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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR)
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To: pcstel who wrote (2887)9/24/2006 9:03:31 PM
From: i-node   of 3386
 
And yes it is my OPINION that SIRI's CPGA costs are higher in retail than OEM.. And by quite a margin. As it is my opinion that XM CPGA costs are also greater in retail.

Well, it is at least good to see that you are differentiating the two. So, how do you justify counting OEM churn as being equivalent to retail churn? Yes, the revenue stream is lost, but the cost of the stream is different, as you've just acknowledged.

However, you may be underestimating [hugely] the cost to Sirius of an OEM install. While Siriots have been quite vocal about how much XM is paying GM, the reality is that DCX is being HIGHLY compensated for OEM installs, and in XM's case, their other OEMs are much less costly so I've heard (no, I don't have a link, but XM's CPGA does suggest this is true).

You have never explained why it is okay that Sirius spends more than double what XM does for a gross addition.
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