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Old March 19th 06, 03:20 AM posted to rec.aviation.ifr
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Default XM financial trouble

On Wed, 08 Mar 2006 08:39:48 -0500, Jonathan Goodish wrote:

I do wonder, however, about how
$12/month is going to sustain the contracts for tens or hundreds of
millions of dollars for on-air talent; at some point, there has to be a
line in the sand for the providers.


Keep in mind that, aside from acquisition costs, new customers cost
nothing. That is, the infrastructure is the same for one customer or one
trillion customers. There *is* a number of customers where $12/month
covers that infrastructure.

I've no idea whether or not they can reach that number, mind you. I don't
even know if the number is greater or lessor than the number of people on
the planet grin.

I hope they succeed. I haven't purchased their service (I don't listen to
much music), but (1) I like having the option and (2) I like the aviation
products and I hope at least to purchase that at some point.

- Andrew