GM Reduces Price For XM Radio Option

Wednesday, August 16, 2006 at 10:23 AM
Tags: 2, XM

GM
General Motors has announced that they are dropping the option price of factory-installed XM Satellite Radio by 39 percent. Starting with most 2007 model year vehicles, the price of XM is going from $325 to $199.

More than 60 percent of current GM customers with XM-equipped vehicles say they will prefer their next vehicle be equipped with XM Radio and 80 percent say they will recommend it to friends and family.

To date, over 4 million XM-equipped vehicles have been sold by GM. 

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Comments

This is great....but from what I saw the problem wasn't the price of the option it was the fact that people didn't like the service enough to pay $13 a month for it. Unfortunetly this might not help at all, we'll see.

This is very good news. This should help the number of trial subs as well as the conversion rate. (People who get XM as standard are more less likely to convert than those that get XM as an option--and this will make more people get XM as an option, thus helping the conversion rate)

-Lord Westfall

This sounds good on the surface, but if GM sells 1 million units with XM, who eats the 125 million lost in revenue.... certainly not GM.

Most reports I've seen have not suggested that the selling price was a/the limiting factor. Early reports suggested that customers didn't like the idea of an annual fee for service until they fell in love with it.

I think XM goofed and would be better to have added sub time which costs less anyhow.

Just an opinion.

Let's start another war and errode an already erroded martket. XM seems desperate.

Whether it comes standard or not I am not paying for it.

My salesmanger got it on his car and the dealer wanted the $325 or so for it. Bottom line he got the radio and didn't pay for it. He handled it like the undercoating, etc shit dealers put on.

More people are switching to Sirius in their GM cars because the tuners are cheaper than factory. Even if XM's factory option drops to $199, the SIR-GM1 will be $99, which will be $100 less.

Yeah, you're right. This is great news for Sirius. In fact, everything that has ever been posted on Orbitcast has been good for Sirius & bad for XM.

You Siriots are a bunch of fucking dummies. Morningstar gives Sirius a Fair Value Estimate of $2/share.

I'll say that again. Sirius' Fair Value is $2/share, according to Morningstar and their analysis of Sirius is very generous to say the least. Sirius is a HORRIBLE investment, and I have been shorting SIRI calls all year.

Tell Karmazin thanks for the $20K+.

Regards,

-Lord Westfall

p.s. Stern is an overpaid hack.

And your XM machine is a fantastic buy too, right? If you call yourself lord, you live in your mom's basement. Stop posting your gay little insults and go back to polishing your action figures.

"You Siriots are a bunch of fucking dummies. Morningstar gives Sirius a Fair Value Estimate of $2/share."

WTF does this have to do with GM reducing the price of XM radio option?

p.s. I guess O&A is your god?

You guys crack me up. Neither service is a good investment at the moment. After 5 YEARS they still can't manage to make a profit....Stern or MLB or (insert content here).


That being said, the price reduction is good and all, but NOBODY cares unless these OEM's start making SDARS as STANDARD EQUIPMENT.

Until that happens, these PR's are nearly worthless.

Westfall:

If standard OEM installs have a higher take rate than optional OEM installs, why is it that the take rate has decreased as XM has become more standard/more available in popular option packages?

Does it not make sense that if you make someone specifically order satellite radio that they're more likely to have made the decision coming in that they like satellite radio and thus to convert to a paying subscription after the trial is up? Such a person is more likely to listen to satellite during the trial (something I'd expect a certain percentage of folks getting cars with standard satrad never do) and decide that the content is worth subscribing for (as they've already researched what satrad is, as opposed to happening upon that whole new band of radio stations after they bought the car).

Leviarm,

Re-read my post. I agree with you.

-Westfall

AT $199 its a rip off. $199 gets you only 4 months of xm. At the end of August xm will be done for good... in any of my vehicles. Lucky GM is now putting a aux in on all '07's "for iPods" BS thats a aux in for the leader in sat radio, Sirius replay till a Sirius conversion box is available for the '07 radios.

Gonna be a whole lot of xm churn and xm built in gear taken out and dropped on the churb because of this terrible way to force customers into the crap called xm. Automakers should give customers choice.

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