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Monday February 28, 2005 6:02 pm
XM To Raise Monthly Fee
XM has announced a price increase for their satellite radio service effective April 2, 2005. The increase will raise the now current rate for their basic service of $9.95, to $12.95 per month. They are also going to include two premium services free of charge. Those two premium services are XM’s online radio access, and the show “High Voltage”. These two services are currently offered at a price of $3.95 and $1.95 respectively. What seems to be a good deal deserves a second look. Sirius, XM’s competitor, offers online satellite radio free of charge on its basic plan of $12.95 and states it will allow subscribers to listen to Howard Stern free of charge when his program launches next year. If you are a current subscriber, you may lock in the rate of $9.95 for the next 5 years. Now that these two services will be the same price, the decision on what service to purchase will be based on what truly matters – hardware price and quality. Expect to see hardware price cuts in the coming months.
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| Reuters
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