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Report: Satellite radio to skyrocket
JupiterResearch says installed based of satellite systems will jump to 55 million by 2010, up from 12 million in 2005.
Sales of satellite radios are ready to blast off, according to a research report out today.
The report, from JupiterResearch, projects that the installed base of satellite radio systems will jump from 12 million in 2005 to 55 million units in 2010. That indicates an annual growth rate of 35 percent for the industry.
The report says transportable devices--portable and "plug and play," which connects to stationary receivers--will continue to drive the business, representing 66 percent of sales in 2005 and 60 percent in 2010.
Satellite radio devices for cars will be the big growth area, however, jumping from 2.5 million units sold in 2005 to 6.9 million units in 2010.
"Transportable devices will lead the installed base mix, with sales being driven by wide device selection and lower price points, [but] in-vehicle interest has been strong," said Michael Gartenberg, VP and research director at JupiterResearch.
The report says the industry's two major players, XM and Sirius, should move beyond the car and integrate satellite radio into other devices in order to spur growth. The report recommends the companies offer streaming services to cell phones because of the large user base.
"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, Jupiter's senior vice president of research. "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."
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