I don't think there's anything wrong with a price increase. The cable company does it all the time. We still have it.
I don't think there's anything wrong with a price increase. The cable company does it all the time. We still have it.
I just got my oil changed yesterday. I had a punch card that said $19.95 oil change, it had 6 punches so it was probably 2 years old. On the sign of the shop it said oil change $22.95.
They never sent me a headsup that the oil change price was going up and to come in and lock in this years oil change price.
I didn't question why the oil change went up $3 in their first 2 years of existance, thats life in america.
(oh but the card did say up to 5 quarts and my truck takes 6, they gave me the whole change for free even though it came to $29, maybe sirius xm will offer something exciting the day of the increase)
Last edited by imromo24; 01-23-2009 at 08:06 AM.
I have to strongly disagree with the price increase on family subs. First off it was largely free money to Sirius. The family subs didn't require any advertising, were probably largely retail so that had a lower SAC and were probably the loyalist of customers. By increasing the price you not only will reduce the number of people who currently have second subs but, more importantly, you will dissaude current single subscribers from adding additional subs.
The elimination of the free internet stream is an OK idea as most users who are serious about internet radio already have the premium stream.
I myself will buy a year for my second (homebound Stiletto with premium) and third (brothers) subcription before 03/11/09. A year from now I will probably retire the aging Stiletto 100 and switch the premium to the first sub and listen to the premium stream on a ipod Touch/Iphone or a Logitech Squeezebox. My Slacker has cut into the Stiletto's listening time. I have the Slacker Plus Service and when I use the Stiletto I keep trying to hit the skip button
It occurred to me today that I would pay $12 for an hour of some of the DJ shows I have heard on Shade 45 and Hip Hop Nation. The other 167 hours of the week are just a free bonus!
The value of the service is what Sirius XM says it is. What if it was $1 and they raised it to $12? People would freak! So, being $6.99 or $8.99 is just a shock no matter the difference in price.
Once the initial shock passes, the new subscribers who don't know about the $6.99 from a month ago will shrug it off as a $4 savings on additional radios.
You are right that the subscribers who have multiple radios on their accounts are "probably the loyalist of customers" and thus are less likely to cancel. They added more radios to their account because they wanted more access to the service. They have already invested in the additional radios because they are fans of the service. If some of those subscribers get pissed off and cancel their additional radio/radios, maybe they will try to sell them or give them to friends who will then become full paying subscribers.
I know for a fact that some of those additional "family plan" radios are actually not in the family. People will say to their friend, "put me on your plan so I don't have to get my own individual subscription and it will be cheaper." Well, it will still be cheaper than if those people got their own sub......$4.00 cheaper.
I agree some "family" subs are actually friends subs looking to save some money. Those are not likely to be be cancelled. However, I am sure a great number of the "family" subs are actually a second sub for home or work. When I got my Stiletto 100 the options were: Listen online via laptop, move the radio between the car and house or get a second radio. Now $150 radios such as the Grace Internet Radio will be able to play Sirius at home. I tried the Logitech Squeezebox Boom at Best Buy, and for it's size it is pretty impressive. We got my stepson an IPod Touch for Christmas. The thing is freakin' amazing. Now it has a Slacker App and hopefully soon a Sirius App. I am seriously considering getting an Iphone
What is even scarier as a Sirius Investor is these same devices play Sirius's competition such as Slacker, Pandora etc. These products do not have talk options but the local AM station does. If your a fan of Howard, Bubba, Opie & Anthony, I can see how there is no substitute but I am not. I find my favorite AM station, WABC in NYC, more than sufficient.
The $6.99 family subs were a good deal for the company and the customer, The $8.99 price less so. Will people cancel? some will, but probably not a lot. Will it hurt new family subs? I believe so and that is over the long term. Next year the Internet radios will be under $100.
Disclosure: Long Sirius XM, Long Citadel, No Position Logitech, No Position Apple
Last edited by James; 01-26-2009 at 05:03 PM.
I think it is a great move by the company. It does bring in additional revenue. They can use this in one of two ways:
1) Eliminate redundant streaming of content. Only do it with higher bandwidth.
OR (my favorite)
2) Higher bandwidth, paid stream delivered without commercials (except on talk and sports channels). All satellite channels become available online on higher quality stream. Lower quality stream (without all channels) becomes available for FREE with commercials. This is a great way to open up the revenue streams to advertising AND more customers. Better quality content become available right alngside the Slackers and Pandoras.
The reported price increases are now official and being acknowledged by Sirius/XM....
http://www.xmradio.com/xmrolockin/index.xmc
On March 11, 2009, we will upgrade the online listening experience to near CD-quality digital audio. Satellite radio subscriptions will no longer include internet radio at no charge.*
If you renew your subscription now, you will continue to get online listening for FREE for the length of your subscription.
This is your chance to keep listening online at no charge. After March 11th premium online listening will cost $2.99** per month.
http://f.chtah.com/i/24/2070794612/sirius_lockin.html
We are offering subscribers, like you, a special opportunity. Act now and save up to $90.*
On March 11, 2009, the monthly rate for you SIRIUS Everything discounted subscription will increase from $6.99 per month to $8.99 per month upon renewal. You can lock in the current discounted monthly rate of $6.99 by choosing a longer-term plan- but only if you act quickly.
And if you renew now, you can continue to listen on line for FREE for the length of the term you choose. Effective March 11, 2009, online listening will be upgraded to a higher quality digital audio and it will no longer be free.