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

To: i-node who wrote (2722)	7/25/2006 12:08:55 PM
From: pcstel	Read Replies (1) \| Respond to of 3386

OTOH, XM has been beaten up beyond all recognition at this point -- largely because they have not adequately marketed the product, but certainly XM has taken a worse beating than is justified by the facts. In 2005. XM spent over 485 MILLION Dollars on Marketing Expenses to acquire 2.7 million subscribers. At an average ARPU of 10.75 per month. 2.7 million subscribers paying the average ARPU rate of $10.75 yields ony 348 million in revenue over a 12 month period. This doesn't even include most of the operational costs (G&A), royalties, retention, billing, etc. If you can't market the product with 485 million dollars.. Then the question you have to start asking yourself is... Maybe this product is not such a compelling value and the market for the service provided is not near as large as many of the SDAR proponents have maintained over the years? And so it goes, PCSTEL