XM Canada raising prices (but not for satellite service)
In what seems to be an odd move, and even odder timing, XM Canada has notified their customers that they will soon be paying for XM Radio Online.
XM Radio Online (XMRO) is currently a free service provided to both XM Canada and the US version of XM Satellite Radio. But starting on September 1st of this year, XMRO will cost new subscribers an additional $9.99 (Canadian) per month. Existing subscribers will start off by paying $1 extra a month in September and the full $9.99 per month in September of 2008.
So when all increases are said and done with, an XM Canada customers who used to pay $12.99/month, will be paying a whopping
$24.98/month $22.98/month for essentially the same service.
In a time when Sirius Canada has the clear advantage in marketshare, and the uncertainty of the proposed merger is even more uncertain in Canada, raising rates - especially for a previously free service - just does not seem like a smart move.
XM Canada is in the content business, they need to understand that they have to promote the use of this content as much as possible... not punish it.