It's Official - XM Price Going UP!

[mwgiii]

I agree Scott.

XM is totally falling apart. 152 had such potential.

I cross posted my open letter to XM management to XMFan and XM411 and for the most part I was ripped by a bunch of blind "fan boys".
http://www.xmfan.com/viewtopic.php?t=38457
http://www.xm411.com/phpbb/viewtopic.php?t=11965

Look at the trend in subscribers and the "buzz" from the general public. It all favors Sirius.

What does XM do to get in the news: drop XMLM, lose Nascar, and raise prices.

Glad I won a Sirius radio from SatelliteGuys.

 

[LOBO2999]

I have a question and I didn't see it in the press release , are the ones who are locked into a 1 year deal be able to get the online XM for free as well ? By the way I agree this is not good news I have already drooped my XM service but my wife still has her's and I look for her to drop it after the year she paid for is over.

 

[rtt2]

11:44 (Dow Jones) Investors enthusiastically greet XM Satellite's (XMSR) plan to hike subscription prices. Shares up 9% to $31.32. UBS says the hike's impact to "the entire model will likely bring (free cash flow) and EBITDA break-even sooner than expected." Sirius (SIRI) also rallying, up 6.8% to $5.50. (JHS)

 

[rtt2]

28 Feb 2005 11:06 ET DJ XM Satellite Boosts Basic Svc Cost, Expands Svc >XMSR

WASHINGTON --XM Satellite Radio Holdings Inc. (XMSR) plans to raise the monthly subscription price for its basic service package April 2, but will also expand service offerings.

In a press release Monday, the satellite radio provider said the monthly subscription price for XM's basic service will increase to $12.95 on April 2.

Customers will be able to lock in the current $9.99 monthly rate with a one-year prepaid plan and deeper discounts with a two, three, four, or five-year prepaid plan until April 2.

On April 2, XM will begin to offer expanded basic service including Internet service XM Radio Online, which has more than 70 channels of XM music and talk programming, and the High Voltage channel featuring talk radio duo Opie & Anthony.

The services were previously $1.99 a month and $3.99 a month, respectively.

"This new pricing approach will help fund future technology development, enable us to offer more attractively-priced radios and maintain our programming excellence," XM President and Chief Executive Hugh Panero said in a written statement. "Together, these initiatives should result in XM exceeding its current target of 20 million customers by 2010."

Since the national launch of XM Radio in November 2001, XM has expanded its channel lineup from 100 channels to 151 channels and converted all of its music channels to a commercial-free format.

This has been the only price change since XM's 2001 launch.

Shares of XM recently changed hands at $31.46, up $2.73, or 9.5%, on Nasdaq composite volume of 4.87 million shares. The stock's average daily volume is about 5 million shares.

 

[BobMurdoch]

I disagree. I never wanted the online version of the service as $4 seemed like a waste to me when I have a SkyFi boombox in my office. Now I will use it regularly at work as well as at home on my computer. I already was getting O & A, so now the addition of these two items works out as a good deal.

In my mind they were just removing the competitive advantage that Sirius had with Howard and the online streaming being included in the monthly charge. Now things will be even. People are not going to switch to Sirius based on cost... only if they value the NFL, Howard, or NASCAR in 2006.

I still value XM for its deeper playlists, Baseball, Cinemagic, and UPop. I could care less about NASCAR going away, can't stand Howard, and only the NFL being on the "other" service hurts. Then again, my NY Giants are on a strong station in NYC that reaches the Jersey Shore easily, so it isn't too much of a hardship.

XM's stock is up 10% today and Sirius is up 7% as well. Both have slid since the beginning of the year, and this may reawaken interest in the two services by investors. Meanwhile XM is triple the size of Sirius from a subscriber standpoint and Joe SixPack won't figure out that NASCAR is leaving until 2006 so churn won't go up until Sirius starts running the "NASCAR - ONLY on Sirius) ads next winter.

 

[BobMurdoch]

One question, if we sign up for one of the long term plans to beat the deadline, do we still get access to O & A and the online service, or does the new "free" services come online once you start paying the higher rate?

 

[Scott Greczkowski]

Yes you get them if your signed up for month to month or are on a long term contract.

Cinemagic was GREAT yesterday.

 

[riggscm]

some good info posted here also

http://xmradio.com/serviceupdate/faq.jsp

 

[syphix]

It seems, though, that XM is always the one trying to "level the playing field".

Sirius is running commercial-free music channels, XM makes their music channels commercial free.

Sirius has a "public radio" channel, XM creates a "public radio" channel (although without my favorite show, "Prairie Home Companion").

Sirius is streaming online, XM streams online.

Oh, wait...Sirius is not charging extra for the online steams. So, XM removes the online charge...by making it an INCLUDED service, with a price hike.

