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U.S. Satellite Radio Market Forecast

The market for U.S. consumer satellite radio devices is projected to grow at a compound annual growth rate of 35 percent, from an installed base of 12 million units in 2005 to 55 million units in 2010, according to a report from market research firm JupiterResearch.

The report predicts that 66 percent of satellite radios sold in 2005 will be transportable handheld or plug-and-play units, a segment that will maintain a 60 percent market share in 2010. In-car radio sales are expected to grow from 2.5 million units sold in 2005 to 6.9 million in 2010.

"Transportable devices will lead the installed base mix with sales being driven by wide device selection and lower price points, however, in-vehicle interest has been strong," said JupiterResearch vice president and research director Michael Gartenberg.

"Twenty-three percent of online consumers we surveyed demonstrated a strong interest in the service, but overall only 6 percent of online consumers have satellite radio." The firm also noted that XM and Sirius should look to expand their services into mobile markets, where the Internet streaming versions of their satellite radio stations can be distributed to cell phones.

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