Originally Posted by kschoenberg
If he brought millions of subs he more than paid for his contract. The company certainly has other problems...but signing a contract that made them money was not one of them. Sirius said that they would need 1 million incremental customers from Stern to break even...they did far more than that.
You also do understand while termed a merger...Sirius purchased XM? XM's investors wanted out...Sirius was growing at a far faster rate and would have surpassed them.
I said the whole business model of spending money that neither XM or Sirius had was a sure fire way to ruin. I've been saying that since Sirius paid big bucks for the NFL, Stern, NHL, etc..And since XM paid $700+ mil for MLB, and millions for NASCAR, etc.. No one watches Hockey on TV, yet both companies have spent MILLIONS on the NHL contract for the radio... Makes me wonder what the hell the brass was thinking.
Would both services have as many subs as they do now without all these big ticket signings. including Stern? Absolutely not.. But then their expenses would be $100's of million of dollars less too.
As far as Sirius surpassing XM, so what? Both XM and Sirius were losing money on every sub anyway. The pissing match between Sirius and XM and who had more subs always baffled me.
If you and others here want to believe Sirius when they said all they needed was 1 million subs to 'break even' from signing Stern, that's cool.. But remember both XM and Sirius played and continue to play many games when the count their 'subs'. Many subs don't pay the full amount per month, there's all sorts of deals and discounts.. Many get the service for free. Sirius always counted 'unsold cars' as subs.. And on and on..
But again, IMO, since Sirius, XM and SXM haven't made a dime of profit and have been on the verge of bankruptcy for years, and continue to be, the service and their signings are in no way a success.