Sirius XM confirms rate hike coming
If you love your Sirius or XM satellite service, now is the time to re-up your subscription for another three years. The newly unified Sirius XM is charging $2 for additional subscriptions and adding another $2.99 fee for Internet radio. The Internet radio feature does add a 128k premium feed option, which is nice. Subscribers can avoid the price hike by locking in their service before March 11. The increases are seen as a way for Sirius XM to raise money to fund its massive piles of debt. The satellite radio conglomerate wins either way; if you rush to lock in rates, the company gets an immediate cash infusion. If you wait and subscribe for more money, your individual subscription will bring in more money than it did before. We're obviously not too thrilled about this news, especially since it comes on the heels of a competition-killing merger. But to be fair, the two companies kept prices steady for many years, and that's not sustainable forever.[Source: Kicking Tires]
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Reader Comments (Page 1 of 6)
Dude 10:39AM (1/22/2009)
I guess this the first "benefit to the consumer" from the merger.
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Randy 11:16AM (1/22/2009)
No kidding!
And I have an install tomorrow at 1PM. I guess I'll lock in the price now for as long as I can! I don't see it getting any less expensive!
toonces 11:29AM (1/22/2009)
I guess its time to call & complain to hopefully get a better rate. I got 10 months for $79 last time. I miss ethel. Anyway Ron & Fez noon til 3.
notYou 1:00PM (1/22/2009)
Here, here!
Autoblog: "But to be fair, the two companies kept prices steady for many years, and that's not sustainable forever."
Why not? What capital expenses have increased?
Oh, "none" you say? "The increases are seen as a way for Sirius XM to raise money to fund its massive piles of debt."
Ahhh, get people to sign up at attractive rates that are unsustainable, then surprise-soak the customer base for the difference. Brilliant!
Except, there's a reason why I canceled my XM subscription this year: not worth the price.
TomdeTomTom 2:45PM (1/22/2009)
Thanks XM! First you kill all the good Sirius stations, now you raise the price on me, then you slowly will add advertisements so you can charge another premium on us. Goodbye forever. in March I'm gone.
Satellite radio had it's merits as a way to find new music, but that luster is being overrun by costs.
Samurai Jack 9:34PM (1/22/2009)
One expense that increased was the money the record cartels charge broadcasters, including Sirius/XM. These increases hit internet radio especially hard. That's where the true evil lives in this equation.
In the interest of full disclosure my Sirius subscription expired at the start of the year. I'm not going to renew it. I enjoyed the programming but it's a luxury, and in difficult times some luxuries have to go by the wayside. I can use my iPod for commercial free music.
Cajun5 8:39AM (1/24/2009)
Some of us bought the lifetime subscription, hooray
So raise away and make the new guys pay
We need Sirius tomorrow and today
We need the music, the news and the screen display
So please make them stay
Beverly 10:07AM (1/24/2009)
Are they going to be aorund long enough to renew my subscription?? I am supposed to renew in February and had a phone message from them last week. I love commercial free music.....I'll switch channels form one station to another everytime commercials come on....but now even on my satellitte 60's & 70's stations have commercials. Then I heard they may be one of the companies for 2009 going down the tubes so I was just wondering if I should renew or not. (Mine has been around $150 for 4 years.
carsteve 10:41AM (1/22/2009)
Thanks for the news.
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Mazda FTW! 10:42AM (1/22/2009)
My Mazda came with a Sirius reciever and a 1-yr subscription. When it ran out, I never renewed it...partly because I did'nt have $185/year to spend on radio but mostly because I felt the money wasn't worth it. I prefer listening to CDs I make and if all else fails, there must be SOMETHING on free radio.
Paying for radio is...weird. The content isin't "bad" per se. But it's nothing that made me go wow.
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UltimoDragon 11:06AM (1/22/2009)
Satellite radio is still a great medium for those in rural areas or cities with a few format holes, whether its progressive talk radio, smooth jazz, indie/college rock, big band standards, dance, or whatever local broadcasters aren't broadcasting. So its still worth it to some extent--but the price hikes still suck big ones.
Smart are the people who paid $300 or 400 for lifetime Sirius subscriptions, which I doubt the new SiriusXM offers anymore (provided that the company lasts more than three years after signing for them).
