Satellite-radio broadcaster Sirius XM Radio increased its 2012 subscriber target from 1.6 million to 1.8 million thanks to the rise in auto sales.
After the company added 445, 921 more subscribers in the third quarter, Sirius’ total customer number reached a record 23.4 million, marking the best third quarter since 2008, when the merge between Sirius Satellite Radio and XM Satellite Radio took place. Since the majority of new cars have this satellite feature as a built-in feature, Siruis’ net additions continue to increase as long as auto sales will continue to rise.
“With almost 1.5 million net subscribers already added in 2012 and continuing growth in auto sales, we will significantly exceed our previous guidance of 1.6 million,” said CEO Mel Karmazin.
Karmazin added that last year the company added 1.7 million customers and that currently the service is preinstalled in about two-thirds of new cars. He also said that Sirius accounts for 90% of America’s subscription music business and has 22.9 million paying subscribers, compared with Spotify which has 4 million, Pandora 1.1 million and Rhapsody 1 million.
“It is our belief that terrestrial radio will probably continue to decrease over the next five years – satellite radio will continue to grow,” Karmazin said.