Sirius Sees Growth, Pandora Effect Coming?

I was surprised to see the following press release about subscriber growth from SIRIUS XM radio:

In the first half of this year, SIRIUS XM added 754,690 net subscribers compared to a loss of 590,421 net subscribers in the first half of 2009.  The Company ended the second quarter with a record-high 19,527,448 subscribers, an increase of more than 1.1 million subscribers from June 30, 2009.

My belief had been that satellite radio’s growth among consumers would be blunted or stunted by Pandora.

Sirius XM is $12.95 per month. If you pay $3 more you can get it on your PC and/or mobile devices. By contrast $36 per year gets users Pandora without commercials. If you tolerate the occasional audio ad it’s free.

Sirius has more selection and talk shows, as well as a mobile TV offering now. So perhaps consumers are responding to selection. However, I would be interested to see the overlap between smartphone owners and Sirius subscribers. My assumption is that the overlap is small and that as smartphones gain Sirius will lose.

I have to believe ultimately that Pandora will negatively impact Sirius’ opportunity with consumers.

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2 Responses to “Sirius Sees Growth, Pandora Effect Coming?”

  1. Jfoerch says at

    Just saw this article after reading your own…take a gander if you will
    http://siriusbuzz.com/where-will-sirius-xms-growth-come-from.php

  2. Greg Sterling says at

    Thouughtful and pretty comprehensive. Thanks

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