Sirius XM hasn't even
been one for long, and yet we're already staring an impending price increase in the face. According to
Sirius Buzz, company support representatives are now confirming to the general public that a rate hike will go into effect starting March 11, 2009. They're encouraging current subscribers to lock in their current rates for three years in order to be grandfathered in, but should you choose not to, you'll likely be paying $2 more for additional subscriptions and a $2.99 fee for the online internet radio service. If there's any good news here, it's that the latter fee will give you access to that oh-so-amazing 128k "premium" feed, though we're still left in the dark about any future channel expansions stemming from the increase.
posted Jan 21st 2009 10:59AM
And this is why the FCC doesn't know squat about monopolies. Honestly, how have their costs risen?
This has nothing to do with monopolies idiot. If don't like the increase, then don't subscribe.
The rate increase is purely because the company is losing so much money that it is going to go bankrupt soon.
Yep, There's always commercial radio if you don't like the fees. (Maybe I should stress the Commercial part since that's all I ever hear on terrestrial radio these days.)
I thought part of the agreement under which the merger was approved was that they couldn't raise rates for 3 years or something like that.
They aren't raising the fees on the first radio, just additionals (I have two radios on the subscription) and the internet version. So technically they are not raising rates (eyes rolling). Of course the spelling and syntax of the READ linked article make me wonder if I'm interpreting it correctly.
I'll be canceling my additional radio and use one of the free online stations for music. I like Sirius, but I'm not bound to them.
Well, it does cost money to lay off duplicate employees..
http://www.nydailynews.com/entertainment/tv/2008/10/16/2008-10-16_after_the_satellite_radio_merger_some_si.html
Eliminate the competition, and then drive prices up!!
Good job FCC and SEC!!!
Never did re-new the service in my truck, I really can't see paying the money for this service when I can just jack my iPhone into my truck and listen to Pandora.
Same here, I canceled mine, definitely not worth the money, iPhone+car adapter+Pandora FTW!
Unfortunately, for those of us who drive into and out of cell coverage, that doesnt work. Where the heck is the buffered slacker radio app for iphone that was "coming fall 08"??
Yep, the only channels I listened to all died on November 12. I can't justify paying $20 a month for me and my wife when they don't play the music they used to, the DJs are annoying and talk over songs, and so many of our favorite channels are gone. And the CEO thinks he's in the right while alienating paying customers. I was against this from the start, and he's getting what he deserves with the cancellations. Had the merger not happened, XM would likely be nearing profitability by now, and SIRI's horrible overpriced contracts would be leaving them on the verge of bankruptcy. Now Mel's managed to ruin both.
Slacker is the winner in all this, they couldn't have timed the clearance of the G1 units on woot! any better. I'm constantly seeing people on the Slacker forums and at DigitalRadioCentral.com that are also former XMers that now listen to Slacker, and many are premium members and are getting additional portables.
Switched just posted an article today about Slacker radio for iPhone. I'm pretty sure it's out now.
@John: You should definitely try it out. I've been using the blackberry version for a few days and it is a great concept.
Frankly, given that it costs them MORE to stream online (bandwidth isn't free) than to stream to an additional receiver (unicast satellites= zero marginal cost), it never made much sense to me that one was free and one was $7. Sadly, at least for me, this move will cost sirius, because now ill finally get around to disactivating my third unit that has been sitting in the closet unused costing me $7 a month.
Not sure how, but when we bought our car and activated the 6 free months of Sirius, it never ended. Two years later, we still get satellite radio without ever paying for it.
Of course, the only time we use it is when we're in no mans land and there is nothing but 6 flavors of country music on at the same time.
Sirius service after the free period was over and not being charged for it was to prop their stock up.
If they cut all the people who don't want there service after the free period, the stock holders would have sold the stock running the company into the ground.
As long as Sirius showed they were providing service to X number of units, it kept them going. I know lots of people that kept getting service and never payed for it on Sirius.
Sirius trades today at .10 per share; I know, I own it. Can't get much lower w/o bankruptcy.
On the XM side, just call retentions and ask for the $77 a year deal. I have been doing this for the past 4 years. With a little googleing there is a rumor is a $60-ish deal that GM is sponsoring.
- the second is = of. Apparently, I speak English good.
correction: I speak English well, not good.
GenoMalice,
That was sarcasm you were correcting. When someone jokes about their typing error and then makes an obvious error, they are probably being self deprecating.
And correcting people's grammar in the internet got tired and toolish in the mid-1990s.
ON the internet.
If this goes down, I think I would give up on satelite and just pirate the eff'in O&A show. Wasn't the price thing part of the deal with the FCC and the trade commission people. That would be a deal breaker and I would then love to see the company crash and burn.
You can get O&A on audible. It's less $ per month than a sat radio subscrition. I think they also have a yearly rate of around $80.
Don't forget about Ron and Fez, noon to 3. And the Than and Than show!
yeah, because this is EXACTLY what they need. seriously tho, they do need a 128kbps stream. even the 64kbps "high quality" stream sounds like crap.
anyway, i assume us who re-paid for 2 years won't get a bill right? that would be stupid.
