If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. |
|
|
Thread Tools | Display Modes |
#7
|
|||
|
|||
XM financial trouble
In article ,
Andrew Gideon 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. This isn't true. New customers do not represent zero cost. While the broadcast infrastructure may be able to serve "trillions" of customers, the customer service, billing, maintenance, etc. all have costs that increase as subscriber count goes up. In addition, the infrastructure will require periodic capital improvements, both as subscriber count grows and as technology changes. That being said, it appears that both XM and Sirius are focused on market share and not profit at this point. Of those two goals, only profit is required to sustain a company, so there must be some long-term objective that would benefit from market share position--such as advertising sales. JKG |
Thread Tools | |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Need a financial help !!! | [email protected] | Piloting | 11 | October 13th 05 08:34 AM |
Avionic trouble | Henning DE | Home Built | 1 | September 10th 04 10:23 PM |
Trouble with Terra 230 Audio panel | Mark | Owning | 0 | July 20th 04 02:13 PM |
The Trouble With E-Ballots | WalterM140 | Military Aviation | 0 | June 26th 04 09:46 PM |
China's Chengdu J-10 Fighter - Big Trouble? | Kevin Brooks | Military Aviation | 0 | November 18th 03 02:06 PM |