Sirius XM Rate Hike Slated for March 11th
Over the last couple of days we have received numerous reports from credible sources inside of Sirius XM along with a few followers from Twitter that a rate hike is coming March 11th. Even though at this point none of this can be officially confirmed, it is quite suspect that these reports are coming from various sources yet, all have the same date and prices attached.
What is being said is that subscribers can expect to see a $2 increase on additional subscriptions bringing them to $8.99/month along with a loss of the free internet radio account. Instead, users will now have to pay an additional $2.99 for an online account, with no word on whether or not that includes the premium 128k feed.
At a time when subscribers are just starting to settle down over the recent channel changes and censoring of the sacred Howard 101 it looks like Sirius XM is ready to stir up the customer backlash storm once again.
It is also interesting how these new prices increases might just dance right around those merger concessions put in place by the FCC. What happened with this merger being great for the consumers?
For the record, we had a little bit of back and forth about this topic yesterday on twitter… all the more reason for you to follow us @siriusbuzz!
What the hell is a Twitter? Man I am out of the loop.. Good point. I thought they were unable to raise prices for 3 years as per the FCC??
Yea they can’t fake rumor Nice Going Anti-Sirius Charles, Maybe Hartlieb needs someone like you
Do you know I have 4 subscriptions and SIRI price average that would make you puke? I am reporting the news. As a subscriber you should want to know the news regardless of whether that news is good or bad. I am not anti-sirius, it looks to me like sirius is anti-sirius.
Yes, A fake news story. One that is fake, Why don’t you atleast put rumor in the title.
Charles, not disrespect intended but the point is well taken that this is a RUMOR not NEWS. Unless it is an Official Company Press Release, you should have included that fact in your title.
“Sirius XM Rate Hike Rumored: Slated For March 11th”
As far as the rate hike rumor, if true, I welcome it. With web royalties being what they are, charging for the access is easily justified under the concessions to the FCC as a business expense. It would allow for expansion of WiFi services to their portable players and laptop users. I have 4 subscriptions and as a share holder welcome their effort to generate additional revenue from the services they are providing. I just don’t believe that March 11th will be anything more than an announcement date. I doubt they can raise prices for services until the 1 year merger mark. New services such as web accounts might get buy with earlier increases but the rest was outlined in their merger agreement and subject to annual review as I remember.
This is the problem with Rumor…… it is filled with speculation and does little to move the goal of seeking useful information forward.
None taken, none of this makes me happy to report. Would you rather we not report it? I do not consider multiple insider emails a rumor yet, I still point out in the article that this is not official news. So, I am not sure what else I can do to make you happy. This wasn’t some drunk guy talking at a bar, these were credible sources.
We reported that Bubba had renewed his contract before it was reported… no one complained. We were right.
Charles, I am not looking for you to make me or anyone else Happy. Just looking for the facts. Look at the speculation that will follow on the possibility of this without confirmation. If your telling me that you have insider emails from multiple sources than fine…. Still there are few confirmed details and just a lot of speculation. With Seeking Alpha and other sites picking up your articles, I thought that factual details would be important to you and others as journalists.
I forgot to answer your question. Yes I would rather you not report it in its incomplete and unsubstantiated form. JMO
You wouldn’t feel cheated if I knew about this and didn’t tell you? Imagine the news dropped in 2 months and I said, “oh I knew that months ago.” I am sure that would go over real well.
BTW this post was placed into a category called rumors and I said that it was not official.
I must admit, this site has become generally negative about Sirius. This post had a negative slant, like everything else posted on this site.
Look, the base price is not going up- per FCC regulations. And that’s a big concession- as its been the same price for a LOOOONG time. Its due to increase. The increase on the additional radio is fair- especially when you consider the $6.99 price point began when the first subscription was still $9.99. Wouldn’t expect SiriusBuzz to point that out.
As for the internet stream. This was probably inevitable. Especially when you consider that Sirius/XM will probably make more and more content available on the net.
