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.
The 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.