Faster than you can say "Bababooey," Sirius Satellite Radio
Naturally, one can't just assume that Sirius will land 700,000 new subscribers over every 11-week period. The company had a bit of ammo in its tank this time around, with Howard Stern moving his popular morning talk show to Sirius in early January. However, the first quarter is usually a seasonally soft one in the industry. A year earlier, Sirius signed up just 305,437 new subscribers. Sirius went on to sign 365,931 in the following quarter, with a sequential dip to 359,234 new net subscribers in the third quarter of 2005. Then came its blowout holiday quarter, where it scored more than 1.1 million new members.
With Stern's highly publicized arrival, it's likely that Sirius signed up more new subscribers than rival XM Satellite Radio
It will be interesting to see how this plays out over the course of the year. Sirius will be challenged to keep Stern fans trickling in now that he doesn't have the same kind of national stage to promote his on-air antics to non-Sirius subscribers. CBS
The one thing is clear: With 700,000 new subscribers for Sirius so far in 2006, it's good news for satellite radio and more bad news for conventional broadcasters such as Clear Channel
That's why satellite radio is a promising investing area for aggressive growth-stock investors. On that thesis, XM was recommended last year to Motley Fool Rule Breakers newsletter subscribers. The industry's goal to hit 15 million subscribers by the end of 2006 feels even more attainable today.
Longtime Fool contributor Rick Munarriz is a fan of satellite radio and has been a Sirius subscriber since 2004. He does not own shares in any of the companies in this story. The Fool has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.