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Technology Stocks : Sirius Satellite Radio (SIRI) -- Ignore unavailable to you. Want to Upgrade?

To: TheAlaskan who wrote (1155)	12/3/2004 2:16:28 PM
From: i-node	Read Replies (3) \| Respond to of 8420

For example, XMSR pays GM a fee for every XM radio that is factory installed. XM also gives a free subscription to GM for the trial period. XM counts these free subs in their sub count, but they do not produce revenue. This is not quite correct. Both companies compute SACs identically. But each company has some costs that are not correctly classified as SACs, and the payments to GM are one of them. You are also wrong about the "free" trial period. XM does give each OEM sub a 1-month free trial. But GM purchases a 2-month additional trial period which DOES GENERATE REVENUE at $10/month. They are [correctly] counted as paying subscribers. However, consistent with what the cellphone companies do with the promotional subscribers, they are not counted as "churn" if they don't take the subscription when the promo period ends. Sirius will do precisely the same thing with respect to its DCX promotional subscribers. XM/GM have a lot of "subs" that drop after their free period ends, but they do not release the data in a clear manner. If Sirius included its "free" subs, it would include the 10.5 millions DISH subscribers in its sub count who recieve a select assortment of Sirius music streams over their DISH system. Totally incorrect. "DISH subscribers" are not paid subs. Period. XM/GM promo subscribers ARE. XM has been crystal clear on this issue. If one looks at any of XM's financial releases (news or 10Q) one can immediate determine the number of subscribers in such promotional periods and the the number, within +/- a couple thousand, who will either drop or re-up the subscription. This is nonsense that stems from an article written by an idiot at Street.com months ago, and that Siriots have ignorantly jumped on, not realizing that Sirius does precisely the same with its DCX subs. In fact, Sirius has yet to break out the take rate on DCX subs, which they COULD have done in Q3.