Note to Sirius XM CEO Mel Karmazin: When you talk to anyone besides Wall Street analysts, don’t sound so gleeful about your plan to raise your basic $12.95 a month subscription rate later this year. Karmazin told analysts Tuesday in his quarterly earnings call to “think of a number more than” the inflation rate so Sirius can recoup some of the huge payments it’s been making for the NFL, Howard Stern, and other programmers. Karmazin is salivating for the end of July and the expiration of the 3 year moratorium on price hikes that he promised the FCC he’d make in 2008 when regulators allowed Sirius and XM to merge into a satellite radio monopoly. The freeze is widely expected to end, although there’s been some talk at the FCC about possibly extending it. Government officials have allowed Sirius XM to pass along higher fees to cover music royalty payments and for special services including Internet access. Karmazin is in no position to plead poverty, especially as the economic recovery helps auto sales — Sirius XM’s biggest suppliers of new customers. The company reported net profits in the first quarter of $78 million, up nearly 86% vs. the same period last year, on revenues of $724 million, up 9%. Profits, at 1 cent a share, matched what Wall Street analysts expected. Sirius also reported that it had nearly 20.6 million subscribers at the end of March, up from 20.2 million at the end of 2010. The company says it expects to add 1.4 million customers in 2011, and raised its cash flow forecast for the year. Karmazin says he would have projected even better results for 2011 but wants to see first whether Japanese auto makers will have to slash production as a result of the recent earthquake and tsunami.


If the rates are raised, I won’t renew my subscription. I have an iPod, and a Kindle. I don’t really need the sat radio anymore.
Just cancelled mine at the end of July. Tired of paying for programming I don’t even want. They need to make programming like Baseball, Oprah Network, Howard Stern and the rest a special paid packages.
People who just want the basics should not have to pay. Also, why when I started with XM I could get a discount for extra receivers. Now I have to pay the same for each? Not exactly making me want to buy more receivers. Although it will be missed at times especially on long trips. I can’t say the service is worth what they are charging unless you spend a lot of time in your car.
SAT. RADIO IS GREAT !!! RAISE THE PRICES WHO CARES $$$$$$$$$$
I LOVE my sat radio – LOVE Howard – but at what point is it just too much? The rates keep getting raised AND then you have to pay extra to get it through your computer AND THEN there is ANOTHER FEEE to have the sound “CD” quality on your computer. The sound SUCKS without it. They keep jacking up the subscription and then they throw in extra fees to make it LISTENABLE. Isn’t the increase in subscribers helping the costs? Price it too high and you will lose who you have.
You still have not consolidated XM & Sirius. I have both systems and already pay enough so you will lose 2 accounts from me. I have other resources for some of your content and others –good luck to you now that you have a monipoly on Sat radio
This brings up a good point that i don’t think a lot of people who don’t satellite radio realize. when XM and Sirius merged, they didn’t actually do so. each system held back its heavy hitters and force the other subscribers to buy a best of package. So for instance, if you had XM, but now wanted the NFL and Stern, you would have to get the Sirius best of package on top of your subscription. if you had Sirius and wanted O&A, NBA, MLB, etc, you would have to get the XM Best of package. Complete crap.
The only reason i got XM in the first place was for Ron and Fez. Plus I had an extremely long commute and it was great to be able to record programming (I have handhelds, not car systems). but this is out of control, and i no longer have that commute. bye-bye! Satellite is really great on cross country road trips (no searching for stations), but not THAT good.
So the consumers are supposed to pay for Sirius’ expensive blunders. Signing Howard Stern to another bloated contract was executive stupidity at its finest. Howard doesn’t care about the content and the show is nothing but an occasional borefest between vacations. Sirius should have used that money to develop new interesting, current radio shows and expand their music playlists.
Meanwhile Opie and Anthony are extremely bitter about their renewal and the lack of money they received.
Hey Mel–
My wife and I are a couple of your longest-term, most loyal subscribers, but here’s what’d you do well to bear in mind (and my guess is that we speak for a lot of your other customers).
