My thoughts on the reported price increase...

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...

I agree with most if not all of that.

I also find it positive that they are making moves with confidence. Change means the company is still alive and kicking...and growing. Stagnation means almost certain demise.

I can also see how they are making little moves in preparation for something else down the line...

And again, keep your name in the headlines, good or bad, its free advertising...

My thoughts ? Pathetic.

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Originally Posted by Siriusowner

My thoughts ? Pathetic.

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Sometimes a start up company has to give something away so the public knows what it has to offer. It is looking like it is now time to charge enough in order to make more than they spend. From the public response of the price increase, the anger, I mean, that seems like a positive sign that sirixm is not going anywhere...

Solve immigration, short welfare; long Siri

Thanks, that would explain why it gives me a sense of confidence. It would seem that they are on solid ground to be able to start charging what the service is actually worth. The early adopters got a good deal, now its time for business.

well said dem, siri needs all the rev it can get, as a subscriber i do not mind paying more. Sirius owner needs to calm the hell down, he is so pathetic.

I have been the reading responces to Tylers artical and I like the feedback he has been getting....It feels like the concensis is changing to a positive reaction and I could agree more with the changes that have been occuring whether it price increases, combining channels, getting rid of overpaid talent....It all about the bottom line & good business decisions.. Its time to watch Mel do his magic.. Go Mel....Long & Prosper SiriusXm

Another thing that makes me feel good about it is that I think they are not going for BK.
If at all they are considering BK as an option, they are definitely weighing the pros and cons of it. As a lot of people agree, a subscriber facing company may see a lot of subs flee if they go BK. Add a price increase to that, Sirius can not afford the uncertainty that the subs will feel..

I may be reading what I want to read from this announcement, but hey, we are all looking for just anything to feel good about these days!

Demian,


I think your lobbying for the Mel's CEO job:):)


You got my vote...................

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Originally Posted by ray

Sometimes a start up company has to give something away so the public knows what it has to offer. It is looking like it is now time to charge enough in order to make more than they spend. From the public response of the price increase, the anger, I mean, that seems like a positive sign that sirixm is not going anywhere...

Solve immigration, short welfare; long Siri

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Really wise words...that is called marketing.

Mel is not finished with this company yet, don't kid yourselves. His ego alone can run a profit. He is not a slacker....he is a very smart businessman....give him some slack...he will figure it out. If not, then blame the financial institutions and the rest. A man can only do what a man can do. He isn't the CEO to fail. He wants another success story in his resume.

Funny thing, just saying if SIRI didn't make it, I would follow him and get in early on his next adventure. He is one hell of a salesman.

Have a great evening buddy,

Bill

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)

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 :D

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.

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Originally Posted by James

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.

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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

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.

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Originally Posted by James

Now it has a Slacker App and hopefully soon a Sirius App. I am seriously considering getting an Iphone

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I think the Sirius App will be out pretty soon. I have it on my phone and I do not bother with Slacker or Pandora.

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Originally Posted by jmm232

I think the Sirius App will be out pretty soon. I have it on my phone and I do not bother with Slacker or Pandora.

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Do you have the Starplayr beta or a jailbreak version?

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.