SIRIUS XM Radio Inc.
) declared that the company gained a massive 445,921 net subscriber
addition in the just concluded third quarter of 2012. This depicts
nearly 34% year-over-year upside and demonstrated the best ever
third quarter net subscribers' addition in the company's history.
Total subscribers base at the end of the third-quarter 2012 was
23,365,383, up 9.5% year over year.
The strong performance was mainly spurred by impressive
management execution on the back of rising auto industry sales. As
per management, the net subscribers' growth momentum of the company
will further expand in the rest of 2012 and has raised its
estimation to approximately 1.8 million of net subscribers'
addition in 2012. This is the third time management has raised its
net subscribers' figure in 2012.
SIRIUS XM has a very strong business relationship with OEMs
(original equipment manufacturers). The company currently commands
an estimated 70% market share of new cars sold in the U.S. In
January 2012, SIRIUS XM raised the prices of its services.
Subscription prices were raised almost 12% to $14.49 per month.
Despite this, the company holds its market share in the face of
growing competition from
Pandora Media Inc.
) and Spotify.
Meanwhile, SIRIUS XM is currently fighting a hostile takeover
Liberty Media Corp.
), its most powerful creditor. Liberty Media has filed a new
application to the U.S. Federal Communications Commission, in which
the company stated its intention to acquire more than 50% of SIRIUS
XM, so that it can take full control of the Board of SIRIUS XM.
Liberty Media withdrew its previous application with Federal
Communications Commission (FCC) to de facto control SIRIUS XM.
Instead, the company is now willing to get a full control. Liberty
Media at present has 49.6% stake in SIRIUS XM's total outstanding
LIBERTY MDA-LC (LMCA): Free Stock Analysis
PANDORA MEDIA (P): Free Stock Analysis Report
SIRIUS XM RADIO (SIRI): Free Stock Analysis
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