Even though we have Sirius XM on both our cars, and have faithfully paid you those fees for years, we listen only to news and classical music….and Radio Disney when our kids are in the car.
In other words we listen to….stuff we can get on the regular AM/FM dial. We like it better on Sirius XM, because there’s more choice and fewer commercials (although that seems to be changing). But we can we get all this on the normal radio dial, even Radio Disney, which is 1110 AM here in L.A.
We do not listen to your NFL package (football on the RADIO? Thanks just the same), and we certainly don’t listen to Howard Stern. So when you pay through the nose for that programming, and then try to pass those inflated costs along to us, guess what we’re gonna do, genius.
In fact, your attempts to gouge subscribers like us are so outrageous that I might just call and cancel both our subscriptions today. My way of voting on your plan.
Wall Street take heed.
Totally have to agree here.
My food bills are up.
My cell phone bills are up.
My cable is up.
My gas, electricity, and water have skyrocketed – not to mention all the other costs associated with owning a house.
And now, AT&T in LA is about to start metering broadband.
Last summer, I got Sirius free with a new car. My wife and I just had a discussion about it: It’s good, but is it worth $156 a year? Yes, we can probably negotiate a lower rate. But of all the luxuries that we now consider necessities, is it worth it?
Maybe if you listen to Howard Stern. But we don’t. But almost everything else on Sat Radio is duplicated somewhere else — or on my iPhone.
It seems to me that Karmizan doesn’t have a clue about the economics in the real world today.
What the. The FCC should look at this combo’s customer service because it sucks and is outsourced (of course). First they stole money out of my bank account, I’ve yet, yet to receive a invoice, a copy of my contract, nothing, nothing in the mail or email. And yea I’ve called and called and called. Before they get one more dime from ANYONE – FCC do the right thing and this sorry company in gear. For once stick up for consumers and not corporate thieves like this. Service service service!
Remind me again how mergers like this are good for consumers?
If he wants to make more money he doesn’t need to raise the rates, just start enforcing them. I have had the service for 3 years and have yet to pay even 50% of the listed rate for the service, usually even less than that. I keep buying “specials” in 3-6 month segments at a time. Every time the “special” discount expires I call and say I’m ready to cancel and they transfer me to a special department that starts offering deals. Sometimes I keep saying no 2-3 times and the deals keep getting better. One time I just told them “this is what it will take” for me to stay and they just said ok. I have paid as little as $4/month for six months (after the first six months were free). I can’t imagine paying more than half the $12.95 rate and would quit if I had too. My latest renewal was just a few weeks ago at $6/month, the highest I have paid yet. So I seriously doubt they have changed their policies about deeply discounting the subscription rates. Someone would have to be a serious chump to pay rack rate with them.
Most people don’t have the time or inclination to game the system.
U can steal Howard on every torrent site
They raise the rates-my 3 accts are gone
Increase the price of product there is little demand for. Brilliant!
Since when is 20 million people little demand. FACTS! They stink.
Im not paying the hike. My new fav toy is Pandora. Sorry, Sirius.
I love the games Sirius XM plays with customers. After your free 6 month period, you get your notice. Disregard the notice. Let the free period lapse. Then they offer all kinds of discounts and inducements to get you back. 50% off.
Still, not worth it.
Raise your price and lose current customers and lose new ones. It is really dumb to brag about how you’re planning to raise your rates. Heck, call up the FCC to tell them not to let them raise the price.
If people are worried about their jobs and paying the bills and need to cut back, what are they going to cut back on? Seeing the CEO of XM eager to raise their rates would probably cause some to say they can’t afford XM anymore, better cancel and not renew the subscription.
I am a subscriber, and I consider it a luxury. I will cancel the moment there is a rate hike. What a misstep.
I’d happily give up the Howard channels I don’t listen to and access to any and all sports. Sports on the radio is an absolute last resort for me. It’s as archaic as reading the comics on the radio.
