This excerpt taken from the SIRI 10-Q filed Nov 12, 2008.
XMs inability to retain customers, including those who purchase or lease vehicles that include a subscription to its service, could adversely affect its financial performance.
XM cannot predict how successful it will be at retaining customers who purchase or lease vehicles that include a subscription to XMs service as part of the promotion of its product. Over the past several quarters, XM has retained approximately 50% of the customers who received a promotional subscription as part of the purchase or lease of a new vehicle. However, that percentage fluctuates over time and the amount of data on the percentage is limited. XM does not know if the percentage will change as the number of customers with promotional subscriptions increases.
XM experiences subscriber churn for both its self-pay and its non-promotional customers. Both XMs inability to retain customers who purchase or lease new vehicles with its service beyond the promotional period and subscriber churn could adversely affect XMs financial performance and results of operations.