Right. There are no other costs, like music rights, like customer service, like $231 in CPGA. All that crap is just free.
Good!! Looks like you can at least understand basic mathematics.. So 1.28 million subscribers at $156 a year gets Stern's total (1Billion) compensation package to break-even.
Now, when you don't like those simple mathematics, you resort to you usual.. Well, what about "music rights, customer service, CPGA, etc"..
Well, we were doing a "back on the napkin" comparision between XM's horrible MLB baseball deal at over 60 million a year, and the Stern contract at around 200 Million a Year.
Both of these contracts we are comparing have "other expenses" involved, that much is understood. So I am just sticking with the cost basis of each content item..
Perhaps you flunked Managerial Accounting, but a fundamental premise of it is that you have to analyze contracts incrementally.
ROTFLMAO!! Where the heck did that "wild A$$" tangent come from? I told you, that I was doing a "back of the napkin" comparision.. Now suddenly, you think we are preparing financial presentations or something. But, non the less.. I was presenting a comparision of the "back of the napkin" base 1 year costs of the contract. Heck.. I even took your elevated 1 Billion dollar figure. (Which in my opinion is probably 200 million high). Yet even though I used YOUR HIGHER Stern figure, and a base line (minus revenue share, which is probably minimal anyway) MLB figure. You are still whining like a woman..
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).
WOW!! You need to take some Prozac dude. You are claiming that $372 million was paid directly to Stern.. Which is much higher than the numbers I have seen in the media.. ($310 to $335 million).. But, now, you want to throw another 225 million dollars in "other expenses" on the fire.
Let's see what the Sirius Press Release states:
Total revenue for the third quarter of 2006 increased to $167.1 million, up 150% from $66.8 million in the third quarter of 2005. For the third quarter of 2006, SIRIUS recognized total revenue of $167.1 million compared with $66.8 million for the third quarter of 2005. This 150%, or $100.3 million, increase in revenue was primarily driven by a $91.1 million increase in subscriber revenue resulting from the net increase in subscribers of 2,945,388, or 135%, from September 30, 2005 to September 30, 2006, and a $5.6 million increase in net advertising revenue.
The company's adjusted loss from operations decreased $22.2 million to ($83.2) million for the third quarter of 2006 from ($105.4) million for the third quarter of 2005 (refer to the reconciliation table of net loss to adjusted loss from operations). This decrease was driven by an increase in subscriber revenue of $91.1 million as a result of a 135% increase in the company's subscriber base, which more than offset an $81.0 million increase in operating expenses.
Hmmm.. Revenue up 150% Y/Y for Q3 and Net Loss DOWN 22 million.. And operting expenses were up 81 million.. Which is just about the first year costs per quater of the Stern Contract. So revenue up 110.3 million, and expenses up 83 million. Doesn't look to bad compared to that MLB deal, which surely provides only a pittance of reveune compared to Stern.
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.
Correct, but then there also those "intangable" benefits, like you admitted about the "brand recognition"..
I guess your remark about MLB having done "nothing" for XM is one more of your opinion/lies which you purport to be facts.
I was just comparing the two web sites.. On the NASCAR web site.. The Sirius logo and promotion are everywhere. While on the MLB web site.. They are too busy promoting their own "home grown" MLB.TV offerings. And that my son.. IS A FACT at this time.
XM's research, which is the only information we have, certainly suggests that MLB has been an important content item for XM
LOL!! You bet it's the only information we have.. Because compared to Stern whose benefit to Sirius is obvious, at your own admission.. There is has been no "obvious" benefit from that 60 million dollar a year MLB deal.
And so it goes
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