According to Inside Radio, XM Radio's Scott Karnedy said at a IRTS Seminar that for the last two years “we’ve been selling the dream" and now they can "move the needle." Even so,SIRIUS' SVP Sam Benrubi says satellite radio is "not necessarily taking from traditional radio."
Analysts expect XM and Sirius to do $80-100 million this year - compared to $20 billion for over-the-air radio. Now, considering that the current satellite radio audience isn't anywhere near critical mass, the ad sales critical mass assumption is a little too preemptive in my opinion. That's like looking at Radio's ad revenue in say, 1946, and making an assumption on their own ad revenue.
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