Sirius and XM Announce New Post-Merger Pricing Structure

The combined Sirius Satellite Radio and XM Satellite Radio announced that they will offer subscribers in America the opportunity to choose a la carte programming for the first time, according to a press release. Sirius and XM will file details of the plan with FCC on Tuesday.

The new plans will start at $6.99 a month for 50 user chosen channels, compared to the current rate of $12.95 a month for a standard satellite radio package. Under the proposed plan, subscribers could ad additional channels for 25 cents each. An additional a la carte option allows users to select 100 stations and will allow XM and Sirius subscribers to choose channels from both networks. The "Best of Both" a la carte package will be available on either service's receivers, eliminating the need for devices from XM and Sirius. Currently, if a subscriber wishes to listen to programming from each company, the total price for both subscriptions is $25.90. The new service would be available for $16.99 a month.

In addition to the a la carte offerings, the filing also details plans for family-friendly subscription options. Subscribers choosing the family-friendly option can block adult programming and will receive a price credit for channels that are blocked. According to Sirius-XM, the new plans offer a price range of $6.99 - $16.99, making satellite radio available to more customers.

The new options will not be available until the FCC approves the merger of the two satellite radio giants. According to a press release from both companies, there will be eight new programming options within a year of merger approval.

"Mel and I are very excited about being able to offer a la carte programming. We think this is going to be great for consumers and great for our business. From the day this transaction was announced, we promised that the merger would enable us to deliver more choices and lower prices for consumers. In our filing tomorrow with the FCC, we will offer detailed plans regarding how we will achieve those goals. These plans will further demonstrate why this merger is overwhelmingly good for consumers and in the public interest," said Gary Parsons, Chairman of XM Satellite Radio.

The combined companies will also offer interest-themed packages for music, sports, and new radio for reduced prices.

Siruis and XM announced a proposed merger last year. The merger is awaiting FCC approval, and Sirius and XM have introduced new offerings and package plans in an attempt to convince regulators that the merger will be good for consumers.

Source: Sirius and XM Press Release: (http://media.prnewswire.com/en/jsp/latest.jsp?resourceid=3519647&view=LOCAL)