Is It Time To Switch From Sirius To XM?
This may seem like an odd article, but despite a merger a few years ago, satellite radio is still a very divided proposition. While Sirius XM (NASDAQ:SIRI) puts on an appearance of one united company, two distinct services still exist. Satellite radio subscribers are either on the Sirius platform or the XM platform. The burning question is, when will the company finally unite platforms, and is it a good idea to make a switch?
First things first, it is common knowledge to most investors of SIRI that the desire of Sirius XM is to migrate to the XM platform. Most consumers however are still unaware of this unofficial fact. The evidence of this migration to one platform can be seen in many places, but none so clear as the fact that new Sirius branded radios are not satellite radio 2.0 compatible. The Starmate 8, a new Sirius unit is simply an updated version of the old Startmate, while the Edge and the upcoming Lynx are both much more capable and deliver satellite radio 2.0 features.
As most know, the OEM channel still carries the same divide. Certain cars feature Sirius, while others feature XM. Unfortunately there is little that a consumer can do at this point to make a switch unless they migrate to a plug and play retail radio. Sirius XM had a merger condition that mandated that the company not make legacy radio’s obsolete. Because of this merger condition, a true unification of the satellite radio platforms will not be possible for quite some time. In fact it could be as much as 5 years away.
Many readers may now ask why consider switching to XM now if the Sirius side will still be around for 5 years? There are several reasons that readers may want to consider:
- While Sirius XM promised not to out-date legacy radios, there was no such promise that they needed to make any capabilities beyond what existed at the merger available to such radios. This is exactly why XM platform radios are satellite radio 2.0 capable and Sirius branded radios (even the brand new Starmate8) are not. Moving forward all new channels and services can be limited to certain radios and will be on the XM platform.
- Consumers can get more content for their dollar on the XM platform. After the merger Sirius subscribers were offered a tier called “Best of XM” for an additional $4 per month. This tier allowed Sirius subscribers to get several XM channels on top of the Sirius channels they already had. That package was later renamed Sirius Premier. XM had a similar package called “Best of Sirius”. The main difference between the two has been Major League Baseball. MLB has traditionally been available on the XM platform, while the other sports have been carried on Sirius. In new negotiations the NHL and NBA also migrated to XM, but were still carried on Sirius. A Sirius consumer that got the “Best of XM” still does not get baseball. The reason is that MLB holds the options and cards when it comes to the contract. Sirius XM pays MLB $60 per year, and in order to bring baseball to Sirius consumers, MLB wants more money. The already pricey deal would become even more expensive. In contrast, the NFL, which is traditionally on Sirius is available to XM subscribers with the “Best Of” package. Thus in a head to head comparison, XM subscribers get a better breadth of content than Sirius subscribers.
- Pricing is another key factor. Sirius XM now has an “All Access” pricing plan that gives consumers regular satellite radio, the premier package, the Internet feed, and any satellite radio 2.0 channels to consumers for an annual price of $199 per year. The base service is typically $155 per year with the price set to go up to $174 per year in January. If you are a Sirius consumer you can still get all access, but satellite radio 2.0 channels will only be available to you on the Internet side of the service, and you still will not get Major League Baseball.. Meanwhile, XM subscribers can get the satellite feed of 2.0 channels as well as the NFL for a subscription that already comes with baseball. For what equates to $2 more per month you are adding over 20 new channels while not having to give up on sports coverage. In addition XM subscribers could see the added benefit of additional new technology as the company releases it.
With those simple reasons, a switch from the Sirius platform to the XM platform makes perfect sense in most cases if you are considering upgrading an existing retail satellite radio. It also makes perfect sense for new retail subscribers to select an XM platform radio over a Sirius platform radio.
As with anything however, there is a flip side to this whole issue. Howard Stern fans. Howard is on the Sirius platform. The only way an XM subscriber can listen to Howard Stern is by becoming a subscriber to XM Premier, a $4 per month increase in the subscription cost. Many Sirius subscribers have been loyal to the Sirius platform for years because of the shock jock. If a Sirius subscriber want all of the new capabilities, they would need to be in a more expensive package now. With all of that being said, is the $2 per month premium over the base price worth it? I say for most that the answer will be yes.
Up until now there has not really been a compelling reason for people to make a switch. Sirius XM has only recently updated hardware and announced the “All Access” price point. Now may be the perfect time to take the leap to the XM platform and take advantage of the “All Access” pricing.
This news may irk some consumers, but it is the reality of a merged company trying to get itself onto one more efficient platform. When this happens, the company can offer a lot more to all who love satellite radio.
Position – Long Sirius XM
I may have considered switching when Howard was on 5 days a week, but now that he’s down to 9 days a month I’m not about to pay more for less. I am a huge sports fan (MLB, NFL and NASCAR) but would much rather DVR them than listen on satellite radio.
I’m wondering if the sound quality is better on XM. I listen to the RealJazz channel regularly, and the warbling “underwater” sound of the piano, on all 3 of my Sirius radios (2 different brands) makes me cringe. That is not hifi in my book. I noticed the sound is just fine over the internet, but I don’t have this is my car… yet.
So is the new compression of 2.0 better? Will it get applied to all channels?
