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Top >  Business >  2006 >  May >  2006-05-28

Sirius Wins the Satellite Radio Business Wars


In the world of satellite radio there seems to be no competition. Sure, there are two businesses fighting for the top spot, but considering the advantage of Sirius Radio, XM has no chance at all of winning this business race, at least not this year. Before Howard Stern was thrashed with fines from the FCC, no one ever heard of satellite radio, and if they did, no one was considering making the move from free radio to pay radio.

However, Howard Stern single handedly changed it the satellite business world by deciding to remove himself from radio and move over to the un-regulated satellite radio services. It is in this world that Howard Stern can continue to be the radio shock jock that we all know and love. And he is the primary reason why Sirius radio is predicting major sales increases. There may be an emerging winner in the satellite radio war, with Sirius reaffirming its subscription increase, and XM lowering its forecast.

Sirius Satellite Radio Inc. still expects to have over than 6.2 million subscribers by December, up 87 percent from last year. The satellite that signed shock jock, Howard Stern, says it fully expects to gain 2.8 million subscribers with continuing demand. However, rival XM Satellite Radio Holdings Inc. blames a lack of retail sales and product availability problems for weak sales. Retail sales may be down, but that doesn`t stop Stern fans from buying Sirius and tuning in. Perhaps XM radio needs to look for a new hook to bring in the customers.

                                 

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