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SpaceX/Starlink have done effectively no marketing spend to get those leads into their funnel. Subscriber acquisition costs (SAC) for home broadband and TV are
by jlaporte 6y ago
SpaceX/Starlink have done effectively no marketing spend to get those leads into their funnel. Subscriber acquisition costs (SAC) for home broadband and TV are very high, and due to churn doesn't necessarily even translate into net subscriber adds. Those numbers are good by any measure.
One representative example, Subscriber acquisition costs for Dish network:
"DISH TV SAC was $822 during the year ended December 31, 2019
compared to $759 during the same period in 2018, an increase of $63 or 8.3%." [1]
"We lost approximately 511,000 net DISH TV subscribers during the year
ended December 31, 2019 compared to the loss of approximately 1.125 million net
DISH TV subscribers during the same period in 2018. This decrease in net DISH TV
subscriber losses primarily resulted from a lower DISH TV churn rate and higher
gross new DISH TV subscriber activations." [1]
[1] https://www.marketscreener.com/DISH-NETWORK-CORPORATION-4870/news/DISH-NETWORK-MANAGEMENT-S-DISCUSSION-AND-ANALYSIS-OF-FINANCIAL-CONDITION-AND-RESULTS-OF-OPERATIONS-30018399/ https://www.marketscreener.com/DISH-NETWORK-CORPORATION-4870...
- csours 6y agoDoes SAC include new subscriber discounts?
- jlaporte 6y agoYes. From the same Dish Network 10-K: "Subscriber Acquisition and Retention Costs We incur significant upfront costs to acquire subscribers, including advertising, independent third-party retailer incentives, payments made to third-parties, equipment subsidies, installation services, and/or new customer promotions."
- justapassenger 6y agoElon’s Twitter is very much marketing. He not only has over 30M followers, but also each of his statements and companies get disproportional media coverage. Marketing isn’t only buying ads.