XM Exceeds Expectations

Satellite radio service doubles its customers in first quarter, total customers grow past 76,000 as the company announces alliances with key auto makers.

by Roy Mark of dc.internet.com [April 1, 2002]

XM Satellite Radio exceeded most Wall Street analyst expectations for first quarter subscriber growth, ending with more than 76,000 total customers as of March 31. Described by the Yankee Group as the fastest-growing consumer electronics audio product of the last 20 years, the Washington, D.C.-based XM more than doubled its subscribers in the first quarter.

XM President and Chief Executive Officer Panero said XM remains on track to end the year with 350,000 subscribers. He noted that the majority of XM subscriber growth has come from consumer retail distribution. However, he said he also expects significant growth from the automotive sector in the second half of the year, when XM will become available in a variety of new car models.

"XM added over 48,000 subscribers in the first quarter, exceeding its target by 15 percent, outpacing most Wall Street analyst expectations," said XM President and CEO Hugh Panero. "Our momentum continues with consumers, retailers, and auto makers alike are recognizing XM as the hot new audio entertainment product of 2002."

Beginning this fall, General Motors will offer XM on 23 models including the Buick, Chevrolet, GMC, Olds, and Pontiac car lines. GM already offers XM in Cadillac Devilles and Sevilles.

In addition, participating Isuzu dealers will also offer to install XM radios in Axiom and Rodeo models beginning in April. Isuzu also has designed and developed a mounting kit that allows all Isuzu Axioms and all 1998 and newer Isuzu Rodeos to be easily retrofitted with a XM radio.

Last week, Nissan announced that satellite radio systems will be available in select 2003 model Nissan and Infiniti division vehicles beginning later this year. Models include the Infiniti Q45 performance luxury sedan, the Infiniti G35, the Infiniti I35 luxury sedan along with the Nissan Pathfinder sport-utility vehicle and the Nissan Murano crossover SUV.

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