While Sirius Satellite Radio has reported 359,000 new users in the third quarter, nearly double the increase in the same quarter last year, Scott Moritz of TheStreet.com points out that those figures - far more impressive than the 48 percent subscriber growth rate at rival XM - could be the result of “liberal math.”
Both Sirius and XM count on arrangements with automakers to power subscriber gains, but while XM waits until a car’s satellite service is actually activated before adding it to the new subscriber tally, Sirius sometimes counts them as soon as a car with a factory installed radio arrives at a dealership.
That kind of calculation could be bolstering Sirius’s growth figures as dealers are currently receiving a new crop of 2006 models. Growth rate of both satellite services is tantamount in the advertising decisions made by media buyers, particularly as the satellite market has turned into a hotly contested, two-player competition.
In July, roughly half of XM’s subscribers and about a quarter of Sirius’s subscribers came from automotive partners.
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