Sirius: Satellite Radio Subscriber Growth To Crater In 2009 (SIRI)

CEO Mel Karmazin took Sirius XM (SIRI) shares to a historic low Tuesday when he told investors subscriber growth would slow to a crawl in 2009. He said Sirius XM would end the year with 19.5 million subscribers, but that it would only add another 2 million, or about 10%, in 2009.

That’s slower growth than any previous year for either Sirius or XM as separate companies, and significantly lower than analyst estimates. Janco Partners’ April Horace, a longtime follower of the sector, predicted 23 million subscribers by the end of next year, compared to Karmazin’s 21.5 million.

On the bright side, Karmazin said he’s “taking cost out of the organisation every single day” and found another $25 million in savings, to boost total predicted post-merger savings to $425 million. But that’s irrelevant to the prospects of satellite radio, which seem dimmer than ever. SIRI shares fell nearly 10% to $1.14 on the NASDAQ.

See Also:
Will Apple’s iPhone Save Sirius? No.
Your iTunes Library Anywhere? An iPhone No-Brainer For Apple
The iPhone’s AOL Radio: Bad News For Sirius-XM, Good News For The Music Biz
The Sirius-XM Hangover: Endless, Growing Competition
What Happens To XM And Sirius After A Merger? Not Much, And That’s A Problem

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