Sirius Satellite Radio Reaches 6 Million Subscribers
Sirius Satellite Radio announced that it has reached the six million subscriber mark, an increase of 2.7 million over the past year. The year-end mark represents a significant 82 percent jump over figures of 3.3 million reported at the tail end of 2005.
The positive report comes at a time when speculation that Sirius and XM will eventually merge is at an all time high. Despite significant year-over-year increases, both companies are suffering from heavy quarterly losses and softer-than-expected subscriber gains. Mounting losses could force a merger out of necessity, though the details would be difficult on a technological, regulatory, and political level.
Sirius also revealed that it had achieved positive free cash flow during the quarter, though heavy net losses are also expected. XM Satellite Radioalso softened its year-end subscriber guidance with a range of 7.7 million-7.9 million, though it has not yet announced its actual tally. Specifically, Sirius ended the period with 6.024 million takers.
