[BC] Re: XM Radio stock action

[Phil Alexander]

On 17 Feb 2006 at 0:56, R J Carpenter wrote:

> To put things in a little more perspective.  In the Oct-Dec 2005 
> quarter, XM spent almost $200 million on "marketing" and only about 
> $30 million on programming.  So most of the expenditure has been 
> buying customers including subsidizing receiver prices.  The customer 
> acquisition cost eats up the first year's of subscription money. But 
> after the first year, subscriptions are profitible - thus the 
> prediction of positive cash flow by the end of 2006.  

Thus, they have a choice of growing at a much slower rate and
generating positive ROI or continuing to expand their market
at the present rate, which means going broke before they gain
significant penetration.

At some point reality happens! <G>


Phil Alexander, CSRE, AMD
Broadcast Engineering Services and Technology 
(a Div. of Advanced Parts Corporation) 
Ph. (317) 335-2065   FAX (317) 335-9037





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