Jj 11:07AM (1/22/2009)
It’s no more weird than paying for television. I absolutely love it, music is my only other interest that even approaches cars/motorcycles in my book and it’s great to have instant access to (mostly) commercial free music of every genre imaginable. Not to mention, news, sports, I even occasionally listen to the comedy channels. Between the satellite radio and iPod jack I never have an issue with in-car entertainment. I couldn’t care less about the in-dash CD changer, I haven’t bought a CD in years.
I was very young when cable television first because available, but I imagine that there was a similar resistance to paying for television. I hope people get over that psychological hump with satellite radio as well because there is really no comparison to standard free radio.
Judy Zik 11:20AM (1/22/2009)
I subscribed to Sat Radio through my new cellphone this month. My biggest suprise about Sat Radio was the commercials considering how much hype there was about it being commercial free. I am pretty sure the way it is going they will just eventually add in more and more commercials. Between the internet and my cable digital box I get other options for similar services without the commercials in the house so it doesn't make much sense at home but I will probably try the service on my cellphone for a few more months for use on the go, at the gym or in the car. The comedy stations are worth it. I have been looking at the recievers for my Car radio on Ebay. Guess that lifetime membership might still be a good buy since Sirius and XM haven't merger yet in Canada.
Polly Prissy Pants 11:58AM (1/22/2009)
"I was very young when cable television first became available, but I imagine that there was a similar resistance to paying for television."
Actually most people I knew loved paying because what they were promised in return was commercial free programming. It was awesome. Of course that was eventually phased out and now it's just as bad as regular 'free' TV where 30% of all broadcast time is advertising. I imagine satellite radio will follow the same trajectory.
Jj 12:53PM (1/22/2009)
If that is true then people should "love" to pay for satellite radio, because they are also promised commercial free programming in return.
I do agree, however, that more advertising will inevitably make it's way to satellite radio. Some "premium" channels will most likely remain commercial free though, just like with satellite/cable television.
Buzz 10:44AM (1/22/2009)
When my sub runs out I will not be renewing. This will not be the last price increase. Why should I finance Stern, I don't listen to him.
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Travis 10:58AM (1/22/2009)
I have to admit to being an addict to satellite radio, and will probably pay this as well. I don't listen to music, but news/talk/financial and for that it's a GODSEND. Instead of crappy local talk radio, you get the full programming of CNN, CNBC, Bloomberg, HLN, etc.
As for the price increase XM/Sirius needs to restructure their debt, and if you haven't noticed, lending rates are FAR higher than they were even just a couple years ago. For a company that's never made money, at least they're trying to be a profitable company. No more $500m for Stern, no more bidding wars for the NHL, NFL, MLB, NASCAR, etc. Yes, this price increase hurts, but when I think of how much time I spend in my car (at least an hour / day), it's one of my guilty pleasures.
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Ian 11:15AM (1/22/2009)
Yup, I listen to 99% talk. I want to drop my subscription to Talk Only but I'd like to be able to keep like... 5 music channels. I can't wait till theres more than 1 Ala Carte radio. 50 channels for $8 a month? Thats great for me. I don't need more than like... 15-20 channels.
Iridium 11:02AM (1/22/2009)
My car has XM built in but with a 6 disc MP3 compatible changer I really have all the music I'd ever want.
XM is really the same as digital cable TV. You have to pay for 300 channels you'll never watch just to get 25 you will.
Unless you listen to Stern you pay a great majority of your XM subscription to support him. You also pay a lot for the sports channels you probably never listen to.
We really need to force consumer rights groups to get legislation passed for a la cart pricing. No BS either. You only pay for the channels you want and exactly the cost you are charged under the standard plan. If you want MTV then you have to pay the $4 a month for thier networks, or $6.50 for ESPN. If you just want the History channel then you pay about $.30.
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MKULTRABLIZZARD 11:41AM (1/22/2009)
i too have built in XM, the 6 disc MP3 compatible player AND an iPod port but i listen to Stern pretty much all the time and maybe a few stations.
an a la cart option would be a great option but i'm already locked in for 3 years.