Originally Posted by
homer985
XM doesn't provide the radios to GM... GM buys them from XM suppliers.
In return, GM gets a guarantee payment from XM (which XM has already paid for the term of the contract... but they are amortizing it monthly through the life of the contract).
GM also gets several payments for the installation... first, they get an installation commission -- for every installed vehicle, once it is sold. Second, after the trial period is over, for those that "takeup" the service, GM gets a subscriber bounty that is paid 50% if they takeup the service and the other 50% if they continue the service past the first 30 days.
Plus, XM has some royalties that are paid to the chipset and other manufacturers at the time the vehicle is sold as well..
Altogether, it is believed that GM gets approximately $100 or so, for every installed car that is sold. The charge is AFTER it is sold, not when it is manufactured.
GM also takes 50% of all revenue generated by "their" subs.
So if GM sales go up, so do costs to XM
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