BUSINESS

Sirius XM's Subscriber Drain

06/08/2009 05:12 am 05:12:01 | Updated May 25, 2011

With auto plants shuttering and consumer demand in the doldrums, Sirius' larger-than-expected customer losses could continue into 2010. But now the satellite radio provider is contending with losses in both areas, and investors mind a great deal. Sirius lost 37,604 new car-related customers in the quarter ; Standard & Poor's analyst Tuna Amobi expected the company to add about 100,000 new car subscribers. Many analysts now expect Sirius XM to shed subscribers in the second quarter as well as retail sales remain in the doldrums and auto industry woes deepen. General Motors (GM), which also installs Sirius XM devices in its cars, will close a dozen plants temporarily this summer. 1

Good thing Sirius XM Radio resolved the debt issues that threatened to drag it into bankruptcy earlier this year ; the company's clearly got other things to worry about. Reporting a first-quarter net loss of $236.6 million this morning, Sirius (SIRI) said that anemic car sales had led to its first-ever decline in net subscriber additions. The company ended the quarter with 18.6 million subscribers-up 3.5 percent from a year earlier but down 404,000 subscribers from the preceding quarter. 2

  1. Sirius XM's Subscriber Drain (BusinessWeek Tech)
  2. Sirius Subscriber Losses Getting Serious [Digital Daily] (All Things Digital)

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