US broadcasting provider Sirius Satellite Radio Inc has announced that its loss widened in the fourth quarter of 2003, despite adding 112,000 subscribers during the period. The New York-based company lost $147.8 million, compared with a loss of $122.1 million a year ago. This loss is greater than had been forecast. Revenue for the quarter increased to $4.95 million, up from $685,000. The company said it had 261,061 subscribers at the end of the year, representing a 74 percent jump from the third quarter and an eightfold increase from a year ago. Shares of Sirius shares on Nasdaq fell 5.4% on the news.
Meanwhile, rival satellite broadcaster XM has announced that it’s going commercial-free on its music channels as of Sunday, without raising the subscription price. Sirius had defended its higher subscription charges on the basis that it does not carrry advertising on its music channels, but that argument will no longer be valid. The competition between the two companies has clearly been turned up a notch.
on Jan 29th, 2004 at 16:11
Neither of these two folks expect to turn a profit soon.
Churn rate on XM is very high.
on Jan 29th, 2004 at 22:36
what sort of churn rate? ITVDigital in the UK had a churn of 23% before it folded. Sky is in single figures I believe.
on Dec 14th, 2010 at 06:07
what sort of churn rate? ITVDigital in the UK had a churn of 23% before it folded. Sky is in single figures I believe.
on Dec 14th, 2010 at 10:49
does it matter? this article was published in 2004, since when the two companies have merged. Sirius just paid a huge amount to keep Howard Stern.