Re: XM Adds 1.7 Million Subscribers


Kyle Attwater wrote:
XM Adds 1.7 Million Subscribers In `06(Stock dropped 50% last year)
RadioandRecords.com ^ | Jan 5, 2007





Based on preliminary results, XM Satellite Radio Friday morning (Jan. 5)
reported that it added 1.7 million new subscribers for calendar year 2006 --
442,000 coming in Q4 -- giving them a total subscriber base of 7.6 million.


How many of the 1.7 subs do you think are still paying customers? Isnt
the churn rate huge on both SIRI and XM?


XM also reported in its preliminary results that it achieved positive cash
flow from operations during Q4 `06.

Big whoop! They managed to bring in more money than they spent for one
quarter. Lets see what happens for the second and third quarter.


"XM completed another year of significant subscriber growth, despite retail
softness, and did so with continued cost controls, achieving positive cash
flow from operations during the fourth quarter," said XM CEO Hugh Panero in
a release.

Retail is not the way either of these companies are going to survive.
The only way they are going to make it is as a factory installed
option, until the car manufacturers start putting ipod connections in
cars (already starting to happen). How long will it be before you and
your passengers can plug your Ipod in your car and your passengers can
listen to audio, as well as video? All for the monthly fee of uh....
NOTHING!

Earlier this week, competitor Sirius Satellite Radio said it ended 2006 by
meeting its latest Q4 guidance with about 6,024,000 subscribers, which is an
82% increase over its 2005 year-end finish of 3,300,000 subscribers.

Again, what is the churn rate?

Both XM and Sirius will be reporting full Q4 results in February.

That should be interesting.

Jeremy>

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