XM Satellite Radio Holdings Inc. said on Wednesday it added some 285,000 new net subscribers in the third quarter, fewer than that of rival Sirius Satellite Radio.
Sirius said it added about 441,100 net new subscribers in the third quarter, a 23 percent rise from the same quarter a year ago. XM Satellite said its total number of subscribers rose to about 7.19 million in the third quarter. One year ago, XM added 617,00 subscribers in the third quarter.
Both XM and Sirius are growing rapidly in a pay-radio market, but both are losing money as they spend heavily on technology and entertainment including celebrity hosts — to win new subscribers. XM and Oprah recently negotiated a 55 million three year agreement.
Both are expected to make significant marketing pushes for the holiday shopping season, typically the strongest quarter for adding net new subscribers