Maybe you need to look up the definition of grandfathering as stated in the announcement.
128 isn't really a "premium" stream though TBH. 64 sounds like crap, 128 is OK, and 192+ is decent enough considering.
@phoenix
i agree
Frankly, if this does turn out true, I am done with satellite radio. No point anymore. Hell, with my iphone I can pull in internet radio stations driving around in 3g networks just fine, sure they aren't the greatest quality, but neither is the crap XM is serving up.
Just called an canceled my 4 radios. I asked if they were going to increase in March. The woman stated she couldn't comment but they are always reviewing pricing policies (AKA YES THEY ARE). I asked again, would an increase per radio, and she slipped and said yes. So i cancelled the whole thing. Seriously, I can see rate increases of like 4 bucks from Comcast because they added a bunch of HD channels this year (here at least) and price increases at grocery / liquor stores as well, but when you have a fixed overhead, and your NOT paying other companies for your produced content beyond music royalties, increasing your prices is just wrong.
What about the price cap they agreed to?
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-284108A1.pdf
"The combined company shall not raise the retail prices for its basic $12.95 per month
subscription package, the a la carte programming packages, and the new programming packages
nor reduce the number of channels in either their current packages or new packages for at least
36 months."
Did you read the post and/or the read link?
They aren't raising the items they agreed to not raise.
Doesn't apply as they're raising the rates for online streaming and additional receivers, not the actual subscription package.
I'll cancel if they try and raise my prices.
I could have swore I read that part of the merger conditions made with FCC was that they would not raise rates for a few years.
well if i have to pay around 15 a month i am going to cancel my service. this angers me, I feel like contacting my local congressman.
Don't they have to roll over all that debt in a few months?
Better wait on buying a lifetime sub.
Yes, and that is when many analyst are saying that the company could fold unless someone buys it.
So If I read that correctly, the first sub will still be $12.95/mp, additional subscriptions will now be $8.95/mo (up fro $6.95/mo). Internet stream is no longer included with the standard subscription (at lower bit rate) and there is no longer a $2.99/mo upgrade to the premium stream, there will only be the option to add internet radio (with the premium stream) for $2.99/mo?
If so, I don't see that as a huge deal. Sucks to raise the price, but if its what Sirius needs to stay alive right now, I'd rather pay a few extra bucks and not have to go back to terrestrial radio.
Yeah you got it. Unfortunately people's reading comprehension is very low. The standard subscriptions rate, which is what was agreed to not change with the FCC, will still be the regular price. This only affect additional subscriptions and the internet radio.
Also to anyone comparing Sirius to services like Pandora, then you don't get what's great about satellite radio and should not waste your money. Sirius is all about the original programing like Howard Stern, Jason Ellis, NFL etc.
RED DRAGONS!
The price cap was on a la carte packages, mostly music/news packages, Best of, and the base package of $12.95. No mention was ever made of internet or multi-radio plans.
If they pull this stunt, I'm done with them.
yeah I'm not understanding why everyone is trying to say this is going against the FCC ruling for the fact that it is only on additional units. Not to mention the the fact that the FCC dragging its feet is prolly one of the main reasons sirius XM has to do this to survive. I especially love all the people talking about how its a monopoly and then list all their other options. Just because it uses a different medium to get you the music does not mean it is the only way. As long as their is other mediums of getting music Sirius XM will not be a monopoly.
This is completely bogus. I heard Karmazin on Stern saying they can't raise prices or people would leave. Stern would ridicule anyone who said it was anti-competitive. Now the ink is hardly dry on the merger and they are going to raise rates. I have 2 subs and use the internet feed. So that's an extra $60 / year. I normally wouldn't make a big deal on price increases, but they made such a stink about not raising prices. It would be ridiculous if they are allowed to do this.
WHAT A JOKE!
Mel said
"“We are absolutely not a monopoly,” Karmazin said heatedly at one point. “We are absolutely convinced this merger will be in the best interest of consumers,” he maintained. “This merger will give consumers more choice at a lower price and more importantly, less confusion.”"
All i see is a service that i would once happily pay $20 a month for and now hardly ever use. I knew Sirius was a joke of a service and now i am forced to live with it. And they want me to pay more for it. GET OUT OF HERE!
Forces to live with it how? You don't need it to live. It's not mandatory for your car to run. I can't seem to find a way that they are forcing you to listen...
I'm sure your radio can tun in one of thousands of radio stations all across the US. If you don't like the commercials, pay up or shut up. It's that simple. You either pay for your content in cash or ads.
Everyone have fun cancelling. There are thousands of sites devoted to how difficult it can be to cancel, or even get someone on the phone who speaks legible English.
I have a 3 yr contract and thought I might go ahead and drop them (I've heard enough Ad Council ads to last me an eternity). I sat on immediate hold for 22 minutes and finally gave up. And here I sit, still subscribed.....
When I canceled my XM subscription it took less than 5 minutes, with a minimum of hassle. They tried to offer me a reduced rate to stay, but even that wasn't worth it.