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To: t_skoz

They have 3.2 million subscribers and they lost $190 million in 3 months.

This means they're losing $20 per subscriber per month.

I love my XM to death, but I'll be darned if I can figure out how they're supposed to make any money.

One thing they can do is get rid of all the DJ's. If I wanted some yutz to talk over my music, I'd listen to FM.


26 posted on 02/10/2005 2:19:59 PM PST by VisualizeSmallerGovernment (Question Liberal Authority)
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To: VisualizeSmallerGovernment

I suspect a good portion of their reported operating expenses is depreciation on their satellites (and related assets). This is a non-cash expense.

On a cash flow basis, they're probably pretty close to break even... which means they can meet their day-to-day expenses. They need to grow their subscriber base by about 5x to throw off sufficient cash to retire their debt. They have some time to do this so long as they can keep the cash flow positive.


28 posted on 02/10/2005 2:27:49 PM PST by So Cal Rocket (Proud Member: Internet Pajama Wearers for Truth)
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To: VisualizeSmallerGovernment

A DJ on satellite radio is worthless really. Outside of compiling a playlist the song announcement is on the LCD.


40 posted on 02/10/2005 4:10:03 PM PST by Bogey78O (Hillary Clinton + Fertility pills + Scott Peterson + rowboat = Success)
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