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Sirius, XM Announce Potential New Packages
01:23 p.m. EDT, July 24, 2007

Pending government approval of the planned merger of Sirius and XM Satellite Radio, subscribers would have the option to pick the channels for which they would pay.

Announcing a set of packages ranging from $6.99 to $16.99 a month, the companies said subscribers would be able to use their existing receivers. Listeners opting for a la carte programming, however, will need to purchase new equipment.

Currently both Sirius and XM offer all of their channels to subscribers for a monthly price of $12.95.

Sirius CEO Mel Karmazin, speaking at the National Press Club, acknowledged the huge role auto manufacturers have played in getting satellite radio service up and running.

Literally millions of vehicles have satellite receivers installed in the dash making "the automobile . . . crucial" to the future of the technology, Karmazin said.

At the same time, however, both Sirius and XM have consistently lost money and face ongoing struggles to keep their subscribers. Together the two companies have approximately 14 million listeners.

The proposed merger was announced in February and is now under review by the Federal Communications Commission and the Department of Justice.

Stiff opposition to the Sirius-XM deal has been waged by the National Association of Broadcasters who claim that the venture would unfairly reduce competition.

If the deal is approved, Karmazin promised programming options that included focused content such as news, talk shows, family-oriented shows, and all music.

He also admitted the new packages were designed to encourage subscribers through incentives to trade in their old radios for newer models.


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