I have thought about this for awhile now - the more I think about it, the more positive I feel about it...
#1 - The FCC has no say so over the internet - period. The increased fee for the internet feed is out of their reach. The additional radio charge to an existing sub price point was also not part of the price cap merger rules - period. I am also positive that this was run through legal beforehand - period.
#2 - How can this not be viewed as a positive thing for SIRI investors? This is a way to add much needed revenue with a very limited impact to subscriber retention and growth.
#3 - If a regular subscriber, to a single radio (the majority), doesn't have a computer or never listens online, they will never know the difference.
#4 - If a subscriber subscribes to the internet only feed, they will never know the difference. If they are an XM internet subscriber, they will get a higher quality bit rate. What's not to like about that?
#5 - If an active subscriber rarely listens online, they will pay more for the internet feed (which adds revenue) or do without and more than likely still be a subscriber.
#6 - The extra $2 for additional radios to an existing sub is a smart move to raise revenue. Subscribers with additional radios on their account (the minority) have already invested in the cost of additional radios for a reason - they wanted more access to the service and they are less likely to cancel. If they do cancel their additional radio/radios, they are likely to give/sell the radio to a friend etc. (which brings more radios to the public and adds more subs) or they will sign up for an extended or lifetime sub to lock in the current rate (which adds more needed short term revenue to the bottom line).
#7 - The higher internet feed fee discourages listening online - which caries a higher RIAA fee for the company (helps cut costs).
#8 - The higher internet feed fee is a hint that the iPhone app is right around the corner. The company can support and promote the coming iPhone app - knowing that it will bring revenue and not be a money drainer.
#9 - With the internet feed fee in place, it opens the door for making the online offerings profitable. Sirius/XM can expand and market it's internet offerings and have them actually add to the bottom line.
#10 - With the recent news that Pandora is adding embeded ads to it's streams, Sirius/XM can actually compete with the Pandoras, Last FMs, and Slackers now. It opens the door for Sirius/XM to release a product like the Slacker G2 that also gets live content.
How can this not be a good thing for SIRI investors?
Tyler, Brandon, Charles, or Newman - clean this up (change/add to it) and make this an article and list me as a second author - Demian Russian.
There needs to be an article about how this can be a positive for SIRI investors...