XM’s first quarter numbers are out, and what do you know? Its losses widened to nearly 6 percent, even though revenue is up. For the quarter, XM hemorrhaged $129 million, and their customer acquisition costs rose to $73 a subscriber (up from $65 last year).
And this is a business that deserves to be rescued by the DOJ and FCC? Is it just competition from other media or has XM (and Sirius) proved perhaps that over-spending on the programming side just isn’t good business? Or does it cost so much to "acquire" (or subsidize) new customers that this business model just doesn’t make sense.
To make matters more surreal consider Silicon Alley Insider‘s Peter Kafka’s statement that “XM Satellite and Sirius, stymied by regulators for more than a year in their attempt to merge, are doing their best to press their case. XM’s latest move: Turn in yet another lousy quarter, which proves that it can’t survive as a standalone company.”
Now there’s an interesting business strategy – keep losing mass quantities of money, and the government will be more encouraged to bail you out.
Or maybe consumers just don’t want to pay for radio.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
- Baby, Please Don’t Go - November 22, 2024
- Why Radio Needs To Stop Chasing The Puck - November 21, 2024
- Great Radio – In The Niche Of Time? - November 20, 2024
Leave a Reply