Yes, the compression of 2.0 is much stronger, allowing for more channels within the same allocated bandwidth. Think of this as saving an MP3 at a lower bitrate to save disk space. More music is the result.
More compression is NEVER better. After the merger when everything was effectively compressed 30% more, I dropped the service because of the resulting poor sound quality. I recently bought a new Honda (with a 3 month sub) and was surprised that the sound quality was able to get even worse. Needless to say, I will not be continuing the service. And they will be reducing the bit rate again? At least now you guys that say it “sounds fine to me” will even notice how horrible that it is. And the programming… and the third string DJ’s…
The next move is to get the billing merged- those that have a lifetime subscription can’t do anything at this point unless a provision some how is made to maybe pay a 1 time switching fee.
If the lynx is not supported by sirius and XM this is going to be a marketing/subscriber nightmare
You just laid out just about every reason I dropped my Sirius subscription. I was a loyal subscriber for about 5 years. I backed the merger expecting that the two companies would actually merge and become one – that never happened. Two companies, two channel lineups, two of everything. Just too confusing. I hate terrestrial radio and I want to support this technology but the folks running sat radio just don’t have their act together. I’ll gladly come back if they ever truly merge into one easy to deal with company.
Oh and they stop paying err.. wasting big money on non radio people.
A very good article.
I had to replace the Sirius radio in my vehicle about a year ago. The center placement of the antennae above the windshield couldn’t take the beating the car wash gave it over 6-7 years.
The replacement has the antennae to the far left.
However, I picked the wrong radio for me. I wanted the Sportster but Best Buy had none in stock. I settled for the Starmate and it is too small for my big fingers. The Sportster would have been better.
Should I replace again, I’ll go to XM
The one thing you forgot to mention is those of us who have a lifetime subscription to Sirius. How will that work or will it?
You will have the opportunity to purchase a new XM lifetime subscription if offered at that time.
If they eventually switch over to the xm format. What would they do with all the people who have Sirius lifetime memberships?
Greg! If Howard is on 3 times a week, where did your 9 times a month come from? Are you knowingly creating fear like Spencer does sometimes?
He typically takes a week off each month, just like he will this month (November).
Howard is on 3 times a week (contract).
Correct, and many months he takes a week off.
I own 2 Sirius radios, 2 car docks, and a home dock radio. My big question is whether I can just swap-out for new XM radios or if all of the docks becoming useless with the XM2.0 radios.
Sirius Xm will not allow a liftime sirius subscriber to transfer their account to Xm radio. I’ve tried multiple times with no luck.
I wonder what they will do with the “lifers” with sirius radios with 2.0 the big push? I have a Sirius that has a lifetime sub that has paid for itself by now,but it seems lifetime no longer means a long period of time anymore.
I’m wondering whether or not to switch to XM. I see that the Xpress RCi, basically the XM equivalent of my beloved Sportster 5, is now $49, which I could afford, but it only gives me ten presents, where the Sportster 5 gives me 30. Are there any plans, does anyone know, to relese a newer radio that has the features of a Sportster 5? I’m seriously (and siriusly) considering switching to XM now, even though I wont have to for the next five years, but I dont want to do it if it’s not worth it. Thoughts?
We have had an XM radio in our home for quite some time. Now our new vehicle has a Satellite radio with a Sirius platform. How can I get it switched to the XM platform that we prefer so we’re not paying for two subscriptions?
I am a “lifetime” (of the radio with 3 transfers) subscriber and just bought the Lynx portable radio. The customer rep told me I would absolutely be able to use this radio but won’t get Howard with out the Premier package. She told me that for 100 dollars one time fee, I can transfer my lifetime select to XM Premier and it will still be “liftime” of the radio plus 2 transfers. Of course there will be a 75 dollar transfer fee too. So it will cost me $160 for the radio (home dock), $100 onetime fee for XM Premier and 75 for the transfer….here is the kicker, so I say ok and pay for the radio, then I go to upgrade to XM Premier and she comes back to tell me that she can’t do the premier upgrade until the radio gets to me and I call in the EIN and transfer the subscription…..Other than spending the extra $100 (i’m pretty sure if I am real nice I can get the $75 waved), did I get snookered here?
I’ve noticed this lean toward XM by SiriusXM for some time. This article confirms my suspicion, but it still doesn’t answer “the why” question. If one assumes that there will eventually only be one platform, why would you take XM over Sirius? The geostationary XM satellites are horrible, particularly the further north you live. I have radios on both platforms and the number of drops from XM are far greater. Geostationary makes sense if the receivers are being bolted to the roofs of customer’s houses like satellite TV. However, most of the satellite radio antennas in use are attached to moving objects (ie cars). It seems to me that Sirius’ geosynchronous satellites do a much better job at providing signal than XM’s geostationary satellites. There’s a reason why XM needs 3 times as many repeaters as Sirius has. Clearly, there are more parts to the equation of SiriusXM’s slide toward XM, but it’s got to be the politics and not the physics. For anyone who wants to test this, go park your XM radio on the north side of any brick building. As long as your close enough to the building (OR the building is relatively high), you’ll lose your signal. This doesn’t happen with Sirius… unless you’re in the parking garage. All you need with Sirius is to be able to see straight up.