Sirius XM Set To Raise Prices
By Jeffrey Hyatt
Up, up and away go the cost of subscribing to satellite radio. According to leaked documents currently making the rounds across the ‘Net, it appears that every subscriber to the Sirius XM satellite radio service will be paying at least $2 more per month beginning this summer.
Why the bump up in fees? Because in August Sirius XM would (finally) be able to raise fees to cover the costs of royalty payments to the record companies. It seems that as part of the merger between Sirius and XM, the FCC allowed the new company to pass along royalty fees to subscribers, effective July 29, 2009 — while Sirius XM was required to absorb the fees itself before this date.
According to the leaked document…
“The FCC decision approving the merger between SIRIUS and XM allows the company to pass through to Subscribers any federally mandated increases in music royalties that we must pay, since March 20, 2007. The FCC decision allows us to pass through this fee increase to our Subscribers and the company has chosen to do this with the U.S. Music Royalty Fee.
The US Music Royalty Fee will be applied to all music subscriptions that SIRIUS XM offers. The fee will be implemented on July 29th, 2009.”
And look here: the July 29 date is fast approaching and with it a newly instituted rate increase.
Click here if you’d like to read the unofficial leaked document
Things haven’t exactly been too cheery since the Sirius XM merger, but perhaps the rumor of their hyped iPhone/iPod App debuting at the Apple World Wide Developers Conference this week might be a harbinger of good press and even better customer interest.
The iPhone App might help (you need a Sirius XM subscription, FYI) save the company in one form or another, but for now the rate increase for subscribers can’t be going over well.
Are you a Sirius XM customer? How do you feel about the rate increase?
Monday, June 8, 2009 4:57PM
looks like I'll be cancelling this
Monday, June 8, 2009 11:28AM
I have been a long time xm, now sirius xm subscriber. I don't mind the price increase at all. If they have to pay royalties to the record companies, the costs should be absorbed by the customers. I have 3 radios on my account, im hoping it is $2.00 per account. I avoided the extra $2.00 by having long term subscriptions on my extra radios. My problem would be that if I have to pay royaly fees, then other services like Pandora and Slacker users need to pay too! It is unfair if other services can be free and sirius xm has to pay these fees and pass them along.
Monday, June 8, 2009 11:47PM
I love my XM. I would hate to go back to the normal radio feeds. I know im paying money to listen to radio, but, really, the selection of songs i get, and the plethoria of stations available to me in my car as i travel or go to work, is worth the extra $2. Hell id pay more to keep this service going.
Tuesday, June 9, 2009 2:13AM
Should have gotten the lifetime, like mw
Tuesday, June 9, 2009 5:45PM
Canceling. I was a HUGE fan of satrad, but have been on-and-off again about XM for several months now. The programming is worse and the audio quality has deteriorated greatly since the merger. Amazing how this company has screwed over its loyal PAYING customers, too. Here's an idea: How 'bout getting rid of Oprah, Martha, Ron & Fez, Opie & Anthony, etc. and continue to absorb the cost of the royalty fees instead of raising prices?
Tuesday, June 9, 2009 8:38PM
Well don't like it a bit.. but what can you do? nothing I guess I will drop a another one of my extra subs i have so i can pay for this …..
probably others will go that route also so i don't see this as being good for satellite radio..
Wednesday, June 10, 2009 12:13AM
More on this and the movie about Sirius XM at
http://satwaves.com/blog/2009/06/09/news-media-si…
Tuesday, June 9, 2009 10:25PM
I would easily pay more to the best radio service around. Old radio is un-listenable. So utterly bad I would rather rip out my eardrum then listen to another commercial.
Tuesday, June 16, 2009 3:42AM
Cost should be going down not up since the merger. They are losing customers not gaining. Why would they now charge their existing customers an extra $2 a month? Bad business move IMHO. They should have just absorbed this into their existing rates and said nothing.
Wednesday, June 17, 2009 2:24AM
I canceled. They started with the $2 extra for each extra radio, the $3 per online account and now the royalty fees. Me and my 3 radios said goodbye. Now 4 days later, they are calling, emailing, surveying like crazy to "get you back". I would have never left if I didn't feel like they were exploiting me.
Thursday, July 2, 2009 2:28AM
I agree with the cancelers. I've been signed up since 2000. Karmazin made really bad choices. And Stern not canceling vacations to bring listeners back when they really need it is bullsh*t. I really wanted them to succeed. Was a stockholder. Was a huge supporter. Now, was a customer.
Sorry Sirius, don't tell me your "U.S. Music Royalty Fee" equals $2/mo. Tell your stockholders and subscribers that the raise is because of the XM merger. You owe for double the rights. With no money!
Also, the sound quality is worse. And the online extra fee was also bullsh*t.
Sorry Stern, Sorry Bababooey, Sorry Artie,
I'm Out
Wednesday, July 8, 2009 3:33PM
I am not paying their fees from the government, so as THE BOSS that makes their wheels spin I am firing them immediately. This is B.S. !!!!! Bye Bye as I watch the satellites go down in flames.
They cannot do this to their customers like that. They are getting to be like the cable companies!!!
It has to stop somewhere. We just cannot be getting nickle and dimed to death as Obama wishes.
Wednesday, July 22, 2009 3:52PM
Saying goodbye with our 6 radios.