Tuesday, May 15, 2007

Interesting Happenings at XM411.com

May 15, 2007
Tyler Savery

XM411.com has long been a favorite site of XM Satellite radio subscribers. The site is well run, and the forums are easy to access, discuss issue, share opinions, and simply chat about all things XM.

It is not hard to imagine that one of the hot topics on the forum is the suspension of Opie & Anthony. Simply stated, there seems to be a great deal of outrage associated with the events of today. See the thread HERE

Posters in the forum seem to be announcing that they intend to cancel. Some report getting an offer from 30 days to 90 days of free service, and for a few that seemed to calm their anger. That set off an entire new debate that called accused these people of taking the free service as "selling out". Outright cancellation of XM until O & A rerturned seemed to be the focus of many until it was pointed out that when they reactivate, the activation fee is $14.95, and thus, the listener would in effect be paying XM $2 more than the regular monthly rate.

What we have here is an example of initial outrage, and strategizing by a group of dedicated fans to carry an impact on the ultimate outcome. How successful these efforts will be is unknown, but one must consider the dedication of fans of shows sush as O&A, Stern, Bubba, ron & Fez, etc. for whatever reason, these fans seem very capable of making things happen.

So, what are the potentail ramifications?

Will churn be imnpacted to a major degree?

Will revenue take a hit?
Will reactivations be a cash cow of sorts?

Will the headlines create a buzz around XM that gets consumers motivated?

Only time will tell, but this news will not simply fade away.
Position - Long XM

5/15/2007 10:58:00 PM

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