SIRIUS Satellite Radio had a strong fourth quarter with a better subscriber growth than expected.
At the end of 2004, SIRIUS had 1,143,258 subscribers, beating its year-end target of 1 million, and had over 1.24 million subscribers as of January 24. The company attributed much of the better-than-expected year-end number to robust holiday sales and an increase in its automotive channel business, driving revenue to $66.9 million, a 419% increase over the previous year.
“2004 was a turning point for SIRIUS, and a strong indicator of what we believe the future holds for a new entertainment category still in its early days,” said Mel Karmazin, CEO of SIRIUS. “Not only did we greatly exceed our estimated subscriber target for the year, but we also beat estimates in subscriber acquisition costs and monthly churn. The fourth quarter produced blow-out sales, heavily fueled by the holidays, and solid numbers in our automotive channel, which we believe will be a major contributor to our subscriber growth in 2005. Our strong start this year, along with an expanding slate of compelling programming, the introduction of third generation products later this year, and the anticipated arrival of Howard Stern next January, all contribute to our enthusiasm for the growth prospects of SIRIUS.”
As a result of a strong start to 2005, the company is raising its 2005 year-end subscriber estimate to over 2.5 million.
In the fourth quarter of 2004, SIRIUS continued to experience significant gains in the retail market, fueled by strong holiday sales of its products, broader distribution — including over 25,000 sales outlets — and growing consumer awareness of its brand, plus an increased preference for its superior programming. According to The NPD Group, SIRIUS’ retail market share reached 51% in November 2004, SIRIUS’ highest level on record.
According to the New York Post, execs from SIRIUS and XM Satellite Radio have been discussing a possible merger.
Murdok | Breaking eBusiness News
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