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XM Hits Subscriber Mark

The pay radio outfit has 4 million subscribers.

XM Satellite Radio

(XMSR)

hit the 4 million-subscriber mark, as heavy promotions helped to offset Detroit's troubles and a recent price increase.

The Washington, D.C., pay radio shop says growth has accelerated and that a million new customers signed up for its $13 monthly service in the past five months. The company stuck with its goal of exceeding 5.5 million subscribers by year-end.

Starting this month, XM has hoped to drum up demand for its service by offering new customers a free additional radio with certain new radio purchases. The second radio is activated under a family plan for an additional $7 a month.

The solid progress report helps allay concerns that slumping sales at auto partner

GM

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(GM) - Get Report

may cut into new customer acquisitions. The numbers also show that the company's recent 30% price increase hasn't been a drag on new subscriptions.

"XM remains focused on providing compelling content, developing innovative radios and expanding our distribution channels at retail outlets and automobile dealerships -- an approach that has successfully led us to four million subscribers, and one we will continue to pursue to 20 million subscribers by 2010 and beyond," CEO Hugh Panero said in a press release Monday.

Sole satellite radio rival

Sirius

(SIRI) - Get Report

has 1.5 million subscribers and is expected to hit the 2.7 million mark by year-end.

Shares of XM rose 94 cents to $29.20, and Sirius was up 4 cents to $5.39 in premarket trading Monday.