Sirius has built its entire business on Stern exclusivity -- they did, after all, spend 3/4 billion on Stern with Stern claiming, "I can't do a quality show on terrestrial radio anymore".
It appears that once again.. Mr. Ray has chosen to just "make up numbers" to help satisify his self-BITTERNESS.
Let us read the SEC statements, and not Mr. Rays Logik Blender™ opinions.
sec.gov
Our aggregate fixed obligations under the agreement are approximately $100 million per year. These costs include production and operating costs for the show, including compensation of show cast and staff, overhead, construction costs for a dedicated studio, a budget for the development of additional programming and marketing concepts, and payments to Stern and his agent.
It contiunes..
We estimate that we will recoup our fixed obligations under the agreement when we acquire approximately 1,000,000 incremental subscribers. This estimate is based upon a number of significant assumptions (which we believe to be reasonable but which contain significant uncertainties), including the timing and costs of acquiring such subscribers and the length of time such individuals remain subscribers. In addition, if we achieve the incentive milestones contained in the agreement, we believe that the material positive effects on our business will far outweigh the related incentive payments.
But, somehow Mr. Ray refuses to compare those costs to the MLB Baseball deal that costs XM ~59 million dollars CASH each year. And that 59 million is only the liscensing fee. It does not count staff, travel expenses, production costs, overhead, etc. for the production of nearly 2,420 MLB baseball games each year.
If the costs per game were only $5000. That would add another 12 million dollars to the annual costs.
Has MLB added 1 million subscribers? And Mr. Ray claims Stern is a "non-performing asset"?
And so it goes,
PCSTEL |
