL, NBA, NHL, Martha Stewart Channel, Playboy radio(non-premium), Jay Thomas, and ALL their music channels commercial free. Content is when is comes to radio and Sirius has it in spades.
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|RILEY MARTIN
O-Qua Tangin Wann
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|XM's primary audience does not post here. Also, XM has deeper business to business relationships. Consumer subscriptions is NOT all of their business. I prefer the quality it offers. I do wish NFL was on XM though. Stern? Amusing, yes - but THE content decision for satellite radio? No. I like my quality XM.
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|I agree with headfrog; Sirius's quality sucks. The reception could cut off if you're driving under a bridge or tunnel. That doesn't happen when you're driving with XM. XM needs to make a deal with the NFL. I would really love that. They should just give their NASCAR contract to SIRIUS. I don't want to listen to cars racing while I'm driving. NASCAR is boring anyway, unless you're a gambler.
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|I've got to disagree, i have both Sirius and XM, and in my area it's XM's quality signal that is lacking, i lose the signal all the time, while Sirius is strong.
In my experience, Sirius has better music channels, Xm's got better equipment by far, the MyFi line is way better than anything sirius currently has to offer.
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|I would swap the NFL with MLB on Sirius any day. I have to watch football but would find more value in baseball on the satellite radio.
Sirius is by far the superior product though.
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|Sirius is taking over. Commercial free music, NASCAR soon, and the King of Radio, Howard Stern.
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|Sirius is better. Period. Better playlists, better jocks, better stuff all around. Yes, they have to do something about the damn dropouts and the weak sound coming from their studio. Why does Howard sound so good and the other channels sound like s***e?
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|Wait unti Jan 1 when Sirius gets NASCAR, the subscribers are bound to increase more. And with Stern, it does not appear the new subscriptions are slowing down anytime soon.
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|who care, both businesses are losing money year after year. Don't know if they can last for another 3 to 5 years.
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|XM still has better equipment, better playlists, and Opie & Anthony.
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|I would have to disagree on the playlist parts. I had Sirius, went to XM, and am now back to Sirius. To me it seems XM does not know how to program Music channels. Most of their good ones were programmed by CC, and now those carry commercials. I found Sirius to have better music selection...just my $0.02
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|"XM still has better equipment, better playlists, and Opie & Anthony."
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And another plus is that XM doesn't have Howard Stern.
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|Opie and Anthony HA! They do nothing for XM. XM is so desperate it sold O and A rebroadcast rights to CBS. XM is on its way out. Stern killed XM. I give it 6 months to a year before its bought out by Sirius.
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|You are clearly confused, they simulcast on CBS and XM, CBS is playing a live show every morning in some of the biggest markets in the country. Stern did NOT kill XM they still have over 2 million more subscribers than Sirius RTFA. XM's growth has plained as will Sirius at some point.
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|Yeah, it will PLANE when Sirius takes XM's subscriber base. It will happen.
XM = Betamax in 5 years.
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|Thanks for fixing my grammar... Do you base your assumption that Sirius will take over XM on anything other than the fact that you have it therefor you like it better?
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|Other than the fact that some of the XM execs have resigned in the past 6 months because they are not meeting stockholder committments, not really. I like Sirius. I just bought a new car that had XM included with the sale yesterday. I listened to it for over an 3 hours as I drove my new car around. I understand it was the weekend so the best programming wasn't available so I will give way to that. And quite honestly, there isn't any noticeable differences for me with either satellite company other than the exclusive content that is provided on Sirius.
I listen and like Stern. I have little interest in the NFL. I would like to see MLB show up on Sirius in the future but that would require things to change with XM. I understand that XM has had some legal problems as late as a result of something to do with their transmitting equipment and I believe I heard they were having some other problems but don't recall exactly what they were.
To my knowledge, these are problems that Sirius hasn't had or is perceived to experience in the future. Mel Karmazin isn't likely to let Sirius fall through the cracks and fail the same way that Hugh Panero has let thing fall through cracks and begin to fail.
I really hope that XM has some success for personal reasons because competition breeds innovation and that is exactly what satellite radio is.
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|Oh great, Sirius gets Stern and we (XM listeners) get Oprah.
I must admit that XM has been sliding the past couple of years.
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|Long live Oprah! {{long slow bow}}
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|Oprah having a show on XM has just earned Sirius a future sale from me. I live in Chicago and I know what this beyotch has done to women's attitudes all too well.
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|What, they don't cook, keep house, & ignore men going out on the town for as long as they want?
The nerve of those bia***es-- wanting equality & a life of their own!!!
btw both these sat providers will survive into the future, neither will fail.
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|We speak your names!
I have never tried XM, but I have had Sirius for about 1.5 years now and love it!
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|You can transpose the roles you just described and you get the epitome of what Oprah stands for. Never was about equality, it's about feminists' goal of social and cultural domination. I'm the biznitch, along with hundreds of thousands of men in this metro area, and we cowtow to the trixies and middle-aged uglies here who refuse to use makeup and diet! I guess it benefits you based on what you wrote so no skin off your back.
Don't both services have channels that play commercials? It's almost as bad as paying for TV that allows commercial time - oh wait, it's already happening!
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|The pendulum sometimes swings too far the opposite way during corrections...but it's necessary overall. During my mother's time women were nothing more than patronized kowtowing doormats & glorified maids-- and to finish grinding the heel in, men passed all the laws that governed their lives.
I mean, put yourself in their place.
You're right re satellite, just like cable tv.
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