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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR)
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To: i-node who wrote (2250)2/17/2006 8:47:59 PM
From: pcstel  Read Replies (1) of 3386
 
"Subscribers"? As in "someone who is paying for the service"?

Yes, Subscribers! As in "someone who is actually paying for the service. Which BTW, those Promo Subscribers haven't actually paid for the service. But, you argue that they should be included in the subscriber numbers because they are paying customers.

My point, in case you're not getting it, is that churn, to be meaningful, has to measure the propensity of a paying customer to leave the service.

Look, I have no problem with that definition. You just can't turn around and claim that those same promo users are subscribers. This has been your argument from the beginning. That being... that since the manufacture is indeed paying in part, "in some form", a payment for the promo customer to receiive the service during the promo period, that they should be counted as a paying customer/subscriber. But then you turn around and use the same logic to claim that since they were not a "paying customer", they should not be counted in CHURN.

This should be simple.

Either A..

Subscriber Numbers include those under Promo periods
CPGA is calculated including those Gross Adds under Promo periods.
CHURN is calculated including those under Promo periods that did not turn

Or B...

Subscriber Numbers do not include those under Promo Periods.
CPGA is calculated excluding those Gross Adds under Promo periods.
CHURN is calculated excluding those under Promo periods that did not turn.

You can claim that the way it is presented is right. But, the bean counters are not going to listen to you.
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