U.S. Digital Satellite Radio Will Grow.
October 28, 2005
JupiterResearch, a division of Jupitermedia Corporation, 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%. JupiterResearch details its findings in a new report entitled: “U.S. Satellite Radio Forecast, 2005 to 2010.”
“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,” said Michael Gartenberg, Vice President and Research Director at JupiterResearch. “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,” Added Gartenberg.
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. The JupiterResearch report finds that both XM and Sirius need to move beyond the automobile and integrate satellite radio into other devices in order to spur growth. The report points out that 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.
“The signing of big deals such as Howard Stern and Major League Baseball, has raised the stakes for XM Satellite and Sirius, even beyond the initial capital outlays for satellites and subsidized hardware,” said David Schatsky, Senior Vice President of Research at JupiterResearch. “The primary challenges for Sirius and XM are price and competition with other portable media players and music services, such as iPods and iTunes, respectively,” added Schatsky.
For more information at http://www.jupiterresearch.com
