SiriusXM to Raise Fee to $14.49/month

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Sirius XM CEO Mel Karmazin announced the satellite radio service will increase prices on January 1, which will bring its most popular plan, Sirius Select to $14.49 per month up 11 percent from the current $12.95.

Mel KarmazinThe company noted that since it launched 10 years ago, it has added popular programs from the NFL, NASCAR, Howard Stern, Martha Stewart and others. “We’re asking subscribers to pay an additional 5 cents a day,” said Karmazin, adding that programming will expand further with the launch of SiriusXM 2.0 in coming months.

The plan will take effect for subscribers after their current contract expires starting January 1.

The CEO also reassured investors that not only is the company sticking to guidance this year of $3 billion in revenues but that it expects to accelerate growth in 2012. It plans to boost revenues by 10 percent to approximately $3.3 billion with free cash flow growing 75 percent to about $700 million.

SiriusXM expects to add about 1.6 million subscribers in 2011.

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  1. This doesn’t surprise me. I thought we would have seen an increase earlier than this. With some of the outragious money they are paying Howard Stern and others Sirius/XM have to raise their prices to cover these costs. Also with the advancement of Pandora and other Web based music choices that are cheaper alternatives that lure customers away from Sirius/XM, this causes less subscribers to cover these rising costs.

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