Telecommunications Industry News
XM Radio Canada Reports 60% Growth, but Falls Behind Sirius7:30 am on June 11, 2006 | Category: Business, Corporate, Mobile Devices, Wireless Technology
Canadaâ€™s biggest satellite radio operator, XM Radio Canada, has easily exceeded forecasts during its first six months in business, with a total of 80,000 paying subscribers as of May 30th.
This represents growth of about 60% since the end of February, and beats the companyâ€™s own forecast of 75,000 subscribers at the end of August.
Some bad news for XM is that it seems to be falling behind rival, Sirius Satellite Radio in terms of overall popularity. Sirius, which trails XM in the much larger American market, announced over a month ago (May 10th) that it had managed to recruit 100,000 customers in Canada.
These numbers suggest that Sirius has picked up twice as many customers as its rival in the past few months, since each company had about 50,000 users at the end of February.
In an attempt to turn around this apparent trend, XM recently beefed up its channel selection from 80 to 100 stations, but was quickly outdone once again by Sirius, which quickly began offering 110 channels.
XM, however, has scored at least one decisive victory in the past few months, announcing a distribution agreement with Toyota Canada. Beginning in August select Toyota and Lexus vehicles will come equipped with XM radio receivers, and free six-month subscriptions.
As both providers bend over backwards to recruit the most Canadian subscribers, it is most definitely customers that stand to win out. At this early stage, Canadaâ€™s satellite radio industry is still ripe for the picking, and everyone knows it.
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Published by TeleClick Enterprises
Edited by Jeremy Maddock