Analyst: Sirius, XM Retail Sales Down 45% In November

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."

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