Finally, lets not forget that this company is broke. If they can’t make it at current prices, why is it so outlandish to raise prices so they don’t file bankruptcy?
I agree they needed to do this. If upwards of 25% of their subs are family plan, this brings in about 100M in additional revenue.
Not to mention that you can lock in 6.99 if you are a present subscriber if you prepay the year. This would be less revenue for those, but more $ up front.
Yes, a % will cancel, but I guarantee the benefit to the balance sheet and future revenue far exceeds the negative press and the few thousand who scream and cry and cancel.
FCC mandated they could not raise the 12.99 plan for full basic service, nothing to stop them from raising the extra subs a few bucks. This had to happen eventually.
The FCC concessions were tied to several aspects including the second subscription, mostly music, a-la-carte, etc.
For this reason, I think that there are aspects of this rumor that are not accurate. They can raise prices, but only 1 year after consumation of the merger, and for the purpose of defraying royalty costs, etc.
Readers should refer to the FCC concent order
This site hasn’t become negative, the news about Sirius XM has become more and more negative. Why don’t you people see that?
The reasons why the increase is warranted do not matter to the average consumer, especially when they are losing channels, alternatives are emerging, and they don’t have an extra few bucks to throw at something when times are this tough.
From what has been revealed here, the basic subscription price is not being raised – only (perhaps) the cost of additional subscriptions. First of all, if a person has multiple subscriptions it stands to reason they already love the service. Second, if they have multiple subscriptions, they probably can afford it and an extra 2 bucks or so a month will not make them apply for food stamps.
As to paying an extra 2 or 3 bucks a month for internet service for those who are already subscribers, these people have already either had free car subscriptions which made them like the service enough to pay for it when their free period ran out or, if their car did not come with a factory installed satellite radio, they thought enough of the service to spend the money on a radio and also pay for a subscription.
So, in either case, the now free internet service is offered only to those who already enjoy one or more paid satellite radio subscriptions. If someone subscribes exclusively to the internet service (without having satellite service) they are already spending $12.95 a month and won’t, as it now appears, be paying anything additional.
So, I see Sirius XM’s potential price increases, on balance, having a minimal impact on subscriptions (and may actually increase subscribers – see my post that follows this one). However, the monetary results to the bottom line and, in turn, to shareholders, I believe will be significant.
Price increases sometimes yield results that go against percieved logic. In New York City, many years ago, a prime example is the Village Voice (a large circulation newspaper which is now distributed free (paid for by ad revenue). When the Village Voice raised its cover price from 75 cents to a dollar immediately its circulation went up. Rather than people boycotting it or feeling ripped off, the perception seemed to be that with the increased cost, the value also increased. They did nothing to change the newspaper, yet the increased price gave it the impression that it was worth more. If Sirius XM does indeed raise their prices, of course they will lose a small amount of subscribers. But, they may gain additional subscribers because of the perceived increased value. And, shareholders should be pleased at the increased revenue.
Its survival time for the company and it shows me they dont intend to go bankrupt and will try everything in their arsenal to improve the balance sheets in order to get fav financing(and no issuing of more shares, reverse split)
sacrifice one large coffee a month and you’re good… no problem! now lets see the earnings! and the refi!!
Wonder if this will after all Sirius Portable Wifi enabled receivers? What about Lifetime plans? I have a lifetime Sub tied to a S100 which I almost exclusively use indoors now with Wifi. I will be plenty pissed to have to pay $2.99 /month for this function option as built into the player. No wonder the stock is 11 cents on the dollar.
Wi-fi is internet- so you will have to pay more. On the alternative, you could just get an internet subscription which would be just $12.95 a month- but then you would have no access to the sat. service.
At a time when subscribers are just starting to settle down over the recent channel changes and censoring of the sacred Howard 101 it looks like Sirius XM is ready to stir up the customer backlash storm once again.
