Research and Markets: The Advertising Revenue for the Satellite Radio Stations XM and Sirius is Predicted to Be Worth $481.6 million by 2012
Research and Markets has announced the addition of the eMarketer report: The Satellite Radio Report to their offering.
January 2006 marks a turning point in the history of broadcasting: Howard Stern leaves traditional radio and begins beaming from subscription satellite radio provider Sirius. It’s one more example of the major shifts occurring in media distribution and consumption.
The Satellite Radio report explores the phenomenal new media channel that has grown faster than satellite TV–and the impact that growth is having on all media.
Key questions the “Satellite Radio” report answers:
- Who is listening to satellite radio?
- What are the differences between the two satellite radio providers, XM and Sirius?
- What impact will the Howard Stern move have–on Sirius and the overall satellite market?
- What challenges do satellite radio providers face?
- And many more…
- Satellite Radio Subscribers in the US, 2004-2010 (in millions)
- Issues & Questions
- Anticipated Actions of US Howard Stern Listeners* in Reaction to His Move to Satellite Radio, July-November 2005 (as a % of respondents)
- A. The Current Satellite Radio Market
- B. Demographics
- Related Information and Links
Extract - Advertising:
Both Sirius and XM feature commercial-free music stations, but have some commercials on their talk and news shows. These include on-air reads by radio personalities, which can bring in thousands or even tens of thousands of dollars per read, depending on the popularity of a show. Broadcasting coast to coast, satellite radio offers marketers a national audience for their advertising, an opportunity not available with terrestrial radio.
For the nine months ending September 30, 2005, XM reported $12.8 million in advertising revenue, up from $4.5 million over the same period in 2004. Sirius reported $3.1 million in advertising revenue for the latest nine months, up from $399,000.
Sirius and XM are looking to increase their advertising revenues. According to a recent article by Reuters, Tobin Smith, founder of ChangeWave Research, estimates that 8%-12% of Sirius’ revenue and 5% of XM’s will come from ad sales in five years. Smith gives the advertising advantage to Sirius because of Stern and Sirius CEO Mel Karmazin, who has vast experience in radio advertising. Both companies also plan to offer subscribers the ability to purchase songs and content they hear on the radio as they listen, offering another income stream.
Deutsche Bank estimates that total advertising revenues for both companies will reach $481.6 million by 2012, up from $9.4 million in 2004. Although XM currently brings in more advertising revenues than Sirius, by the end of the decade, Deutsche Bank predicts that this situation will have reversed.
Advertising revenues will stand at about $28 million by the end of 2005, according to Kagan Research, and will total over $854 million by 2014.
- Research and Markets: The Advertising Revenue for the Satellite Radio Stations XM and Sirius is Predicted to Be Worth $481.6 million by 2012
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