Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Brian Kraft – Credit Suisse.
Brian Kraft – Credit Suisse
Thanks. Can you comment on the success that you have seen so far with the video product, and also whether you are getting additional interest from your OEM partners?
Mel Karmazin
The video product is new. Obviously you can see the Chrysler vehicles in the showrooms. The early reaction has been very positive. We don't have enough subscribers to have conducted any research yet to determine what they like and don't like, but they are getting Nickelodeon, Cartoon Network, and Disney, live television in the backseat of the car.
From everything we are hearing from Chrysler, they are happy with it and they believe their customers are happy.
Brian Kraft – Credit Suisse
What kind of ARPU lift are you getting from that product?
David J. Frear
Brian, the numbers are too small at this point to be measurable across over 7 million subscribers. I think that's probably a question that would better fit sometime next year. The cars are shipping and they are selling through to customers, but out of 7.6 million subscribers it's just not material.
Brian Kraft – Credit Suisse
On an individual customer basis, is there a pricing lift?
David J. Frear
Well yes, they pay for the video products so on an individual customer basis there's a lift; but again, in the overall results it's very small.
Operator
Your next question comes from Robert Peck - Bear Stearns.
Robert Peck - Bear Stearns
OEM was obviously very strong. David, I was wondering if you could maybe give us a little more color around the OEM gross adds and maybe across the sub base as well. What percentage of gross adds and subs today are still on the dealer lot?
David J. Frear
It's an inventory concept so it's probably easier to answer it from the total sub perspective. If you look at last year, you generally found that number in 2006 in the 8% to 9% of subscriber range. As the OEMs accelerated their penetration as we've gone through 2007 it has been working it's way up a little bit. It was around 10% of the base at the end of June and it's a little bit more than 11% at the end of September. So, we've picked up about another 1% in the quarter.
Mel Karmazin
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