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Can someone explain this? I sure can't
Amobi expects Sirius to add 200,000 net subscribers in the fourth quarter, and 300,000 users in all of 2010.
http://www.businessweek.com/technolo...115_002716.htm
With new car sales recovering, increased new car penetration, increased used car penetration, and exciting new products like the SkyDock and the new table top wifi radio, plus I am sure more to come next Xmas, how could he predict only 300,000 new users in 2010?
I'll take the 300,000 subs in 2010. Collectively, he's saying 500,000 subs. So let's do the math. 500,000 subs x ~15 / sub x 12 months x 0.70 = $63 MM to bottom line. It's all good.Quote:
Originally Posted by MUSCLE13
Man I just can't agree with Amobi's numbers. I believe the used car market is being ignored by the street and it will gradually become just as important as the new car market to sat radio.
Good feelings aside, investors may need to settle for a far slower pace of growth than the company has had previously. "Expectations have come down," says Standard & Poor's analyst Tuna Amobi. "This company is not going back to these levels of double-digit growth."
Yep, it's time to start that marketing campaign; guess they figure they have to do everything they can to get subs from now on. They went years without advertising hardly any at all, and they still did ok, now it's time to pull out some $ and put the hammer down to pull those subs in.