EXHIBIT 11.1


                                CD RADIO INC.
                       (A DEVELOPMENT STAGE ENTERPRISE)
                      COMPUTATION OF NET LOSS PER SHARE


<TABLE>
<CAPTION>
                                    Three months ended                     Six months ended     
                              -----------------------------        -----------------------------
                                  June 30,       June 30,              June 30,       June 30,  
                                    1997          1996                   1997          1996     
                              ---------------  ------------        ---------------  ------------
<S>                           <C>               <C>                <C>               <C>        
Net loss                          ($353,825)    ($687,026)             ($834,985)   ($1,203,909)
                                                                                                
Deemed dividend on                                                                              
   preferred stock              (43,312,500)        -                (43,312,500)        -      
                              ---------------  ------------        ---------------  ------------
                                                                                                
Net loss attributable to                                                                        
  common shareholders         $ (43,666,325)    ($687,026)         $ (44,147,485)   ($1,203,909)
                              ===============  ============        ===============  ============
                                                                                                
                                                                                                
Weighted average common                                                                         
  shares outstanding             10,313,114     9,322,471             10,307,255      9,385,781  
                              ===============  ============        ===============  ============
                                                                                                
                                                                                                
Net loss per common share            ($4.23)       ($0.07)                ($4.28)        ($0.13) 
                              ===============  ============        ===============  ============

</TABLE>