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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR)
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To: i-node who wrote (2234)2/17/2006 4:33:48 PM
From: DaveMG  Read Replies (2) of 3386
 
So by the end of 07 when subs will presumably have already reached 10 million churn actually starts to become a fairly serious issue. OF the anywhere between 2.5-4.5 million potential new subs, a full 1.8 million will be needed to maintain the 10 million over the year, which greatly reduces the growth rate and the rate at which cash can flow to the bottom line because of these acquisition costs, however they're labeled. And the greater the number of subs the bigger the problem.So they have to significantly reduce churn and acquisition costs..
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