View Single Post
  #18  
Old March 21st 06, 03:59 PM posted to rec.aviation.ifr
external usenet poster
 
Posts: n/a
Default XM financial trouble



Matt Barrow wrote:
"Newps" wrote in message
. ..

XM knows exactly what it costs to attain each new subscriber and it is
much more than the $12 a month they are getting from existing customers.
The same goes for any business.



Vast majority of those costs are fixed (advertising, CS staff, data
processing).


Whatever. Any competent business can tell you what it costs to add a
new customer. It is always much more than retaining an existing
customer. Things like advertising and staff are expensive. It's a cost
well worth taking as it pays off in the long run.