EXHIBIT 11.1


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





<TABLE>
<CAPTION>
                                            Three months ended                            Nine months ended            
                                  --------------------------------------      --------------------------------------
                                    September 30,        September 30,         September 30,         September 30,
                                         1997                1996                  1997                   1996      
                                  -----------------     ----------------      ---------------       ----------------
<S>                              <C>                   <C>                   <C>                   <C>
Net loss                         $       (654,078)     $       (667,488)     $    (1,489,063)      $     (1,871,372)
                                                        
Preferred stock dividend                                
     requirements                      (8,662,500)                -              (51,975,000)                 -     
                                  ----------------      ----------------      ---------------       ----------------
                                                        
Net loss attributable to                                
     common shareholders         $     (9,316,578)     $       (667,488)     $   (53,464,063)      $     (1,871,372)
                                  ================      ================      ===============       ================
                                                        
Per common share                                        
                                                        
     Net Loss                    $          (0.06)     $          (0.07)     $         (0.14)      $          (0.20)
                                                        
     Preferred stock dividend                           
        requirements                        (0.74)                -                    (4.83)                 -     
                                  ----------------      ----------------      ---------------       ----------------
                                                        
Net loss per common share        $          (0.80)     $          (0.07)     $         (4.97)      $          (0.20)
                                  ================      ================      ===============       ================
                                                        
Weighted average common                                 
     shares outstanding                11,710,794             9,405,766           10,760,684              9,440,913 
                                  ================      ================      ===============       ================
</TABLE>