We've sort of flat lined at 50 cents for the last hour and a half......I hope that doesn't mean we're dead.
yeah what the heck does that mean .499 .499 .4999
I just got to thinking about cell phone, cable TV, Broadband service, etc. All these are now considered to be necessities and are slowly creeping down in price
Metro PCS has a $40/mth nationwide unlimited calling, Prepaid wireless is going to unlimited as well. Cable companies are having to compete with Sat, wireless and phone companies bringing digital TV to the home. I am able to get extended basic on Dish, 2 DVRs and local channels for $43/mth. (Granted they had to beat the other offers to keep my business) I get my broadband for $39/mth.
So the question is could SXM box out the competition and get to 60 to 80 mil subscribers quicker at say $5 or $6 per mth as opposed to struggling to maintain approximately 20mil at $13/th? It is a price elasticity question and I am sure they have run the models, but just wondering what the thought is from investors on this board.
Ok, this is my deal.
I actually don't subscribe to Sirrius because I ride a bike as my commuting vehicle of choice. In my house I listen to my choice of 3 Public Radio stations which give me all the news, talk, folk, jazz, bluegrass, and blues music that I need. AND because of the subscription price of the Sirrius service.
Now, if the subscription was say......6 or 7 bucks a month, and I could pull the content off of the internet, I would be a subscriber.
So, you're right! I know I'm not alone in my frugality. There are millions of potential customers that might come on board if the rate was lower and the distribution methods were expanded.
The question is, would Sirrius make any more profit by doing these things.
Brad.....
Here is where caution is required. If auto sales and production step up substantially, it will carry a negative impact on EBITDA because of the costs. Don't forget, that a promotional subscriber costs money, and the company needs that sub to stay on for a year to see a return on their investment.
EBITDA should be over $400 million without an issue. It could even push $500 million. Remember, production was slowed substantially in Q1 and Q2. This helped EBITDA. That situation will not exist in Q3 and Q4
Tyler Savery
Satellite Standard Founder