The Wall Street Journal is reporting that sales for Sirius and XM, the two satellite radio companies in America, have fallen, coinciding with the recent economic downturn. The report sites the fact that both companies’ sales were dependant on new car sales to get new subscriptions as a major reason for the decrease in sales for Sirius and XM. Since no one in their right mind is going out and buying a new Hummer right now (most of XM’s subscriptions are people who have the service in their GM car), no one is signing up for satellite radio. With rising prices of everything (gas, milk, and food), people are less likely to want to spend $14 a month on satellite radio, and some subscribers are canceling. (I can attest to this; I recently cancelled my Sirius subscription for my car in order to be able to keep gas in said car.)   

Terrestrial radio has protested the Sirius and XM merger since it was announced, but maybe the economy will do their dirty work for them.

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