XM, Sirius gaining traction
Car dealer Tom Barenboim considered himself a skeptic of satellite radio until a customer made it clear: He wasn’t going to buy the $34,000 silver Jeep Grand Cherokee unless it had a $199 satellite receiver.
“Two months ago, I would have told you I didn’t really see it getting any traction,” says Barenboim, owner of Clark Chrysler Jeep in Methuen, Mass. The buyer left with a digital dashboard model from Sirius Satellite Radio instead of a traditional AM-FM tuner. “Today I think it might make it.”
Sirius and XM Satellite Radio Holdings are challenging traditional radio by attracting U.S. listeners with commercial-free music, scores of channels, uninterrupted reception and pre-installed car receivers. Their shares have outperformed those of Clear Channel Communications and Viacom, the two largest U.S. owners of land-based radio stations, which are trying to stem audience and advertising declines by changing formats and adopting digital signals.
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