No, XM-Sirius Merger will NOT double monthly prices - Orbitcast

No, XM-Sirius Merger will NOT double monthly prices

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XM-Sirius MergerI wanted to ignore this - because it's just so outlandish and completely incorrect - but I've been getting so many emails all day that this post simply needs to be addressed.

A recent post on The Consumerist which features the wonderfully scandalous headline: XM-Sirius Merger Will Double Monthly Prices? is wrong. Pure and simple, wrong.

According to "a customer service rep" (-10 points instantly), a tipster has told the normally-useful blog that XM Radio's prices will "roughly double" by May.

Here's what was supposedly said:
"This is strictly confidential, but all the paperwork is signed and ready to go, and XM has fully acquired Sirius Radio. Come May, there will be a substantial price increase for XM Radio, as it will, in June or so, host all the Sirius channels. It would be best to simply extend your XM plan as we will honor your current contract price per month before we begin hosting the Sirius stations."
How many holes do you see in that statement?

CheeeeeeeeseThe problem I have is that back in July of last year, Sirius and XM outlined their pricing strategy post-merger. And in front of multiple Congressional hearings, and for countless times throughout the past year or so, we've heard the "more choice, better prices" mantra repeated over and over again. Yet, when a single outsourced customer service rep (if such nonsense even came from this source) says something completely ridiculous like this, everyone perks up and listens.

Just so we're clear:
Everything, and I mean everything, from that quote above is wrong.

[The Consumerist]
Thanks to everyone who sent this in!

50 Comments

I discovered Consumerist recently and had been reading it regularly, but I've begun to notice too many entries like this one that just don't deserve to be posted. They need to either retract it or make some serious corrections, since they posted something that's known to be wrong, and too many people don't read to the 80th comment, where the idiots stop and the people who actually know the facts usually chime in on that site.

Besides, SIRIUS is acquiring XM, not the other way around.

http://www.theglobeandmail.com/servlet/story/RTGAM.20080324.wsat_radio0324/BNStory/Entertainment/home

"Washington — The U.S. Justice Department on Monday approved Sirius Satellite Radio Inc.'s proposed $5-billion (U.S.) buyout of rival XM Satellite Radio Holdings Inc., saying the deal was unlikely to hurt competition or consumers."

No it won't "double monthly prices" but the "merger" MONOPOLY will RAISE prices, and worse consumers will be paying more for less. "merger" = MONOPOLY

fitting graphic above with the BIG DOG Sirius shitting out whats left of xm. Learn it, Know it....

I expect a price reduction with or without a merger.

Sat radio now has enough subs that ad money becomes a huge factor.

When something new comes out the price is high and as sales slow down the price goes down to get those that would not buy for the high price. That is a normal way of doing business. Satrad has more reason than just getting people that would not buy at the high price because the more subs the more ad dollars.

The balance of price to what brings in the most money is the sweet point and the sub price as it is now is not at the sweet point.

Sat radio is not going to price itself out of the business

John sadly what is expected is not reality.
Cable prices UP,
DirecTV prices UP.
Sirius/xm "merge" MONOPOLY prices UP.

Less service, no choice, no competition, HIGHER PRICES.

I love how the Sirius logo looks like it's crapped out a steaming pile of XM.

I'd like to see a picture of the Sirius dog , taking a dump , on a picture of David Rehr .

This really sounds like a load because for XM to add all of sirius' channels they would have to delete most if not all of their own because they (XM) say they have to turn so many channels to their favorite loop (the program you are looking for has not yet started) or the sound quality will turn to an extremely poor sound with all the music channels being on.. or so they say..

really, who cares. just sayin

I posted a few days ago; I'm still wondering what people think. I have a lifetime subscription to Sirius, and my gut tells me that they haven't released pricing info for lifetime subs yet because the pricing will go up to the $799-$899 range. I have no idea - just a feeling. So, buying a lifetime sub now would save consumers about $300-$400 - I'm guessing that's why they haven't mentioned it.

There's no way that they would screw me over, right? I bought the sub about 6 months ago, thinking it might be a good deal when they merged.

If their prices go up, their stock is going to sink like a stone. They're staying afloat these days because of their high customer retention rates.

"The prices will go down." ROFLMAO!!! I'll remember you said that next time I pass a gas station which sells gas at .30/gallon! No, I think that the best we can expect is that the price increases will be moderate when they happen.

Price decreases...

"The prices will go down."

