XM Satellite Radio Holdings Inc. (XMSR) Message Board

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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR)

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To: pcstel who wrote (2245)	2/21/2006 4:39:34 PM
From: i-node	of 3386

Again, the issue is not retail subs, or promo subs, etc. The issue is CHURN. i.e. not counting promo subs, but only retail subs in the CHURN metrics. This is not correct. They do count retail subs in churn. And they do count self-paying OEM subs in the the churn. They exclude from churn those listeners who received a free subscription paid for by the OEM. That said, they do provide you sufficient information to compute this figure yourself should you choose to do so. For the life of me, I cannot see why you would care; they provide the Take Rate, which is, in effect, the complement of the promotional churn figure if you want it and is the form of the figure that is most interesting. If you want to know the OEM churn, it is 1-(TakeRate) = 45%. You can then easily compute a "blended" churn rate if you choose to based on the number of "takers" vs. "nontakers". But why would you care about it? It conveys little, if any, meaningful information -- you start out with two meaningful figures and combine them in such away that you get one useless figure. What is the point?

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