K
KC2LDY
Guest
Bloomberg News reported yesterday that Sirius XM Radio Inc. petitioned the FCC on Jan. 20 asking that the agency not extend a freeze on the company's $12.95 basic monthly subscription price. The freeze was negotiated as part of the 2008 merger that formed the company. This doesn't mean a price increase is imminent, of course, but it does indicate how the company is thinking.
In its petition, Sirius XM said it faces a “robustly competitive” market with consumers able to choose terrestrial radio and Internet music services such as Pandora and Rhapsody, while carmakers offer ways to access Web-based entertainment in their cars.
I've said this before and I'll say it again: Sirius XM's business model is all wrong. They should offer a handful of channels for free. There should be one of these channels for, say, each of the major music formats. And they should sell commericals on those channels - but limit them to eight minutes an hour. If people like what they hear, they can subscribe to get the really good stuff.
With all of the XM and Sirius radios out there that came standard with both domestic and foreign cars and trucks over the past five years, I think there would be a surprising amount of listeners. If that doesn't work... Sirius XM can gradually spread commercials to other channels - offering each for free as they so do. The secret is keeping the programming more compelling than what can be found on most terrestrial stations - and keeping it cheap/free and easy for consumers.
And I'll add this: My wife just bought a new Hyundai Tucson, which came with an XM radio and three months of free service. We'd continue to listen to free programming with commericals as long as the programming/music was good and there weren't too many spots. But we are not going to pay one red cent for any of it. Perhaps it's only anecdotal, but I know a lot of people people like us.
In its petition, Sirius XM said it faces a “robustly competitive” market with consumers able to choose terrestrial radio and Internet music services such as Pandora and Rhapsody, while carmakers offer ways to access Web-based entertainment in their cars.
I've said this before and I'll say it again: Sirius XM's business model is all wrong. They should offer a handful of channels for free. There should be one of these channels for, say, each of the major music formats. And they should sell commericals on those channels - but limit them to eight minutes an hour. If people like what they hear, they can subscribe to get the really good stuff.
With all of the XM and Sirius radios out there that came standard with both domestic and foreign cars and trucks over the past five years, I think there would be a surprising amount of listeners. If that doesn't work... Sirius XM can gradually spread commercials to other channels - offering each for free as they so do. The secret is keeping the programming more compelling than what can be found on most terrestrial stations - and keeping it cheap/free and easy for consumers.
And I'll add this: My wife just bought a new Hyundai Tucson, which came with an XM radio and three months of free service. We'd continue to listen to free programming with commericals as long as the programming/music was good and there weren't too many spots. But we are not going to pay one red cent for any of it. Perhaps it's only anecdotal, but I know a lot of people people like us.
