OK, so I’m a huge fan of XM Satelite Radio, well not as big as I used to be, but still better than anything else I can find.
But today, XM announced a revision to their end of year subscriber numbers, that will put it about 1.3 million subs short of it’s original estimate of 9 Million by years end. This same estimate says that they will only grow the business by 1.7 million subscribers this year, which is MUCH slower than last years growth.
My question is as follows. Is this a sign of what the industry has to look forward to, or are the lawsuits and pulled products (due to FCC incompliance), or is this a sign of the industry fading? Was this all just a fad, that is slowing down, and coming to an end, or is the market just soft?
And for those of you on the Sirius bandwagon that want to just bash XM, I challenge you this. Sirius is exactly one year behind XM as far as sub growth AND churn. Could Sirius see this same downturn next year, or will both bounce back?
One thing is for sure, I’m glad that I did not invest in the stock. As an fan of the service, it would have simply killed me to watch all my money disappear with this stock slide, and I would have started to really hate XM.
Not that I don’t have my complaints with the service, but I’ll save that for another day.