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Thursday, September 15, 2011

Sirius Raising Its Rates

While Sirius had announced a planned rate increase, the amount was never mentioned...til now. "Sirius XM to raise price of basic package 12 percent to $14.49; first increase since launch". In hard numbers that represents $1.54 more each month. Certainly not as much as Netflix and this increase shouldn't cause any significant loss of subscribers, a concern facing Netflix today.

Still, in this economy, any price increase is hurtful. And a 12% increase, even when viewed as over 3 years, is still greater than any inflation rate these days. Perhaps, with this increase, Sirius will also announce product enhancements to help sugarcoat the medicine.

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