Thursday, March 27, 2008

Sirius + XM price options

A Boston Globe article on Sirius/XM plans.

They haven't specified whether popular programming, such as Sirius' Howard Stern or XM's major league baseball, would be part of the "select programming" available.

XM and Sirius say they plan to offer eight options that combine the companies' offerings, such as a "mostly music" package with 65 channels, for $9.99 a month -- less than the current flat rate of $12.95. Six of those eight options will be available on existing radios within six months of the deal's approval, the companies say.

The two "a la carte" packages that promise the most flexibility, however, will require new radios.

The cheapest "a la carte" option would offer 50 channels for $6.99 a month with additional channels costing 25 cents each, though premium choices, such as the NFL channel, would cost $3 or $6 each per month. Another "a la carte" plan would offer 100 channels for $14.99 a month.

Analysts expect few current subscribers to pay for the new receivers. Current satellite radios cost between $40 and $200.


It also says

The companies' combined 17 million subscribers have radios that aren't interoperable. Radios that can receive signals from both companies likely wouldn't be available for up to a year after the merger -- and another year or two later for customers who get satellite radios via new car purchases.


I'm surprised it will take so long. I think it is really important to get these "combo" radios out on the market. Otherwise the hardware 1) gets outdated after new customers buy it now and 2) listening options are limited since you still have to pick. That's not an advantage to people who will take a look at sat radio now with it being in the news. I think lots of current subscribers would buy new hardware. They love this stuff. But if you are looking into it and go to the store and ask about getting a sat radio and they say well do you want XM or Sirius? People will be bummed they still have to pick because of the hardware issue.

'A la carte' satellite radio a year away


I think the headline is wrong. I bet (a little not a lot!) that we see new combo radios sooner rather than later.

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