valley_stream
11-15-2004, 03:32 PM
Friday, Nov. 12, 2004
Analyst Issues Bullish Satellite Radio Outlook
CIBC World Markets' Jason Helfstein initiated coverage of both XM and Sirius yesterday and said in a report on XM that he believes satellite radio represents "one of the few growth stories among subscriber/service business." Using "S curve" consumer-adoption models, Helfstein forecasts steady growth for both companies over the next nine years. "On the basis of current industry forecasts, we believe satellite radio will be a $30 billion industry by 2013, with 37 million subscribers, or 18% of total cars and light trucks driven," Helfstein says. He adds, "Although near-term growth may exceed expectations, the real question is what the industry will look like in 2014, the year we expect the S-curve to flatten."
Analyst Issues Bullish Satellite Radio Outlook
CIBC World Markets' Jason Helfstein initiated coverage of both XM and Sirius yesterday and said in a report on XM that he believes satellite radio represents "one of the few growth stories among subscriber/service business." Using "S curve" consumer-adoption models, Helfstein forecasts steady growth for both companies over the next nine years. "On the basis of current industry forecasts, we believe satellite radio will be a $30 billion industry by 2013, with 37 million subscribers, or 18% of total cars and light trucks driven," Helfstein says. He adds, "Although near-term growth may exceed expectations, the real question is what the industry will look like in 2014, the year we expect the S-curve to flatten."