Wednesday, April 19, 2006

A Deeper Look AT The NPD Data

April 19. 2006

The Chart above represents the sales split on the NPD data for all of 2005 as well as the first quarter in 2006. You can click on the chart to enlarge it.

What you can see here is a virtual reversal from the first quarter 2005 to the first quarter 2006 in the favor of Sirius Satellite Radio.

Sirius Satellite Radio has led XM Satellite Radio in the last seven consecutive months, and 8 out of the last 10 months. Some have attributed this to the Howard Stern Effect, and certainly that would appear to have had an impact.

What is clear from this data is that Sirius Satellite Radio is performing very well at the retail channel, and it would appear that the brand recognition of Sirius remains to be strong.

Some people are looking for a point at which "The Stern Effect" wanes and normalizes, but there seems to be debate about what the normalized market share will be. In the opinion of SSG, the satellite radio companies should settle down at about parity in terms of NPD share, unless there is a substantial move made on the part of one of the companies. The time frame at which this settling down happens is still up in the air. Something as simple as Howard Sterns programming being available via on-line listening could very well stoke the fires of "The Stern Effect" yet again.

The link to this write up is http://tinyurl.com/h82of

4/19/2006 12:04:00 PM

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