>> Each Stern subscriber pays $156 a year in revenue. So it takes 1.28 million subscribers to "break even" on the Stern contract.
Right. There are no other costs, like music rights, like customer service, like $231 in CPGA. All that crap is just free.
Perhaps you flunked Managerial Accounting, but a fundamental premise of it is that you have to analyze contracts incrementally.
What did the addition of Stern do to the bottom line? In '06, the total increase in SIRI's loss due to Stern was probably $500-600 Million ($372 Million was paid directly to Stern, but there are obviously other substantial expenses to service these subs which, for some reason, you think should be ignored). Now, some portion of that should be recovered in future years, but it is entirely possible they will pay Stern $150M or more in '07 and who knows for the other 3 years.
The likelihood SIRI will ever recover their investment is quite small.
There is no evidence to suggest that NASCAR has done a damned thing for Sirius yet. Like NFL, there isn't a strong propensity for fans to listen to NASCAR racing on the radio. They are much more interested in personalities, and XM has the biggest personalities in the NASCAR business.
As for Tuna Amoebi, he is a Stern fan and that fully explains his so-called analysis.
I guess your remark about MLB having done "nothing" for XM is one more of your opinion/lies which you purport to be facts. XM's research, which is the only information we have, certainly suggests that MLB has been an important content item for XM. |
