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.”
Or maybe consumers just don't want to pay for radio.