Retail Satellite Radio Sales Neck and Neck
For Immediate Release:
Updated Wednesday June 14, 2006

Bridge Ratings' trending of Satellite Radio subscribers continues through 2006. The purpose of this on-going study is to analyze consumer preferences related to satellite service brand and satellite radio in general.

Bridge Ratings interviews consumers at retail outlets who have purchased Satellite radio. In the early phases of theseinterviews, brand loyalty was not a major purchase factor. Some programming for each satcaster appealed to individual shoppers but there was little overall brand impact on the purchase decision. This has changed in recent weeks. Programming options and equipment style and benefits are taking a stronger position as the impetus for the purchase decision with Sirius more consistently being sited for its programming and equipment as motives for purchase.


XM: 648,086 Sirius: 615,150 Q2 Projected Total: 1,263,267

Bridge Ratings projects that over the last fifteen weeks 1,718,945 additional subscriptions to satellite radio have occurred at the retail level. XM's share of this 15 week projected retail sales total is 50.2%, Sirius 49.8%.

Based on the slowing trendline of sales for XM, Bridge Ratings now projects XM total subscriber count at 8.4 million by year end 2006 and 6.5 million for Sirius. Projections are updated quarterly.

The "Stern-Effect" seen during Bridge Ratings' satellite research trends of 2005's fourth quarter and into the first quarter of '06, continues to be less of a factor this quarter. Our latest estimate is that a total of 1.33 million (11%) of Stern's terrestrial fan base has migrated to Sirius. As Bridge Ratings continues to interview former Stern listeners, there is an apparent apathy regarding future Sirius subscriptions.

This week the response "I Don't miss Howard Stern enough to subscribe" drops to fourth most mentioned reason for not subscribing. Stern's impact on the satellite radio subscription model continues to weaken. This week "equipment and subscription cost" fell behind "I'm listening to amorning show that was my second choice before". These results lead us to believe that the absence of Stern on mainstream media and the lack of the continuing marketing that he enjoyed through 2005 and early 2006, is affecting the "Stern affect". Interestingly, inspite of this slowdown in subscriptions directly attributed to Howard Stern, Sirius continues to show strong retail strength based on other significant content benefits, most notably the quality of their music programming and their sports package. Stern as a marketing pillar solidified the Sirius market position and is likely stimulating market awareness of Sirius. We are finding major league baseball is having a primary positive affect on Sirius's continued ability to out-brand XM in recent weeks.

This week's interviews revealed that 55% of retail consumers purchased Sirius satellite radio systems while 48% mentioned the Sirius brand prior to the purchase. The higher index of purchase to brand awareness indicates that 48% of potential satellite radio shoppers interviewed this week were able to name Sirius Radio, but 55% of those consumers actually purchased a Sirius system - a 7% positive differential. Some aspect of the purchase process converted an additional 7% of shoppers to Sirius this week.The variable may have been price, equipment feature preference, programming preference - any number of issues that were presented to the consumer at point of purchase. Trending over the past three weeks shows this index growing for Sirius.

In the month of July, Bridge Ratings will release its full second quarter tracking for this sector. Those results will reflect these same consumers' opinions after a periodof time using the satellite service they chose.
*Based on interviews conducted at retail outlets between January 1 and June 12, 2006.
Markets surveyed: Los Angeles, San Diego, Phoenix, Boston, Detroit, New York, Boston. 4009 weekly listeners 18+.



full article: www.bridgeratings.com

6/14/2006 03:53:00 PM

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