Wednesday, May 24, 2006

XM Satellite Radio growth slowing?

XM Satellite Radio, the US satellite radio leader, has just lowered its forecast for new subscribers this year, citing regulatory and legal challenges. And their share price slumped 5% on the back of it.

Could it be that satellite radio subscriber growth is slowing? Or is XM losing the battle to upstart Sirius? I am sure that we will find numerous answers to these questions as more statistics come out over the next few days, BUT, I can't help feeling that satellite radio growth is not only slowing but may peak out earlier than most expect.

Given all the competing media and communications bills we pay today, including cable bills, telephone bills, hi-speed Internet bills, Wi-Fi access fees and mobile phone bills, I can't help wondering whether a satellite radio bill on top of all the other near essentials will cap users at the wealthier few?? Let's see!

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