Analyst: Sirius, XM Retail Sales Down 45% In November
December 13, 2006 at 2:38 PM (PT)
BANC OF AMERICA SECURITIES analyst JONATHAN JACOBY has issued his latest analysis of NPD retail figures for satellite radio, and he says NOVEMBER saw weak sales of satellite receivers, with a year-to-year sales drop of 45% overall. Added to OCTOBER's 25% drop, the first two months of the critical fourth quarter retail season show an overall 39% drop in unit sales. JACOBY says that the numbers confirm his previous analysis that the industry is switching from a retail-driven model to an OEM car radio-driven subscription model, which he says favors XM for the future.
The study showed XM unit sales down 45% for the month, leading JACOBY to cut his year-end subscriber projection from 7.8 million to 7.7 million. SIRIUS sales also dropped 45%, although NOVEMBER's sales were "stronger than expected," which JACOBY says may be "an indication that SIRIUS continues to execute better than XM at retail."