U.S. DIGITAL SATELLITE RADIO DEVICE MARKET WILL GROW TO 55 MILLION UNITS IN 2010

Jupiter Research: Forecasts that the U.S. digital satellite radio market will grow from an installed base of 12 million units in 2005 to 55 million units in 2010, a compound annual growth rate of 35%.

Transportable devices will lead the installed base mix with sales being driven by wide device selection and lower price points, however, in-vehicle interest has been strong. Twenty-three percent of online consumers we surveyed demonstrated a strong interest in the service, but overall only 6% of online consumers have satellite radio.

Sixty-six percent of sales in 2005 will be transportable devices comprising both plug & play and handheld units. This trend will continue though to 2010, which will see 60% of sales coming from transportable devices. In-car device sales will grow from 2.5 million units sold in 2005 to 6.9 million units in 2010. Both XM and Sirius need to move beyond the automobile and integrate satellite radio into other devices in order to spur growth. The cell phone presents a lucrative opportunity -- not for integrating the satellite receiver, but instead for taking advantage of fast wireless networks to offer existing Internet streaming services to both current and new customers.

U.S. Satellite Radio Forecast, 2005 to 2010 ubl. 200511122 Satellite radio? Answers About Release publ. in: VnuNet Information Week