RAISE THE PRICES AGAIN, SCREW YOU, FIRE HOWARD,ROSIE,MARTHA, OPRAH,
AND YOU WILL SAVE A BUTT LOAD OF CASH, YOU HAVE ALREADY RUINED SAT RADIO WITH COMMERCIALS ON THE MUSIC CHANNELS,FIRING COUNTRY DAN,BILL AND CINDY MACK,,YOU TURN CHANNEL 171 OFF EVERY WEEK END, AND EVERY EVENING, THE PEOPLE THAT WORK THEIR NEVER ANSWER PHONES ARE RETURN E-MAILS, HELL EVEN HOWARD AND MEL ARE SUEING THE COMPANY, I WILL BE WRITING THE FCC AND TELLING THEM HELL NO ON RATE INCREASE!!!!!!
Mel Karmazin is down 7 million on his last purchase of Sirius stock back when he tried to “pump” it. Cannot believe the FCC did not step in, such a clear illegal pump promoted on CNBC. Glad I was too smart to fall for it.
Howard Stern worth a price hike, lol, isn’t he like 80 now?
The NFL, great, how’s the lockout going?
Horrible reception, sub-par equipment, the worst customer service and they want to raise subscription fees. I love it.
I just shorted the stock. Making money is too easy.
Howard is the one and only reason we carry three subscriptions and I’m willing to bet well over half of your subscribers agree. Toss Oprah, Martha ect.Lets be honest; with out Howard there is very little unique product. So you are jacking up the prices for less Howard since his show will be on less days and for less hours?
I believe a large portion subscribe because of Howard. When he is finished this contract satellite radio is done and so am I! RadioIO and other services will then takeover.
My subs will cancelled. More commercials and less content. Howard’s going to 9 hrs. a week. enough.
Get over it people. It’s going to be $1 or at most $2 a month. You’re going to tell me that’s not worth $1 a month more to avoid listening to the 15 minutes of commercials that local radio gives you. Just go to one less crappy movie at the Arclight and you’re covered for the YEAR.
And here’s a better idea. If you’re that angry about the company right now then cancel your sub. Take that money you saved by not having Sirius and instead invest it in Sirius stock. Wait a year and then sell it. Take your profits and buy a lifetime subscription to Sirius on the companies dime. Best of both worlds plus you won’t have to worry about any future price increases anymore.
They should dump Howard and save the costs. Let him go back to regular radio. I have been a fan. Now even when I do tune in it’s a repeat. Is he even doing live shows anymore? I have Sirius in one car and XM in one, and regular radio in another. If they raise rates will cancel. It is a great service, but the commercials are annoying (hello Radio Disney) when I have to pay for the service, and this would take it one step too far in my view.
If SIRIUS/XM decides to raise rates they had better improve the musical content. Howards show can be downloaded from many other sources around the net. Maybe it’s time for Mel to go?
As I have said before: It takes NO talent to talk T&A all day so why should I bother paying for Howard the Hack? When I had XM, I listened to nothing but music and they had the bestest, deepest playlists. Then Mel bought it and proceeded to run it into the ground. Reduced the music playlists to the same songs over and over, repeated every 6-12 hours. I can hear the same crap on OTA FM stations so why should I pay for lousy service? I dumped them a long time ago and even when they sent me a letter begging me to listen for free for a couple of weeks, I did and not much had changed. I heard one song about every half hour that bubbled under the Top 40 when it was first released and that was it, right back to the same overplayed garbage that caused me to dump XM in the first place. People are correct, there are too many places nowadays where I can get the music I want to listen to, not from some schlub who is intent on destroying sat radio as thoroughly as he destroyed terrestrial radio when he was running THAT company.
As someone who has two radios with XM, I will not pay the increase. I have already go to the Sirrus/XM web site and sent an email via their feedback that they will loose my business if they up the rates. All their subscribers that feel the same way should also email them in advance. Perhaps they will think agian before loosing a large block of their customers.
before the merger, Xm used to give you internet access as part of your subscription.
Just call Sirius and threaten to quit the service and they will throw in 3 Months FREE and lock in your rate for 6 Months till a year. Simple as that, I did this back in November and started paying my locked in rate in Feb. I do this every 6 months and I’m paying less then the general public. Do this and they will even throw in FREE INTERNET, they are hurting really bad that they might even lower your rate to $6.95 a month, that’s what they did for me.