XM Canada is likely to outpace the subscriber growth of XM in the U.S., the company said yesterday.

"We believe the Canadian market will surpass the growth predicted for the U.S., given the U.S. is in its sixth year of business and we're still in our early stages of growth cycle here in Canada," Michael Moskowitz, the company's new president and CEO.

XM Canada reached 350,000 subscribers as of the end of their first quarter (ending Nov. 30th), a growth rate of 86% over the same period the prior year.

Moskowitz said XM Canada has benefited from the promotional campaigns and product penetration in the United States. The awareness helped prepare Canadians for the rollout of the service.

"We're really at the infancy stage here," Moskowitz said. "We still have a low percentage of cars that come with XM, so I think there's tremendous opportunity."

"The best years are to come because we're at an earlier stage in the whole development of satellite radio in Canada," he added in an interview after the meeting.

As for the merger, Moskowitz said it's still business as usual up north. "Even if there was a merger it would take several months - upwards to a year - because there's (Canadian) government regulations that would have to come into play as well," he said.

[The Canadian Press]
Thanks Lee!