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 (400)	11/25/2002 2:43:35 PM
From: russwinter	Read Replies (2) of 3386

The $180 sub acquisition number you use is dated. Per the 3Q call, biz.yahoo.com acquistion is now $120 (for 3Q) and anticipated $110 for 4q, reasons sited: lower subsidy especially SkyFi, piggybacking GM advertising, maturation of the retail network. As the OEM and retail market expands the sub costs drop pretty steadily. Sub 500,000 costs a heck of a lot less than sub 100,000. Other points: 70% activation rate on new GM cars leaving the lot. Churn rate was described as "very low", no actual number was given. Most subscribers paid six months or a year in advance. I think they are having a little more trouble with the SkyFi than they are letting on, however. There is a "clip" in some of the 98-99 luxury model cars that cause radio fuzz or noise. My girl friend had to exchange out the SkyFi for another model in her 99 Lexus. The shop (Best Buy)contacted XMSR and they were aware of the problem, and were "working on it". On the call mgt indicated 120,000 SkyFis were being shipped by mid-Dec. Best Buy only had two on hand (that was two weeks ago). Sales people were describing sales as brisk. I don't know if that's been corrected yet?

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