Just curious what everyone's thoughts were...

NEW YORK — XM Satellite Radio (XMSR) Monday said it would raise the monthly fee for its nationwide radio services by about $3, or 30 percent, and would fold some premium features into its basic plan.

At $12.95 per month for the basic plan, XM's new monthly fee matches that of its rival, Sirius Satellite Radio (SIRI). The new pricing plan starts on April 2.

Under the new pricing arrangement, subscribers to XM, the leader in the nascent pay-radio market, will receive at no extra cost the Internet service XM Radio Online (search), which currently costs an additional $4 per month. They will also get "High Voltage," a channel featuring ribald radio hosts Opie & Anthony, which had cost $2 extra each month.

Sirius also lets its users listen to a version of its channels over the Internet, and says it will not charge extra for its broadcast of shock jock Howard Stern's (search) radio program, when he debuts on the service next year.

Shares of both stocks rose in active trade, with XM climbing $2.55, or about 8.8 percent, to $31.28, while Sirius rose 38 cents, or about 7.4 percent to $5.53.

 

Tried this a few months ago and it bit them in the azz.

 

XM stock jumps 15%, more revenue for the company, it's hard to beat. It's the right time to make such a move, especially when current subscribers can lock in the current rate, and additional subscriptions are not increased.

 

That they'll make much more money forcing everyone to pay a little more than if they keep trying to make money from the subscribers that actually are willing to pay for these services.

I haven't felt out of touch by not using the search feature; and I wouldn't willingly pay for O&A - but I guess I'll have to pay for both now, even though my listening experience will be no different. I also wonder how much of this increase might be part of the baseball deal (that I'll rarely use). All these additional programming deals aren't free. We have to pay in one way or another.

I'm curious to see how Sirius can afford to pay Stern without raising the subscription price. Isn't his deal like $500M over 5 years? If you figure Sirius has 2.5 million subs by next year (optimistically), that's still $40 each subscriber, per year, to cover that deal. Not to mention the NFL, NASCAR, etc.

They may not have plans to raise prices currently...

 

Sterns deal is $500 million over 5 years, and the money is not guaranteed. This includes the cost of the entire cast and production of the show. Most people think that $25-30 million is guaranteed. The rest is cost of the show, stock and incentives for adding additional subscribers.

Sirius has 1.5 million now, will be at 2.5 to 3.0 million by Jan 30, 2006. Both XM and Sirius will bust 5 million subscribers ay the end of 2006 IMNSHO.

3 million subscribers at a $10 average ($12.95, and $6.99 for 2-4th subscriptions) bring in $360,000,000 in revenue.

 

I'm not sure where you got your math from but 3 million subscribers at $10 each comes to $30 million in my book.

3,000,000 x 10 = 30,000,000

Not trying to bust ya, but we at least need the numbers staright. I'll pay the extra $3 because I enjoy having it. But if it starts going up again, and continues, I may have to reconsider.

 

There are 12 months in a year, which makes it $360 million where I am from.

Also its straight not staright

 

I'm okay with this if I get the online version... I contemplated purchasing it anyway...

RP

 

Couldn't tell if that was a question or a statment. But Yes, we XM users begin XM online as part of our basic service on April 2nd, the first day of the new billing.

Not to thrilled about Opie and Anthony however, It's just stern with fewer lesbian midgets.

 

[QUOTE][quote]There are 12 months in a year, which makes it $360,000 where I am from.OK, so you got me. I forgot the 12 months, but it is $360,000,000 not $360,000

Oh yeah, we spell staright that way in Illinois.

 

At least current subscribers can pre-pay a sbscription and still lock in our current rate. It will even be a little bit cheaper if you do a multi-year deal. With the extra channels thrown in, it's actually a good deal until your sub. runs out.

 

XM doesn't already have internet listening capability?

 

Yes. But it was for a price. $4/month I believe.

 

XM now sending out letters about the price increase. Anyone else got the letter. I pay for 3 radios it not really a big deal I guess. I'm not really an Opie and Anthony fan either, nor Howard Stern. Although the internet thing might be cool. We've got two of the pioneer units and one of the xm commander units. To tell you the truth I can't hear the difference in sound quality between the direct input units and the unit with the transmitter. Will they send us a login and password in the mail???

 

I wonder how they'll be able attribute what percentage of any increase in subscription base is due to Stern? Also, of course, that revenue figure won't all go to servicing Stern's deal. It will also go to covering NFL, NASCAR, operating expenses, etc. So, if your statement of the guaranteed amount is correct, then I guess it is more achieveable - but, I'm not so sure I see them doubling their base in a year.