After repeated delays, satcaster Sirius Satellite Radio has finally launched its subscription radio service in a limited rollout to four U.S. markets -- Denver, Houston, Phoenix and Jackson, Miss.
For a monthly fee of $12.95, Sirius subscribers get 100 commercial-free digital audio channels, including 60 channels of music and 40 channels of sports, news and talk.
Satcaster, which is experimenting with different promotion plans in each of the test markets, plans to roll the service out nationwide in August.
The radio service, which is broadcast by Sirius' three orbiting satellites, competes head-to-head with XM Satellite Radio, which went to market nationwide late last year and has signed up more than 30,000 subscribers. Analysts expect Sirius to attract up to 200,000 subscribers by the end of 2002, while XM is seen pulling in more than 300,000.
Neither satcaster's stock benefited from news of the Sirius launch Thursday: XM stock fell 7% to $13.39, while Sirius' shares sank nearly 8% to $6.48. Both stocks have been on a roller-coaster ride over the past six months as investors tried to get a handle on their long-term prospects.
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