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Churn Rates Highlighted by Radio Advocates

Churn Rates Highlighted by Radio Advocates

A PR firm that represents several radio groups says customer churn “continues to be a problem” for satellite radio.
Brainerd Communicators quotes financial statements from XM and Sirius as estimating their churn rates as 1.4% per month or 17% per year.
“Both XM and Sirius call that number ‘low’ but let’s compare those numbers to cable, the analogy that the satellite folks themselves invite,” the company’s Michelle Radvansky said in an e-mail to business media. ” Cablevision’s digital cable churn is 0.733% per month — just 8.8% per year – so that’s 17% vs. 8.8%.”
She said almost 20% of people who chose satellite radio cancel the service and that “customer rejection rates are even less encouraging; XM says that 6 out of 10 people who buy a car with a factory-installed satellite radio accept the service — that’s a 40% rejection rate.”