Kagan Research forecasts that consumer interest in satellite radio is growing at a rapid pace. Factors such as low churn, new programming and exclusive agreements with auto manufacturers will boost subscriptions for XM Satellite Radio and Sirius Satellite Radio to 46.8 million, with revenues of $7.6 billion, by 2014.

Sure, free emerging technologies will cause competitive pressure, but the auto partnerships are offering some protection according to Kagan.

Interestingly enough, they’re estimating that XM will reach cash-flow-break-even by Q3 2007 and Sirius will be around 2008. This is a much more conservative estimate than what we’ve been hearing.