FCC seeks comment on Sirius XM pricing freedom


The three years during which the merged audio satellite company Sirius XM voluntarily agreed to cap its prices is set to expire 7/28/11, but is subject to review and possible renewal. The merged entity is asking that the cap be allowed to expire, and the FCC is putting the matter out for comment.

The FCC is considering the matter under MB Docket 07-57. Comments are due 2/24/11, with reply comments expected to follow promptly on 3/11/11.

When the merger of Sirius and XM was completed in 7/28/08 – a transaction which was allowed despite being banned at the birth of the company’s existence, by the way – the monthly subscription rate was frozen at $12.95.
Some price increases have been allowed under terms of the original agreement, including royalty pass-throughs, increases in special basic packages and addition charges tied to internet access.

Those in favor of extending the cap are asked by the FCC to specify for how long and why, and those suggesting a modified cap are asked to explain the proposed modifications in detail.

RBR-TVBR observation: Is this a big deal for AM and FM radio operators? It would seem that the people with the biggest dog in this fight are Sirius XM subscribers. We suspect the satcaster raises costs on this critical group of people at its own peril. But this is it, your opportunity to weigh in the FCC. And here – comment space is right below this article.