XM Cuts Sub Forecast
May 24, 2006 at 3:16 PM (PT)
After a run of bad news, XM SATELLITE RADIO is cutting its subscriber forecast for year-end 2006 from 9 to 8.5 million.
The company's CEO HUGH PANERO said that "although XM has regained retail market share since the first of the year, the satellite radio category has seen an overall softness at retail during the second quarter to date, and we have been later than anticipated with broad availability of our new products." XM has been beset by shareholder lawsuits over expense projections in fourth quarter 2005 and a suit by the RIAA over the new Inno receiver's recording capabilities, as well as regulatory battles at the FCC.
And rubbing it in a little is SIRIUS SATELLITE, which took the occasion of its rival's announcement to reaffirm its own projection of 6.2 million subscribers by year's end.