That's what I don't get. They couldn't go any lower. Mrs. RFNT240 bought a Mazda product a year ago, with 3 months free SIrius. A year later, it comes in loud and clear. Total monthly fee: $0.00. All we have to do is hang up on a Sirius rep once a month when they call trying to "reactivate" the account. I'd be willing to bet that 1-2 million of Sir "subscribers fall into the same category.

Every time there is a merger of any company, people get fired, prices go up , and service sucks. that is the way it is, if you think prices are going down, you are fooling yourself.

I'm sure the prices will drop if you include the a la cart and family friendly plans that they have been pushing into the equation. Of course, first they'll have to develop new radios which will probably cost more than many of the current radios and if the a la cart customers want Howard Stern or NFL or MLB they'll have to pay $6.00 more which would equal the price of a standard subscription though just $3.00 more for O&A.

But what really sucks and where the D.O.J. is wrong and where Jim Crammer and Howard Stern continue to mislead people, consumers will have to get the equivalent of two full subscriptions if they want both the NFL and MLB.

PLEASE...no one listen to anyone who posts as "anonymous coward" and says that the merged company will raise prices or that this is a monopoly.
First and foremost, they could not raise prices without losing subscribers. Which is why it is NOT a monopoly. They compete with a service(s) that is free. They cannot exercise monopoly power. In other words, they cannot raise prices and maintain demand.
Second, the FCC will almost certainly place pricing restrictions on the companies.
Third, it would be STUPID to raise prices. That just wouldn't work--you morons. I would stop subscribing if they did and they know this.

Mary Schmich wrote the words to Sunscreen in her column of the Chicago Times on June 1st 1997.-- here's just one tiny excerpt:

"Accept certain inalienable truths: Prices will rise. Politicians will philander. You, too, will get old. And when you do, you'll fantasize that when you were young, prices were reasonable, politicians were noble and children respected their elders."

--- and of course, publishers will quote texts incorrectly -- and they will get quoted and re-quoted when those words seem disadvatageous to the consumer, the poor consumer...

Thanks for spotting this irritating error!

Of course prices can and will rise. Why would a monopoly worry about losing subs? Where are you going to go? My cable bill is $150/month. What am I going to do? I'm not going to stop watching TV and I'm not allowed a satellite dish where I live so I keep paying.

When XM/Sirius raises prices by $1 - $2 a month you'll pay it because it won't seem like much, certainly you're not canceling over a dollar, but you are getting screwed. And when you factor in the cost of a new receiver, any a la carte cost savings won't be realized for at least 2 years, at which time you'll probably be buying yet another receiver. Of course, that's for a music-only plan. Add anything else, MLB, NFL, O&A, Stern & you'll be paying more today than you were before the merger.

Use your brain. Lets say a new, a la carte capable receiver costs $200. You save $7/month by going with music-only. You now save $84/year. It will take about 2 and a half years to realize any cost savings due to the purchase of that $200 a la carte capable receiver. Great, what a merger. It's certainly in my interests...

The quote would be understandable if the intro said "According to the NAB..."

Common sense will tell you that prices will eventually go up. The chips are ndoubling in size. That means double the material need to produce the chips. Hopefully, the prices of the recievers don't go up to much. Or better yet, maybe Sirius/Xm adopt then Cell phone Companies deal and give away recievers with a signing of a contract.

Prices won't double right away, but they will steadily go up, because no matter what they cll the company, they still have massive debt,and they have to pay stern and his possi an insane 500 million. I see nothing but price increases. The powers that be have ruined a great concept by over paying talent. The consumer NEVER wins in a merger.

Xm and Sirius would be CRAZY to do something like this. What better way to say NO MERGER and loose current customers! People always blow something out of portion.

If the price goes up i will no longer subscribe and i know at least 5 peiople that do not have sat radio because the price is to high.
Sat radio is not a must have like tv.
If you live for radio like spending hours a day in a car it is worth the money but so many people do spend enough time with radio so for them it is not worth the money.

Sirius has been happy with friends and family and that shows the price is not going up.
XM gives back half the sub money to GM soy they are happy with half the money.

Apparently there are many fools who don't believe that lying to congress is a crime. The prices are written in stone thru 2010. The price for all of the current receivers will never go higher - at least at the same service level. If they offer more content than before, they will charge more AS THEY SAID. I don't understand all the conspiracy... They have annouced publicly their price plan for 3 years.

But hey, wear those tin foil hats. Losers.

Why not msandmann? Why worry about what others are posting? Because it shows the fanboy spin about this "merger" MONOPOLY is complete BS.....

