Total net subscriber loss for Q1 2009 predictions

[SiriusBuzz]

I agree, that is a problem, but thats not my direction.
I said WITH CONSENT. They call in, say hey, i heard if i just bought a new car, and it had a sat radio in it, and i send you a copy of my invoice, you will turn on my radio for 1 month free... etc... Just one example of how they could do it.
See charles, thats with consent. Like agreeing to buy a new car with it turned on. No difference.

I know what you said, I was guessing what Tyler was thinking. Getting that consent is a hurdle... even your process isn't easy to do for end users and its even more work for Sirius XM to handle those calls. Lets be honest, people are not going to pick up the phone and call... at least not in big numbers. Maybe 1 in 10 as apposed to 10 in 10 if you could just turn it on.

[TSavery]

Thanks for the response Tyler. Can you answer one more point. You said the FCC would have a problem with "turning on radios with no subscription". Dont they do this with every car sold anyway? they are "turned on with no subscription. or do they avoid this by counting every car sold with a sat radio in it as a sub. They dont, so.... Im confused.

Promotional subscribers are part of the purchase of the car. This differs from a deactivated radio just sitting there

[relmor2003]

Promotional subscribers are part of the purchase of the car. This differs from a deactivated radio just sitting there

So your saying, the FCC mandates that "deactivated radios" cannot be turned on without them actually sending in money for that subscription. If im reading you correctly this is what you are saying. Correct?

[TSavery]

So your saying, the FCC mandates that "deactivated radios" cannot be turned on without them actually sending in money for that subscription. If im reading you correctly this is what you are saying. Correct?

The FCC mandates that SDARS is a subscription based service. If Sirius XM takes turning on inactive radios for free too far, the FCC could receive complaints from organizations such as the NAB.

Simply stated, SDARS needs to be a subscription service. If they delve too far into non-subscription activities, they can open up a can of worms.

At this point in their exisence, it does not make much sense to push that envelope, or "test out the gray ares"

[relmor2003]

The FCC mandates that SDARS is a subscription based service. If Sirius XM takes turning on inactive radios for free too far, the FCC could receive complaints from organizations such as the NAB.

Simply stated, SDARS needs to be a subscription service. If they delve too far into non-subscription activities, they can open up a can of worms.

At this point in their exisence, it does not make much sense to push that envelope, or "test out the gray ares"

That still doesnt make any sense to me. I understand it, i just dont understand it. They are allowed to INITIALLY offer it for free, but its not for "free" because these automakers actually PAY Sirius when it activates(at least in most contracts, correct?), so basically thats how they avoid it the first time. ok, i get it. Nice. finally.
What confused me was the payment to Sirius is an avoidance of breaking the rule on the initial trial. Got it.
Then simply offer huge discounts to retail customers equivalent to the cost of whatever your standard free sub trial run is on most car promotional subs. see wheres theres a will theres a way tyler, sirius isnt interested in making this happen right now. or they just cant think of a way. they need to call me. seriously.

[TSavery]

That still doesnt make any sense to me. I understand it, i just dont understand it. They are allowed to INITIALLY offer it for free, but its not for "free" because these automakers actually PAY Sirius when it activates(at least in most contracts, correct?), so basically thats how they avoid it the first time. ok, i get it. Nice. finally.
What confused me was the payment to Sirius is an avoidance of breaking the rule on the initial trial. Got it.
Then simply offer huge discounts to retail customers equivalent to the cost of whatever your standard free sub trial run is on most car promotional subs. see wheres theres a will theres a way tyler, sirius isnt interested in making this happen right now. or they just cant think of a way. they need to call me. seriously.

If you offer huge disconts, your paying customers will want to have the same deal. They will have diliuted the value of a subscriber substantially.

Where there is a will there is a way, but we are looking for a profitable way are we not?

It boils down to risk vs. reward. Lets say they have 20 million inactive radios and commit $20 million to market to those people. They get are successful 5% of the time and bring in 500,000 new subs. It takes 3 months to recover that $20,000,000. Is it worth while? Perhaps. What isf they would have gotten 100,000 subs anyway with no expense. In that same 3 months you are almost $4,000,000 ahead of the game.

Turning on the radio is the easy part. Each new customer places demands on call centers, etc. It is a fine balance, and they look at this stuff all of the time.

[tim wallick]

Tyler,

I thought in the original order for the sdars license the fcc left this issue up to the service provider and stated they could offer either type service. free or either subscriber and fee based i have never read where the fcc changed their position in this subject area and on the cc Mel said we maintain our right to do that.

i understand where your coming from on the content subject and the problem it could create if uncensored, but buy operating a limited always on service which covers a broad section of your material its really a great advertising platform tied direct to the largest captive listening market segment there is.

insert Sirius ad here explain a bit on the reactivation process using some top talent and other consumers then offer up a website address for understanding the enite reactivation of this auto or other user devices.

as i understand it copy rights fee for the music used on promotional channels are exempted from payment also.

[relmor2003]

[QUOTE=TSavery;32177]If you offer huge disconts, your paying customers will want to have the same deal. They will have diliuted the value of a subscriber substantially.


This is not a concept companies worry about. I disagree with this statement. I hear you about the fine line with the call center. Etc.. But 12.99 a month and you take 2 maybe 3 calls in this customers entire existance, i think they will make it. If your offering deals to acquire new customers, existing customers always get screwed. Look at Qwest, DirectTV, etc... All are offering incoming customers discounts, free services(call waiting, etc... a channel whatever) to come over.

So now that weve established...
1. FCC only doesnt want unconsented radios turning on...
2. Giving away free months is POSSIBLY violating FCC mandates on their business operations.
3. Dealer involvement is tricky, and encounters accouting problems.
So So according to Tim its not an FCC problem, its not a problem based on "customer fairness" as this post address's, and the content issue is easily solved by a consent agreement. One letter. One email, one phone call.
So offer new customers 1 month free best of.... anything. Cheaper first 3 months(remember this can be tied to simply the retail sector, and people who just bought a car that has a dead radio. Customers finishing a promo sub already had free months. Retailers who just bought missed out. O well. Good for them. Run it until your retail numbers are up. ANd the economy improves. This is all basic marketing 101. Easy way to forecast potential losses vs. potential gains. Rules of marketing are simple.
1. Once you acquire a full paying customer, youve won. Never offer this customer discounts.
If this customer calls to cancel after years of listening, then offer discounts to keep them.
2. If you get a lower rated customer, make sure its temporary. Never allow full time access, for partial price, full time. Always have a way out on any promo. This will avoid your worried about the number type 1 customer.
Now your reasons for lowering rates on used car buys(send in invoice to prove it, or new retail purchase(coupon for ________________ fill in the blank wont work because of angry previous customers, it wont make them money, as you are argueing that the number of customers who would already have signed up regardless of the discount would come over anyway, then you stop the promo. If it isnt working, you dont run it anymore. Nothing ventured, nothing gained. Or run the used car idea(send in invoice idea) with a time limit on it. Run it for 3 months. If its working, extend it, if its not, then forget it. Nothing ventured, nothing gained. Right now they have only the Iphone app as new ways of adding subs. They have nothing else as of 5/9/09. And as of right now, they dont even have the iphone app.