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Sirius radio = fail (a rant)

Discussion in 'Anything goes' started by Rusty Shackleford, Aug 27, 2010.

  1. Rusty Shackleford

    Rusty Shackleford Active Member

    I'm no trouble. In the three years I was a customer, I called them one time -- to renew, two years ago. And I'm not costing them any money. Their satellite is already in space, it's already beaming a signal at my car. They've already paid all their talent, and paid for licenses for their music. Whether I'm a customer or not, they're paying all those bills. I offered them $100 and they told me no. It is found money, because their operation is exactly the same in every way with or without me, the difference is that with me they've got $100 extra dollars.
     
  2. crusoes

    crusoes Active Member

    If you don't want it, don't buy it.
     
  3. Azrael

    Azrael Well-Known Member

    By that logic, everything in the world should cost what the customer thinks it costs.

    They've already paid their talent? They're paying their talent, week in and week out. And their producers and programmers and technicians and accountants and lawyers and publicists and on and on and on. They're paying those people you talked with on the phone, too.

    They pay licenses every time they play a song.

    How much do you think those satellites cost? And what were the costs to launch them? How much debt did the company take on to do those things? They certainly didn't pay cash to start the company, did they? So there's debt to service. Lots of debt.

    And some slender profit to make to plow back into the business.

    Again, it's a service. And while it may seem like their costs have been recovered they have not.

    Their costs are ongoing.

    They're asking for $8.33 a month.

    You're offering $4.16.

    They clearly believe that there's a point below which an additional 50% discount costs them more than it's worth.
     
  4. BYH

    BYH Active Member

    And the playlists REALLY suck now.
     
  5. BYH

    BYH Active Member

    Aren't we hurtling towards that day anyway?
     
  6. Rusty Shackleford

    Rusty Shackleford Active Member

    Again, I agree with you. Macroeconomically, what you said makes sense. But microeconomically, I offered them money and they denied it. Their service is exactly the same with or without me, but with me they've got $100 extra to play with. Why not take that?
     
  7. Azrael

    Azrael Well-Known Member

    I'm not so sure. Having bred a generation of computer users who think everything should be free, I think we're seeing the beginnings of some correctives (i.e. newspapers/music) in how business is done. The "market" and the idea of "market" are changing - because if everything is free, there is no "market."

    There may come a time when all prices are decided by the individual, but businesses still need to be able to set guidelines that allow them to stay in business.
     
  8. Rusty Shackleford

    Rusty Shackleford Active Member

    That's kinda what happened. Sirius set its guideilne. I disagreed with it and walked away because I can get music elsewhere. Seems to me that I come out much better in this than they do, when it could have been mutually beneficial. I still get music, just not from them, plus I get to keep my money. They lose a customer, get bad-mouthed online and don't have my money. It just seems like bad business to me.
     
  9. Azrael

    Azrael Well-Known Member

    Their service is not exactly the same. Their service now has one more user. And that user is paying half of what the service is worth.

    Because you'd be getting the service for less than it costs them to produce it. Over time, they'd have taken $100 in exchange for a minimum of $200 worth of services.

    Multiply that by another million users.

    That's the route to bankruptcy.
     
  10. Azrael

    Azrael Well-Known Member

    They lose someone who was unwilling to pay what the service costs.
     
  11. Iron_chet

    Iron_chet Well-Known Member

    In the scenario if Sirius gives it away for $100 they devalue the rest of their product and eventually nobody pays full price.

    I hear this arguement all the time in the airline industry.

    "well the plane is leaving with an empty seat...they should sell it to me last minute for $50"

    The short term gain is not worth wrecking your yields.
     
  12. Armchair_QB

    Armchair_QB Well-Known Member

    Not enough Night Ranger?
     
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