What Would a Subscription Price Be? - Radio World

What Would a Subscription Price Be?

Several articles this week have mentioned that consumers are confused over subscription prices for satellite radio now, and later, should a merger go through.
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Several articles this week have mentioned that consumers are confused over subscription prices for satellite radio now, and later, should a merger go through.

Both XM and Sirius have begun ad campaigns to address this to try to reassure current and potential subscribers.

In this week’s hearing, Rep. Markey, tried to get Karmazin to clarify the issue. Karmazin said that if a subscriber wants both NFL and MLB programming under the current system, the price would be $25.90, which would be the combined monthly cost both satcaster services.

Karmazin said if the merger were approved, prices would drop “significantly.” Rep. Markey pressed and asked if one person wanted both the NFL and MLB, how much of a significant price decrease they could expect, “$10 or only $2 off?”

Karmazin said the figure would be closer to $10.

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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.