Sirius reported Q3 net new subscriber additions of 182,000, slightly above our
expectations of 177,000.
The satellite industry continues to show a significant likelihood that it will "change the
way we listen to radio." We do expect Sirius to add 350,000 subscribers in Q4 to reach
its target of 1 mm subs by year's end. Driving growth expectations are increased
advertising, an increasing awareness due to the Christmas selling season, recent content
deals with the NFL and Howard Stern, a general increase in print and TV coverage, and
continued delivery of Sirius music as part of TV programming to most of Dish Network's
10.3 mm subscribers. In addition to increasing consumer awareness, Sirius' 20,000 points
of sale are set to increase by nearly 3,000 with the addition of Target, K-Mart, and
Office Depot. |
