In 2005 Digital Home wrote extensively about the efforts by to get approval for the sale of subscription satellite radio in Canada and its subsequent arrival North of the Border.
Like many consumers who were tired of the bland and commercial laden radio offerings in Canada, I was excited about the arrival of commercial free music radio that played the kind of music I wanted to hear.
In 2005, XM Satellite Radio was the number one satellite radio provider in the United States with Sirius well behind in the number two spot. It was expected that XM Canada would outperform Sirius Canada north of the border as well.
So how did XM Canada do this country. The answer is “Not very well”.
During the race up to XM Canada's launch in 2005 and during its infancy in 2006, company founder and CEO John Bitove continually predicted that XM would be the market leader and would have one million customers by August 31, 2010.
In fact, by August 13, 2010 XM Canada had just 432,200 self-paying subscribers, less than half of Mr. Bitove's predictions. Meanwhile Sirius Canada, the company that will own 58% of the combined company passed the 1 million paying subscriber mark in January 2010. From the start, Sirius Canada shot out of the gate and never looked back.
The news for XM shareholders was even worse. Shares in Canadian Satellite Radio Inc., the company that owns XM Canada, sold initially for $15 per share. The same shares closed today at $3 per share. In just over five years, XM Canada shareholders lost 80% of their investment!
According to financial results posted today, Canadian Satellite Radio Holdings Inc. had lost a total $ 370,138,405 since inception.
Discuss XM Canada's failures in Digital Home's Canadian satellite radio forum .