XM Gains 60K Subs, Sirius Gets Started
By Amy Gilroy -- TWICE, 7/8/2002
WASHINGTON— XM Satellite Radio announced it achieved a net gain of 60,000 subscribers for the quarter, reaching a total of 136,500 subscribers and exceeding most Wall Street projections.
The company also said that General Motors is going into production on 23 additional car models, for a total of 25, that will offer XM radios for delivery to the marketplace in August or September.
A GM spokeswoman said that Pontiac is offering free XM receivers to those who purchase a 2003 Grand Am, Sunfire, Aztek or Bonneville through November. Other GM cars are offering XM radios as a $325 option.
In total, XM is expected to reach 200,000 subscribers in the third quarter and 350,000 by the end of the year. Sirius Satellite Radio, which officially launched its service nationwide on July 1, has projected sales of 100,000 to 150,000 subscribers by the end of the year.
Contacted the morning of the launch, president/CEO Joe Clayton said, "[Sales] the first few hours have been pretty good."
Currently 60,000 Sirius radio products are in the pipeline, he added, noting that Panasonic is expected to make its long-awaited announcement regarding Sirius product plans shortly.
