Inside Radio is spinning reporting that XM Satellite Radio's COO Nate Davis mentioned at a recent conference that the pricing of a combined XM+Sirius service might possibly run at $18-$20 a month.
Inside Radio called this "the real cost of satellite" in a recent email subject line. And here's a direct quote showing how they're trying their best to try to smear satellite radio:
"The same day Mel Karmazin was wriggling around the pricing question at the House Anti-Trust Task Force two weeks ago — XM COO Nate Davis was giving the Bear Stearns conference a better fix. He was ballparking the “best of both worlds” XM+Sirius lineup at perhaps $18 to $20 a month, and that may be more than some folks on Capitol Hill expect."
If you'll recall, Mel Karmazin told a House telecom subcommittee - when asked if a combined service price discount would be either $10 or $2 - that it "looks closer to ten than to two."
So let's do some math. Dual-service subscribers currently pay $26/month, so a combined price of $18-$20 is in fact $6-$8 less expensive. Now, is that actually closer to $10 off than it is to $2 off? (gasp!) Why yes it is!
Now let's see, is this approach of using XM/Sirius Execs words against each other in anyway similar to the NAB's recent ad campaign? No it can't be - a legitimate publication like Inside Radio would never do something like that!
I pay $26 dollars a month? Nope. I am a dual sub with my buddy like many dual subs. One covers their "primary" service and the other guy puts you on this family plan. $12.95 + $6.99 = $19.94 o, a price of $18-$20 would be about what I pay now for both services for a savings of at most two dollars with the bonus of all my music going "top 40". Not to mention that anyone with a computer can get a better deal than 12.95 a month for primary service if you look around.
I will give FUBAR radio a chance but it will most likely kill the best parts of SatRad for me.
$18 - $20 for BOTH services sounds pretty fair to me, actually.
History Guy - Not a judgment, but you and your buddy are probably in violation of the service agreements for both companies. I'm sure many do this, but claiming that it will cost more for a consumer who does not violate the agreement is not a good argument.
and thats BOTH combined in its entirety---If you have sirius and just want to add MLB---its going to cost you only a few more bucks, ala carte
iband, It doesn't violate any agreement if we are family. :) Also, for people who "team up" with non-family members, I'm sure than XM or Sirius would rather you didn't sign up at all. Right?
So since there is no way a combined company is going to continue to offer only XM or only Sirius, my $12.95 will go up $5 - $7 and for what, more choice? That is no choice. I don't want my price going up. If I wanted what the other service had to offer, I'd still be a dual sub. This merger is leading people to believe they will be paying less. I think we can all see that in the end we will all be paying more. Whether it's tiered pricing or just doing away with XM/Sirius and making everyone buy and use new dual radio's and signing up for the new $20/month service. This is one time I'm with the government 100%. I hope they allow the merger then regulate the shit out of the industy. If they want to ruin it for the customers perhaps it's time the FCC ruined it for them.
thats not true pfreak---
I'm not condoning what HistoryGuy is doing, but he's got it all wrong anyway. You have to look at the price for both people in that situation:
Currently, the total cost for both of them is $39.80 ($19.90 each):
$12.95 (sir1) + $6.99 (sir2) + $12.99 (xm1) + $6.99 (xm2)
Post merger, assume a $18.95 primary cost and a $9.95 secondary cost. Now they only need ONE primary and ONE sub since the services are combined. Total cost for both of them: $28.90 ($14.45 each):
$18.95 (sirxm1) + $9.95 (sirxm2)
So, for those who violate the agreements like HistoryGuy, they'll save about $5 each after the merger.
Pfreak- your incorrect. If you want only Sirius or only XM, both services will continue to be offered for the same price you pay now. In fact, they will also offer less than what you have now for less than $12.95.
In other words, prices will not be going up for XM or Sirius after merger. It will only go down for the combined services.
PFreak Wrong... No Way.
---So, for those who violate the agreements like HistoryGuy, they'll save about $5 each after the merger.
No, you won't have to worry about be "violating agreements" after a merger. They merge, I'm about 90% sure I'm out.
Fair is fair, but some of you sound like old ladies with your "violate the agreement" talk. I believe I signed up for (and paid in advance) for XM service and Sirius service. I was not consulted when they violated the terms of out agreement by trying to merge into FUBAR radio. None of you seem to care about their end of the agreement that they are violating to my detriment. With this company first attitude you should all enjoy your new FUBAR radios.
Way right. Just because the people trying to get this merger past congress are willing to say whatever it takes to get it through doesn't mean any of it is true or will happen. I don't want a cheaper service that only carries music. I don't want to lose any of my channels and I consider channel consolidation losing channels. Once one of your favorites is gone perhaps you'll be upset too. And they will absolutely scrap the 2 platforms and merge into one. Maybe not next year but as soon as new radios are ready to go they will gradually phase out the 2 services and you will have to buy a new radio and pay either one price which will be more than $12.95 or you can get less content or you can add content in a tiered system and pay through the roof like you do with tiered cable. You're like a bunch a college students with a rosy worldview. Mergers are never good for consumers and always result in higher prices and a watering down of services.