"PLEASE...no one listen to anyone who posts as "anonymous coward" and says that the merged company will raise prices or that this is a monopoly."

Prices WILL go UP
Choice WILL be GONE
Competition WILL be GONE

Get used to the TRUTH satrad fanboy. If you think we have problems with what Sirius and xm provide customers now you all are going to be upset at what a "merged" MONOPOLY Sirius/xm provides.

Keep on dreaming of the a la cart and family friendly plans saving the consumer money.

Frank Patterson think your screwed "lifetime" sub with Sirius just might mean nothing when the company changes. Sure would'nt be encouraging anyone to buy anything Sirius/xm especially anything in which your promised "lifetime" service. If this "merge" MONOPOLY happens content could turn to shit without competition guess who still wins... not you.

John hate to break it to you but TV is NOT "must have" either. satrad prices will not decrease, but they will INCREASE while customer choice and competition is removed.

If for some reason the FCC fails to STOP this MONOPOLY, If this "merge" MONOPOLY happens we will all be paying more for less. At least those of us who don't have a backbone to not allow our money to support a MONOPOLY.

How soon after the FCC's approval will we be able to access XM Select or Sirius Select on our existing radios?

And will the merger result in Opie and Anthony and Ron and Fez actually being funny?

I am a lifetime susbsciber to Sirius. I paid approximately $560 including taxes for this lifetime membership. Does anyone have any idea what will happen to my membership. Hopefully I am grandfathered in to everything.

IF this "merge" MONOPOLY is allowed to go through Opie and Anthony and Ron and Fez will be off the satrad airways. As Sirius takes over alot of crap content and crap talent which are bandwidth wastes which will have to go to make room for the real talent and content consumers want. Nobody has a solid answer but what happens to the content on both satrad networks which has limited consumer draw? What happens to the major content players MLB, NFL, NHL, NASCAR, IRL.... if The "merger" MONOPOLY goes through? The "merger" MONOPOLY makes bandwidth tighter, The "merger" MONOPOLY could make the patrons of the major content pay more to listen to a "merger" MONOPOLY. Not at all a good consumer move which the major content players are very aware of.

sudsman,

"grandfathered in to everything" HA it's a new "merge" MONOPOLY company it's not a charity. Should have known better there is no such thing as "lifetime" when it comes to media and technology.


"The prices will go down." ROFLMAO!!! I'll remember you said that next time I pass a gas station which sells gas at .30/gallon!"

Brilliant analogy, right folks?

In any case, why even agonize over this? Especially since most people are talking straight out of their asses.

Max again is "talking straight out of his (their) ass(es)." The TURTH upsets satrad fanboy folly.

Sirius/xm "merge" = MONOPOLY

Yeah, the "TURTH" is a hard thing to accept.

LOL. God bless the Internet!

IF this "merge" MONOPOLY is allowed to go through Opie and Anthony and Ron and Fez will be off the satrad airways. As Sirius takes over alot of crap content and crap talent which are bandwidth wastes which will have to go to make room for the real talent and content consumers want. Nobody has a solid answer but what happens to the content on both satrad networks which has limited consumer draw? What happens to the major content players MLB, NFL, NHL, NASCAR, IRL.... if The "merger" MONOPOLY goes through? The "merger" MONOPOLY makes bandwidth tighter, The "merger" MONOPOLY could make the patrons of the major content pay more to listen to a "merger" MONOPOLY. Not at all a good consumer move which the major content players are very aware of."

Sounds like Stack copped some Purple Haze.

I love satellite radio. However, history shows that this kind of move ALWAYS increases price. Mark my word, they will slowly jack up fees over the next year. A buck here, a buck there. Then some idiot marketing golfer will anounce a new "Expanded Deluxe Premium Mega Package (Ultimate Edition)" by Christmas. And prices will skyrocket overnight. It's happened with cable. Happens all of the time with cell phone plans. They'll certainly do it with XM/Sirius. Hate to say it. But with America's stupid economy collapsing and the savage Arabs jacking up gas prices, sat radio will have to get cut off.

A Big Mack costs a dollar and it has been that way for a long time even with everything else going up.
Satrad is a luxury and that is what is going to make for lower prices.
Expect some free channels if regular radio makes money with them satrad can also.

Only thing with that they will have to pay full price for the radio if they do not have a sub.

It is a huge country and outside the big cities people make much less money and do not spend much time on clogged highways like city people do. Right now the price is to high for most of them.
Price yourself out of the market and you have no market.

