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doberman007
February 24th, 2006, 07:59 AM
You stated:

"It may depend on how you measure it. But I think Walmart would be up
there after Best Buy.

Who do you think would be bigger (at retail, of course)?"

Here is what we know:

1. For the full year NPD had SIRI at 55% and XM at 45%.

2. When Wal Mart, Sam's Club and Costco are added into the mix, the
percentages change to 52-53% SIRI and 47-48% XMSR. For the sake of
discussion lets call it 52.5% SIRI and 47.5% XMSR.

3. You are trying to argue two points which do can not exist together.
Your first argument is that XM outsells Sirius at Wal Mart, Sams, and
Costco. I agree with this assertion (altogugh not to the extent of 80%
to 20% or even 70% to 30%). The numbers clearly illustrate this. Your
second assertion is that Wal mart is the second biggest SDARS retailer.
I do not agree with this

Now lets assume that the full year is represented by 100 Radios
captured by NPD:

A. SIRI would have 55 radios sold

B. XM would have 45 radios sold.

In order to get the percentage to swing by 2.5% to account for Wal
Mart, Sams Club and Costco, How many radios would be sold, and what
would the split be:

If 100% of these were XM, 5 radios would have been sold at these
outlets, or 4.76% of the sales. In effect this would represent the
smallest possible contibution of Wal Mart on a percentage of SDARS
sold, and the largest possible split in favor of XM on a percentage of
sales basis.

The other extreme would take us to a scenerio where Wal Mart seels 99
units (the highest possible number they can sell and be number
2.....but the #1 store MUST account for all 100 of the NPD sales). In
this scenerio, as unrealistic as it is, out of the 99 units Wal Mart
Sells, 49.4 would be SIRI and 49.6 would be XM. This would give you a
52.5% to 47.5% split.

I think you can see where this is going.

You can not argue that Wal Mart is the second largest retailer of SDARS
AS WELL AS that the split between XM and Sirius at Wal Mart is so
heavilly weighted towards XM. The numbers can not support both of your
arguments.

The bigger the gap in share for XM at Wal Mart, the lower Wal Mart is
in the sales rankings.

The higher you put Wal Mart in the sales rankings, the lower the gap in
the split in their sales between XM and Sirius becomes.

Bill
February 24th, 2006, 01:59 PM
Question. Why does XM outsell SIRI at Wal Mart? Is it because of some
marketing arrangement with XM, or is it just that average Wal Mart
customers are not big fans of Stern and NFL?

doberman007
February 24th, 2006, 01:59 PM
Bill.....

Up until very recently it basically boiled down to selection. The XM
selection at Wal Mart was better than for Sirius.

Sirius had only the Sanyo and the stream Jockey there last year. This
year they did begin to improve the selection, and it looks as if it
will improve further for Sirius.

XM this year did ad themselves to the "activations" kiosk at Wal Mart,
and has also taken out advertisements on wal Marts in strore radio
network.

Price point is also a factor. XM does have a less expensive price
point with the Roady XT. Whether or not Sirius will match that price
point is yet to be seen.

BW Kernighan
February 24th, 2006, 02:59 PM
"Bill" <bkeating@optonline.net> wrote in message
news:1140813788.195725.119120@z34g2000cwc.googlegroups.com...
> Question. Why does XM outsell SIRI at Wal Mart? Is it because of some
> marketing arrangement with XM, or is it just that average Wal Mart
> customers are not big fans of Stern and NFL?

As Dobie indicated, price point is a big deal. Just before Thanksgiving,
the Roady2s were cut to $28.34, which is a perfect price point for Walmart
customers who are Christmas shopping -- but may account for the sluggish
activations after Christmas, as well (gift recipients who weren't all that
excited about the monthly fee). The XT sells for the same price as the
Sirius Visor at Walmart -- but the XT is a much more attractive form factor
to a lot of people.

But XM has always had the better presence at most Walmarts. Walmart has
tried to give Sirius a better presence since last year, when they allocated
them the same amount of display space -- still, they were stocking a lot
more XM product.

Personally, I have long believed one factor is that Sirius receivers
typically cannot receive live signal inside Walmart stores, while XM's can.
As a result, the XM displays tend to work while the Sirius displays
typically do not. I've seen store personnel trying to rig something up to
get the Sirius working, and they ended up with a Sirius boombox in the
camera department as their display unit.

ThongSmoker
February 24th, 2006, 08:33 PM
>
> 3. You are trying to argue two points which do can not exist together.
> Your first argument is that XM outsells Sirius at Wal Mart, Sams, and
> Costco. I agree with this assertion (altogugh not to the extent of 80%
> to 20% or even 70% to 30%). The numbers clearly illustrate this. Your
> second assertion is that Wal mart is the second biggest SDARS retailer.
> I do not agree with this
>

umm, you are completely wrong. Those two point CAN exist together. WalMart
can be the 2nd biggest (I'm not saying it is, but logically, it can) SDARS
retailer and only move the overall percentage slightly. Wal Mart can be the
2nd largest while only controlling a small fraction of the market (0.1%)

DWJ
February 24th, 2006, 09:59 PM
"Bill" <bkeating@optonline.net> wrote in message
news:1140813788.195725.119120@z34g2000cwc.googlegroups.com...
> Question. Why does XM outsell SIRI at Wal Mart? Is it because of some
> marketing arrangement with XM, or is it just that average Wal Mart
> customers are not big fans of Stern and NFL?


Visit a Wal-Mart.

That should answer your question.

Yikes.