Who ever doubted satellite radio would really take off? Not Tom Watts of SG Cowen.
The satellite analyst had good things to say about the business and XM Satellite Radio in a note released after the company reported 237,395 net additions for third quarter, taking its total to 929,648. Watts said he expects XM to continue trading strongly through the end of the year due to holiday spending in the aftermarket, launch of the company's "Roady" product and ramp-up of vehicle sales with XM through General Motors and Honda.
Watts predicted XM will pass the 1 million subscriber mark around Halloween, "but given the company's plans for a blowout celebration of the million sub mark, the announcement may be a week or two later," he said.
As for Sirius, the satellite radio company had second quarter net additions of 37,127. Watts said the company's net additions should pick up to 80,000 for the third quarter. That would bring Sirius' subscriber count to 185,186 after six quarters of nationwide operations.
