Sirius XM's All Access Pass promotion is perhaps one of the better promotions the company has offered in quite some time. The promotion is consumer friendly while at the same time offering the company potential upgrades down the road. In the past the company offered promotions such as 3 months free when you sign up for a year. This concept was a benefit to the consumer, but realistically did little to bring the consumer into additional services such as "Best Of" or Sirius XM Internet Radio.
Sirius XM's All Access Pass solves that by offering the following:
A consumer that buys a 3 month subscription will get 1 month free of "Best Of" as well as 1 month free of Sirius XM Internet Radio (a $7 savings). A six month subscription will offer 3 free months of "Best Of" and Sirius XM Internet Radio (a $20 savings). Sign up for a year, and the freebies boost up to 6 months (a $40 savings).
The first reason I like this promotion is that it is very consumer friendly. All the subscriber has to do is ask for the All Access Pass and pick the length of subscription. The second, and perhaps more important reason I like this promotion is that it offers Sirius XM the potential to have consumers actually upgrade their subscription after the free trial exists, and while they still carry a standard subscription.
This promotion allows a user to experience satellite radio the way it was meant to be experienced...over satellites. If the consumer wants to use their smart phone or computer to listen, they can. They also get the "Best Of". For example, on a one year package, an XM subscriber may decide that they like getting Howard Stern or the NFL and elect to become a paying subscriber for those additional services. Perhaps they also like getting content on their smart phone and want to keep that as well. Instead of being faced with a full price renewal of satellite, "Best Of", and Sirius XM Internet Radio, the cost to finish off their subscription with the whole package is a $40 payment. This All Access Pass applies to all Sirius and all XM receivers.
Of course the company is also making another option available that fall in line with the more traditional rebates we have seen over the years. The other option is a $30 rebate in the form of a pre-paid Visa card and is available on every Sirius and XM receiver in the line-up.
Investors and consumers alike can appreciate this promotion. Consumers get access to more great content in more ways than a standard subscription, and investors will like that it offers a fully paid subscription which will keep ARPU in line with expectations, while allowing room for additional ARPU a few months down the road.
These promotions begin October 17th and run through December 31st. Subscriptions must be completed by December 31st.
Position - Long Sirius XM Radio