Tell me Charles how taking what is a Rumor is not being used here as gasoline to move this paragraph in your article forward. “Censoring” of the sacred Howard 101 as defined by Replaying Bubba’s terrestrial radio broadcast is a further misrepresentation of the facts. Bubba agreed to the contract and Sirius is honoring it, period. Howard is not being censored.
I am not sure exactly what you mean but I am about to move all of this q&A crap to the forums. https://siriusbuzz.com/forum/showthread.php?p=9822
What I said is not misrepresentation of anything. Howard 101 is censored, that is a fact. Are you telling me there is not censoring? I listen and I can hear beeps, burps, and chicken noises over swears.
Bubba agreeing to the contract doesn’t have anything to do with this. He does not control the actual programming. The guys who do thought this was a good move.
I think a price increase would help them pay off their debt. Its a good idea.
I cant believe how so many people are like “yeah the service is getting worse, and the price is going up… thats okay…”
theres no way in hell I’m going to accept sub par service and disastrous stock performance.
I think Sirius is going the way of commercial radio with mediocre shows that bore the hell out of me. fortunately we live in a world where there always will be the next thing that offers fresh talent.
I still listen to howard, but I’m becoming less and less interested because it seems like sirius is determined to self destruct. I suspect that they are a sinking ship just trying to prolong the disaster.
I have XM in my Honda, and I like to listen online at work. I am a huge O&A fan, so I really want to keep my satellite radio. I love it.
BUT – on principle – what has happened here?!? We were promised, no – guaranteed, by Sirius execs that this merger would be “best for everyone”. That NO rate hikes would occur as a result. This was all said & done in plain english to all the loyal customers of both XM and Sirius.
HOW are they getting away with this blatant lie, this deliberate scheme to get more money out of an already pricey service?
I feel strongly that this is the beginning of the end for satellite radio, which is truly sad. Such great potential, such a unique and entertaining service. If O&A ever leave, I’m absolutely out.
I’m starting to feel like Lando in Empire Strikes Back, after he cut the deal with Vader…
a price increase will destroy the company… its a really bad idea.
it would be a good idea if their servuce wasnt getting worse.
My radio cuts off every day for “updating” right in the middle of interesting bits on howard. this is not weather related.
I hear people complaining about how the music channels have been butchered. (I dont listen to them because the sound quaility is garbage)
Every other channel I’m interested in plays huge chunks of commercials. the news challesa should be called commercial channels with a little news.
I have a lifetime subscription so I suspect they won’t raise my rate, but if they do, I’m gone. Ive never seen a company survive by lowering their service levels and raising their prices.
I predict that the company won’t survive 2009
prices are too high. fire the over priced talent. Howard, Martha,
Bubba, Mad Dog, Opie. Death to Sirius XM. Bring back the good old
days of Sirius.
These greedy bastards are going to kill the golden goose.
The FCC’s decision to allow the 2 companies to merge was a poor one and one that certainly would not benefit the consumer. It has not even been a year and these concerns are coming true.
According to the FCC’s guidelines, there were certain conditions that were to be followed to allow the merger. One of them being that the pricing would not be raised for 36 months.
Well as a subscriber to the Sirius I can tell you that they have used to loophole to skirt the provisions and effectively raised the prices, not once, but TWICE!
In the first instance, the did not raise the prices on the primary units, but raised the prices $2 month for each additional unit. Today I get another notice from Sirius that they are now adding a “Royalty Fee” charge of $1.98 per month on primary units and .97 for additional units.
Call it whatever you want, this is effectively 2 price increases in less than 6 months and is unacceptable. I would like Congress to look into this matter and propose legislation to prevent not only Sirius XM, but all companies from engaging in this deceptive behavior.
Everywhere you look today, companies are engaging in deceptive practices and by raising prices and disguising them as additional fees and charges. This is standard practice on just about every rental car with concession recovery fees, battery fees, tire fees, license fees, etc. They are not the only ones, this practice is very common with hotels (resort fees) and now airlines are jumping into the fray.
This has to stop. The price should be the price. The only thing that should be allowed to be added is any taxes and fees required by law.