Three years after the merger of Sirius Satellite Radio and XM Satellite Radio (forming Sirius XM), Sirius XM Radio will be hiking their subscription rates for the first time in the entity’s history.
After the 2008 merger- which began in 2007 and took longer to achieve government approval than any other similar maneuver- the companies were ordered not to raise customer prices for three years. Sirius XM has not raised prices since inception in 2002, but indicated earlier this year that the cost was about to increase.
CEO Mel Karmazin said in a statement:
“SiriusXM’s outstanding financial performance in the midst of considerable economic uncertainty will continue in 2012 as we grow our subscriber base and free cash flow and anticipate that our revenue and adjusted EBITDA growth will accelerate.”
“In the 10 years since SiriusXM launched service, we have expanded our programming line-up to provide an unparalleled listening experience… This is the first price increase on our basic service packages since the addition of the NFL, NASCAR,Howard Stern, Martha Stewart and many college sports to our programming line-up.”
When the announcement was made, the company did not say how much the price hike would be, but Sirius XM indicated today that the cost would rise from $12.95 to $14.49 when the changes go into effect January 1st.