XM Subscribers Top 4 million

[Chris Gohlke]

<div class='os_post_top_link'><a href='http://news.com.com/XM+subscribers+top+4+million/2110-1041_3-5708619.html?part=rss&tag=5708619&subj=news' target='_blank'>http://news.com.com/XM+subscribers+top+4+million/2110-1041_3-5708619.html?part=rss&tag=5708619&subj=news</a><br /><br /></div><i>"XM Satellite Radio's subscriber base has topped 4 million, the company said Monday. The company has added 1 million new subscribers in five months, XM said. It predicts the number will grow to 5.5 million by the end of 2005. At present, XM said it has nearly 70 percent share in the satellite radio market. "It took 23 months for XM to reach its first 1 million subscribers. It took eight more months to reach our second million, six months to hit 3 million, and less than five months to exceed 5 million," CEO Hugh Panero said in a statement."</i><br /><br />I'd be curious to see what the turnover rate is on subscribers. I think that number could give a better indication of the future of this market.

[Neil Enns]

I'd be curious to see what the turnover rate is on subscribers.

Ask and ye shall receive. Churn was a very respectable 1.6%. Their Subscriber Acquisition Cost was $52.

Neil

[Neil Enns]

Oh, and to contrast this with Sirius, (future) home to Howard and Martha:

Churn: 1.3%
SAC: $190, down from $248 a year ago, and (they hope) down to $145 by the end of their fiscal year.
Total subscribers: 1.1M

Neil

[Chris Gohlke]

Wow, the churn is much lower than I would have thought. Sirus definitely needs to work on their subscriber acquisition cost though. I imagine they are both spending roughly the same on ads and XM just has a bigger base to spread it over.