I see the question why does SiriusXM do subscriptions the way they do - you have to call every time it is ending to get a deal. There are so many ways to say why but I will pick three.
In car sales by far, not even close more are sold by negotiating than simply putting a price on it. It's because customers don't believe it is the best price and most often they are correct is not. is a compromise of not haggling. For some the difference in price is worth not haggling. Some dealers have tried the one best price method and you will find rarely does that stick as the policy.
Many in the field of delivering entertainment do it the same way. Want the best price from DISH? Often you have to call to get it though sometimes they advertise it is available such as the current customer deals. But you still have to call. Directv? 100% you have do just about what you do with Siriusxm. Internet from Spectrum, you bet I have to call every six months (sometimes a year) or else I pay full price.
I will say in some instances a renewing agreement is not needed as it is with SiriusXM, but really that is not a big deal. If you forget you can call and end services and pay for the say or so you had.
And the most persuasive reason? By far the most subscribers, nearly 30 Million at anytime in the history of either the two separate companies adding their subscribers together or for the new company and they continue to have a rosy outlook
FIRST QUARTER 2019 HIGHLIGHTS
SiriusXM operates two complementary audio entertainment businesses — our SiriusXM business and our Pandora business. Further information regarding these two segments will be contained in the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2019. The pro forma financial and operating highlights of these two segments are presented separately below and exclude the impact of share-based payment expense.
SIRIUSXM 1st Quarter 2019
- Self-Pay Subscribers Top 29 Million. SiriusXM added 131 thousand net new self-pay subscribers in the first quarter to end with nearly 29.1 million self-pay subscribers. Total net subscriber additions in the first quarter were 132 thousand, resulting in more than 34.2 million total SiriusXM subscribers at the end of the period. Self-pay monthly churn for the quarter was 1.8%, flat compared to the first quarter of 2018.
- SiriusXM Revenue of $1.5 Billion. First quarter revenue of $1.5 billion grew 8% compared to the prior year period. This growth was driven by a 3% increase in SiriusXM subscribers and 4% growth in SiriusXM's average revenue per user (ARPU) to $13.52.
- Gross Profit Grows 8%. Total cost of services at SiriusXM increased 9% to $569 million in the first quarter, driven primarily by higher revenue share and royalties. Gross profit at SiriusXM in the quarter totaled $926 million, increasing 8% over the first quarter of 2018, and produced a gross margin of 62%, approximately flat compared to the prior year period.
