XM Canada started trading today in Toronto but got off to an inauspicious start by closing below its $16 offering price. For an IPO that was over-subscribed, it's difficult to tell why it didn't perform better out of the gate. Perhaps there is still some doubt among investors about how well satellite-radio will do in Canada. Just because nearly 8 million people subscribe to the service in the U.S. doesn't mean it will be as successful north of the border. Canadians tend to be more price-sensitive and it may take some time before they start to believe that paying $12.95 for 100 channels of commercial-free radio is worth it. I mean, this is a country that has gone crazy for buck-a-beer and believes Tim Horton's makes as good a cup of java as Starbucks. In comparing the Canada with the U.S., I would also suggest commuters don't drive as long as many U.S. cities where suburbia is alive and well. Canada is also fortunate to have a popular and well-financed public broadcasters - CBC - that provides several channels of commercial-free radio already. And Canada doesn't have Clear Channel dominating the market, which means the market isn't as homogenous. Does this mean satellite-radio is doomed to make, at best, mediocre inroads in Canada? Maybe but I think it will just take longer for the market to gain momentum. In the short-term, Canadians are going to do a lot of browsing and radio-kicking before they jump into the service. But over time, I think a lot of people will climb onboard - lured by relatively low prices for service and hardware and the reality there is life in commercial-free radio beyond the CBC. If this scenario materializes, XM's disappointing first-day stock performance could offer a good buying opportunity.