Tuesday, February 21, 2006

Should XM and Sirius Lower Their Prices?

Uh, they could start by not paying celebs hundreds of millions. And if they don't make any money off advertising, the customer ARPU is the only place where the majority of the $$ will come from, so I'm not sure cutting your price is a way to profitability. Of course if XM just buys Sirius, then hike away as there's no other game in town (sorry Motorola, I'll see it to believe it.)

Unlike us in the wireless space, we can sell additional products/services/equipment. Buy a radio and pay your bill and that's it in the satellite world.

Doesn't take a MBA to figure this one out....

Should XM and Sirius Lower Their Prices?


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