XM and Sirius propose a la carte options
But only if they're allowed to merge
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XM and Sirius are dangling a new carrot in front of the Federal Communications Commission in order to get the green light to merge. The satellite radio companies say they will offer a la carte packages of their lineups if the antitrust regulators look the other way.
Okay, so maybe it will be a monopoly — but damned if they aren't trying to make that bitter little economic pill easier to swallow. Maybe even enough to rationalize a Hotelling's law kind of scenario.
The proposed plan comes in a couple of flavors:
- A La Carte Option 1: $7/month for 50 channels. Customers will be able to choose from XM or Sirius channels exclusively, with the exception of "premium" channels. Additional channels can be purchased for 25 cents each per month. "Premium" channels are available for $3 or $6 each per month. The maximum charge will be $12.95 per month. This option is only available for subscribers using next generation receivers who select channels via the internet.
- A La Carte Option 2: $15/month for 100 channels from either XM or Sirius. Choices on the other network, however, are limited to "the best of" channels. This option is also only available for next generation receivers.
- XM Everything: $13/month for approximately 170 XM channels.
- XM Everything & Select Sirius: $17/month. All XM stations and a few Sirius ones thrown in. Customers can use current equipment.
- Everything Sirius & Select XM: $17/month. All Sirius stations and a few from XM. Customers can use current equipment.
The companies also proposed a "Mostly Music" package that contains approximately 65 music stations (plus one religious station and one emergency and weather station) for $10/month. Also proposed; a "News, Sports & Talk" option that contains 60 stations of...well... Both options will be available to customers using current equipment as well.
You can grab a PDF of the proposed lineup for Sirius here and for XM here.
On Tuesday, XM and Sirius will file their joint reply comments with the FCC which will include the new pricing plan. Many in the government have been sweet on a la carte pricing for media providers, and such a move may finally tip them in merger's favor. ®
COMMENTS
Pay for Radio?????
Why would I want to pay for radio? I know it may be good for people who live in remote areas and people who commute long distances. What does it offer over traditional radio? NTFM.
Sure, but for HOW LONG?
Until they raise all the rates and slow let commercials creep in. A year? Two? Whatever, cable's monopolies on areas has already proved to suck. It's only with FIOS and satellite that they've been forced to raise their level of service. Let them compete and run out of money, when they go broke a smarter company will step in, by their equipment, and learn from their mistakes. In other words, not spending millions of dollars on Opera and Stern or other celebrities who aren't worth it.
I like choices
The only thing keeping me from either service was $13/month. If I can get 50 or so commercial free music stations for $7, I'll bite, assuming none of the all-music chanels I want are "premium". I don't want talk, commercials, or anything else, just music. Radio in my area of the country sux, so I use MP3 only right now. Streamripping helps keep the collection fresh, but it's a lot of work keeping that sorted, rated, and stuffed into iPod shuffle...
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