SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: DaveMG who wrote (2229)2/17/2006 4:08:45 PM
From: i-node  Read Replies (1) of 3386
 
really think you're splitting hairs and this issue is not going to determine the failure or success of the model, or investor appetite for the stock.. They said on the call 54% become paying subs. Whether or not they are counted as subs when they're on the trial period does not affect the long term trend in any way whatsoever. I made my own simplistic spreadsheet more than 2 yrs ago and checked it yesterday. I had modeled 5.5 million subs at year end 05, annual revenues of 550 million,very close to what actually happened. Where I got it wrong was that I assumed 750 million in expenses. I will now start to model 1 billion going forward which pushes cashflow breakeven out a year or so.It doesn't seem that hard to model this stuff.

Exactly. And I agree -- when you have all these fixed costs, it comes down to hitting what the unit variable costs are to get a model that works. In your case, you up the fixed costs, it takes more subs to get to breakeven, but when you do, its all good.

The one thing is that we don't know what RIAA is going to do. But I don't think their case is going to be that strong, apparently, it will be decided in arbitration, and given that they're PAYING terrestrial radio to play music, it would seem they will have a difficult case to make in getting much more out of satrad.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News