Raising Prices? - Radio World

Raising Prices?

There's been speculation that the yet-unnamed satellite radio entity would raise prices if the deal goes through, given that it would have the only license in the U.S. satellite radio niche.
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There's been speculation that the yet-unnamed satellite radio entity would raise prices if the deal goes through, given that it would have the only license in the U.S. satellite radio niche.

Responding to an analyst question, Karmazin said Sirius hasn't raised prices in two years and that doing so would not get it more subscribers. Of approximately 14 million subscribers between the two companies, that's only about 10% of potential customers, he said. "We are trying to reach out to the 90% that have not subscribed."

They're assuming those people have a "sensitivity" to the price point.

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Tiered Pricing Plans Described

Separately, Mel sought to clarify a new pricing scheme, a confusing part of past hearings. He said, “Today you pay $12.95” to get each service. If the companies merged, “We would create a lower price package.” He threw out a possible figure of $8.95 a month “or some lower price” and said the merged entity “would be willing to work with regulators” on that point.