Thursday, February 16, 2006

High costs of getting satellite subscribers

According to a report in the Wall Street Journal, the acquisition cost of each of the subscribers to XM Satellite Radio was an astounding $US141 in the last quarter. It's likely to be similar at Sirius* as the two companies are locked into a ferocious battle to sign up users. This should make magazine circulation directors everywhere feel a bit better. On the other hand, that's less than a year's subscriber fees at US$13 a month. So maybe don't get too cocky.

[*Update: Sirius's costs in the quarter were US$113]

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