They made a few mistakes with their business model when they started up, like paying Howard Stern a fortune. However, Howard didn't pull in enough listeners to justify his salary. They depend on advertising dollars and advertisers pay them according to how many subscribers they have. So, they would rather have you subscribe for very little than to lose you completely. It doesn't cost them anything to activate your radio and having you as a subscriber means more revenue for them.
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How we spend our days is how we spend our lives. We make a living by what we get, but we make a life by what we give.
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