I just got the bill for next year and my wife said are you sure you want it we don't spend that much time listening for that money.

A lost customer for satrad is more than a lost customer because satrad pays to get that customer.

Ray- hold it right there. The Arabs are NOT driving up the gas prices. First things first, we import more oil from Canada than anyother country in the world. Don't believe me look it up. Sure add up all the OPEC nations we do get a lot from them but Iraq is not even in the top 5 last time I checked.

And the all important thing. If you want to complain about who is driving up gas prices go to a little street in Manhatten called Wall Street. Speculators are the real culprits that are trading fuel futures back and forth to make money. Wow sound familiar. I believe Enron did this. http://www.closetheenronloophole.com/

Next you are going to say that a Windfall profits tax is a good idea. Please

I am a cunt.

you people writing about price raises really have no clue?....its obvious they will not raise prices if they go up against products that have NO subscription plan!!!!!! they are the only service in the music dept. that charges us u donkey's!!!!! its obvious most people will leave including myself if they pull that on us!...if you like what you have keep it they wont charge you anyway with the FCC not allowing them anyway if you are scred!@

>>> I expect a price reduction with or without a merger.

Now, that's funny.

They're being handed a monopoly and you actually think prices are going DOWN?

I"m sure they'll give it a reasonable grace period. But everyone here realizes they lost 1.6 Billion in '06, over a billion in '07, subscriber growth continues to collapse (although, there is hope with strong OEM support in '08) -- and they will spend 1/4 billion to make the merger happen and have to spend another billion if they end up keeping SIRI's satellites going.

How in hell can you possibly think there are going to price reductions?

Man, you people are friggin' crybabies!

If prices DO go up and you're pissed about it,....here's an idea.. don't pay it!! Satellite Radio is not a neccessity! Personally, I'm sticking with exactly what I have. If the price goes up in the future, I'll re-evaluate whether I want to continue having Sirius.

Stop whining folks, you're not bound to anything!


I like the world you live in where everything is so black and white. You say the following about the pricing power of the merged entity, "First and foremost, they could not raise prices without losing subscribers. Which is why it is NOT a monopoly. They compete with a service(s) that is free. They cannot exercise monopoly power. In other words, they cannot raise prices and maintain demand."

Either you chose to ignore history or you haven't researched the facts. XM did raise its rates from $9.99 to the current $12.95 and did not lose any subscribers, in the final analysis. The company justified this based on going to an all commercial free program, and yet we still have commercials on the music channels.

I agree with many of the posts that most people will not leave over a $1-$2 monthly increase, as it is below the "gripe" factor.

I can tell you for an absolute fact that if this merger is not approved, XM has plans to increase the monthly subscription fee to $13.95/month and that the plans for that were "baked" over a year ago. The company needs additional reveue to sustain itself. I can't speak to Sirius' - non=merger plans - but I suspect that because its financial situation is slightly more dire, it has similar plans either in the oven or on the cooling rack.


Isn't today April 1st? As in, April Fools Day?

Just sayin...

As long as I can get my dern NASCAR and my Panthers in one place, I don't care what it costs......

All I know is when Stern is gone, so am I. Think about that. How many other folks have the same idea?

Sorry, I guess the prices are "set in stone until 2010" although gee, that's only about a year & a half away.

I can tell you for an absolute fact that if this merger is not approved, XM has plans to increase the monthly subscription fee to $13.95/month and that the plans for that were "baked" over a year ago. The company needs additional reveue to sustain itself. I can't speak to Sirius' - non=merger plans - but I suspect that because its financial situation is slightly more dire, it has similar plans either in the oven or on the cooling rack."


Isn't it amazing how everyone knows precisely what the company is doing without any public knowledge?

I hope the much better sound quailty of Sirius ( 7 times better ) over XM is not heart by the merger.

p.s. above statement is a callback to a few days ago.

sorry spelling, hurt not heart

Of course prices can and will rise. Why would a monopoly worry about losing subs? Where are you going to go? My cable bill is $150/month. What am I going to do?
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Pull out the rabbit ears and watch for free.

It's a lot easier with terrestrial radio. Enough with the prices going up nonsense.

This really sounds like a load because for XM to add all of sirius' channels they would have to delete most if not all of their own because they (XM) say they have to turn so many channels to their favorite loop (the program you are looking for has not yet started) or the sound quality will turn to an extremely poor sound with all the music channels being on.. or so they say..