What has XM done that LEADS, other than copy what Sirius is doing?? I'd jump to Sirius today if I didn't already have an XM radio and have an upcoming wedding I need to help fund. Are there any REALLY good deals for Sirius out right now?

 

[BobMurdoch]

Meanwhile, they have a 75% market share so they are doing SOMETHING right.

 

[syphix]

Meanwhile, they have a 75% market share so they are doing SOMETHING right.

IMO, that one thing they were doing right is gone as of April 2nd.

I didn't WANT O&A, I didn't WANT XM Online...therefore, I didn't pay for it. Now, I have to pay for it.

Seems to me that XM simply was not happy with the number of people subscribing to those services, and instead of including them FREE, they're including them for a cost. The fact that I could CHOOSE was the only real thing keeping me with XM recently.

 

[Stargazer]

XM came out before Sirius did so that probalby had something to do with the greater market share. XM probably figures that they can incur some churn and still be ahead in profits as a result of the 30% price increase.

 

[charper1]

Meanwhile, they have a 75% market share so they are doing SOMETHING right.

Yep, got to market first.

The higher share is mostly due to their advanced lead into the market. The $9.99 lower basic was a bit of a help until their users saw that meant no online and no high voltage, but now that has given way to what you have now. Given time, the market shares will even out. Maybe will will see a 3rd player jump in.

 

[seandudley]

Not if you have a "lifetime" subscription

Which I do . Unfortunately, I also have XM, and they don't have a lifetime option.

 

[seandudley]

Meanwhile, they have a 75% market share so they are doing SOMETHING right.

They were first to market, that's what they did right.

 

[bradley]

XMRadio Goes To $12.95 April 2nd - Two Year Plan Makes Sense - Save $95.81

I've been riding under my 90 day OEM expiring March 12th. After reading Scott's post I just signed up for the two year plan at $8.96 p/m ($214.99) that will initiate on March 13th.

I'm very pleased with XM, being a former Sirius client of two years.

It'll save me $95.81 (31%) over the duration of the two-year agreement. Thanks Scott!

It's transferable (radio-to-radio) or refundable (unused portion).

A third XM satellite was launched in leu of XM1 and 2 running at a higher power output. To increase their longevity the third is being placed around 85*. Output will be decreased on XM1 and 2 when XM3 is goes on line. XMRadio is expecting better coverage with the combination of all 3.

see: http://www.xmradio.com/service_subscription/service_subscription.jsp for Service & Subscription.

 

[HokieEngineer]

If you want the same songs that are on radio for the most part, go get sirius. If you want to listen to other music, get XM. At least thats the impression from hearing both. Sometimes I wish XM had more mainstream, then I listen to sirius for more than an hour and say "didnt i hear this song an hour ago?".

To those bitching about the price increase.. When was the last time you had a monthly bill for phone/cable/sat NOT go up per year? XM kept it at 9.99 since 2001. Thats over four years. They have also added a bunch of new services.

In my view, XM is being run fairly well. These past two months have had me concerned, but it seems the big wigs are looking out for the long term. The business has grown, and 3mil is no longer a small amt of subs. Profitability will be key in the next few years for the survival of sat radio.

Sirius has been playing catch up since the beginning. They are starting to do better, but I am concerned at the amount of money they are spending "one upping" XM. Money that is raised by selling more shares, furthering any date of profitability. Howard alone was 650mil. Add that to NFL, NASCAR, etc. I wouldnt be surprised to see them raise rates soon as well.

I would like to see the market surveys showing how many people actually LISTEN to a nfl/mlb game outside their tv area. I would REALLY like to see the # of people wanting to LISTEN to a nascar broadcast..

I think both companies should concentrate more on their core service.. MUSIC. Make that the best it can be and show people how great it can be compared to FM or digital FM. All this nfl/opie/howard/nascar crap reminds me of @Home ISP... They were a pioneer in the internet over catv wire biz.. Were great at it too. Then they starting buying up all kinds of crazy things, like Excite, bluemountain.com greeting cards. Spending big money on non core services, ended up bankrupt.

 

[reddice]

I might pay for the year to lock the 9.99 rate for a year. I don't mind the price increase since they provided me with much music.

 

[Sirius_Rich]

>>>If you want the same songs that are on radio for the most part, go get sirius.

Wow! :shocked

You must have some kinda good radio stations where you live. I'm here in Houston and never heard any terrestrial broadcast songs that I hear on Sirius' The Vault, Faction, Hard Attack, First Wave, Buzzsaw, Octane, Sirius Disorder, Underground Garage and Left of Center. And this is just the Rock category. If you listen to Sirius Hits 1 (top 40), you can hear most those songs (edited) on terrestrial. They are called top 40 for a reason.

We could talk about Hip Hop if you want too. You will never hear that Sirius playlist on terrestrial. What kind of music do you listen to?