Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR) -- Ignore unavailable to you. Want to Upgrade?

To: DaveMG who wrote (2231)	2/17/2006 5:39:59 PM
From: pcstel	Read Replies (1) \| Respond to of 3386

That makes sense. So is 18%/yr the actual churn number? I have to look into that. No one knows what the ACUTAL CHURN is. Because they won't give you all of the data. Like I said, they claim that the "trial customers" is a subscriber, (which lowers CPGA ratios), but then claim they were never a subscriber when the do not turn them. Which makes CHURN numbers look better. So one of the most important metrics you need to know in a subscriber model is.. well.. not really disclosed. To make things worse. Management will keep a "non-subscriber" on the subscriber roles as long as 9 months after they deactivate service. Management says they do this because they hope they will return as a subscriber in a given time period and they won't have to do the -1, +1 math. In a subscriber model. Even a slight increase in CHURN can destory a financial model. The bean counters have returned. They are counting the beans and they don't add up. At that point, future potential goes out the window until the beans start to add up again. Wall Street types have no emotional ties, and vote with their sell orders. Just my opinion.