Jonathan Jacoby of Banc of America Securities posted a research note yesterday (8/29) claiming that satellite industry radio sales grew 2% year-to-year in July. He is just reporting on the NPD numbers.
SIRIUS seems to have achieved the majority of that growth, with XM sales down 29% and Sirius sales up 49% year-over-year. Jacoby wrote that he thinks the XM decrease was due to product shortages because of the FCC emission tests.
It seems as though SIRIUS got a bit of advantage from seeing XM get hit by the FCC first, perhaps the advantage of being a bit smaller and not as squarly in the center of the FCC radar screen. I would bet that SIRIUS began revamping their radios when they first heard of XMs issues and therefore had a few weeks head-start.
Jacoby said that Sirius’ growth was up 49% year-to-year. He informed investors that “Sirius has taken share on account of product shortages for XM.”
At the same time Jacoby advised, “We continue to recommend the XMSR/SIRI pair,” he also warned, “We do NOT believe that satellite radio is out of the woods yet regarding the fallout from the FCC issue.”
Satellite Standard, as usual, has really good coverage of the NPD Satellite Radio Numbers for July.