XM and SIRIUS to Offer A La Carte Programming
 Howard Stern, the King of All Media will be the Sultan of Satellite |
Companies' FCC Filing to Detail Array of New Offerings Priced From $6.99 to $16.99
SIRIUS CEO Mel Karmazin to Discuss at National Press Club Address Today
NEW YORK and WASHINGTON - July 23,2007: SIRIUS Satellite Radio and XM Satellite Radio announced today that the merged company will offer American consumers for the first time the opportunity to choose programming on an a la carte basis. This unprecedented offering will provide subscribers with more choices and lower prices and pave the way for a unique form of competition in the entertainment industry -- one based on the individual programming preferences of listeners.
Tomorrow, XM and SIRIUS will file their joint reply comments with the Federal Communications Commission (FCC). The filing will include detailed programming and pricing plans, including two a la carte options. One option will allow subscribers to choose 50 channels for just $6.99 -- a 46 percent decrease from the current standard subscription rate of $12.95. Under this option, customers will also be able to include additional channels for as little as 25 cents each. The second a la carte option will allow subscribers to choose 100 channels and will allow SIRIUS customers to select from some of the best of XM's programming (and XM subscribers to choose from some of the best of SIRIUS' programming).
The combined SIRIUS-XM will also offer several other new programming packages, including two "family-friendly" options, as well. Those choosing one of the "family-friendly" options will be able to block adult-themed programming and, for the first time, receive a price credit. These packages will set a new standard in audio entertainment and subscription media, offering lower prices, package options, and "best of both" offerings. The new plans will give consumers the ability to choose from an array of different packages and price points, ranging from $6.99 - $16.99. A la carte programming will be available beginning within one year following the merger, and the other programming options will be available beginning within six months following the merger.
"Mel and I are very excited about being able to offer a la carte programming. We think this is going to be great for consumers and great for our business. From the day this transaction was announced, we promised that the merger would enable us to deliver more choices and lower prices for consumers. In our filing tomorrow with the FCC, we will offer detailed plans regarding how we will achieve those goals. These plans will further demonstrate why this merger is overwhelmingly good for consumers and in the public interest," said Gary Parsons, Chairman of XM Satellite Radio.
In total, the companies announced a suite of eight post-merger programming options, all of which adhere to the companies' commitment to maintain and enhance service to existing devices and to ensure that no consumer pays more after the merger for the service they enjoy today.
"The a la carte options and other packages unveiled today demonstrate that consumers will be the beneficiaries of this merger. The efficiencies of the merger will allow the combined companies to save hundreds of millions of dollars a year and give us the opportunity to increase the number of programming options available to subscribers," said Mel Karmazin, CEO of SIRIUS Satellite Radio.
A La Carte Programming
The combined company will offer two a la carte packages. Consumers will
select their channels on-line allowing them to easily review the full-range
of each company's programming choices. A la carte programming will only be
available for subscribers using new radios, which will be developed
following approval of the merger.
-- A La Carte -- 50 Channels ($6.99) -- Currently the only standard
package offered by either company is $12.95 a month. Under this new
option, for only $6.99 per month -- a savings of 46 percent --
consumers will be able to choose either 50 SIRIUS channels from
approximately 100 SIRIUS channels or 50 XM channels from approximately
100 XM channels. Additional channels can be added for 25 cents each,
with premium packages priced at additional cost. However, no one
choosing this option will pay more than $12.95 a month.
-- A La Carte -- 100 Channels ($14.99) -- Consumers may also choose an a
la carte offering of 100 channels each. SIRIUS customers will be able
to choose from some of the best of XM's programming and XM customers
will be able to choose from some of the best of SIRIUS' programming.
Today this programming would require two monthly subscriptions,
totaling $25.90. The new 100 channel a la carte option represents a
savings of 42 percent.
Best of Both Packages Will Be Available on Existing Radios
Today, if consumers want the best of both XM and SIRIUS, they need two
satellite radios and two separate monthly subscriptions totaling $25.90.
Following the merger of SIRIUS and XM, consumers will be able to obtain the
best of both SIRIUS and XM, on any of today's satellite radio devices with
one monthly subscription. XM customers would continue to receive their
existing XM service, and be able to obtain certain SIRIUS programming.
SIRIUS customers would continue to receive their existing SIRIUS service,
and be able to obtain certain XM programming. This will be available
through existing SIRIUS and XM radios at a monthly cost of $16.99, a
savings of 34 percent, compared to what it would cost to receive both
services today.
Discounted Family-Friendly Packages
Both companies enable comprehensive channel blocking and parental
controls today. After the merger, consumers who purchase a family friendly
version of XM Everything or SIRIUS Everything can do so for $11.95, a
credit of $1.00 per month.
SIRIUS customers will also be able to choose a family-friendly version of SIRIUS programming that includes select XM programming. And XM customers can select a family-friendly XM programming option that includes select SIRIUS programming. These packages will cost $14.99 per month, a credit of $2.00 per month from the cost of the "best of" packages. Today, a consumer would have to purchase two subscriptions for $25.90 to get this combined content.
Get Mostly Music or Just News and Sports and Save 23 Percent
Following the merger, consumers will also have the option of choosing a
package of SIRIUS Mostly Music programming or XM Mostly Music programming.
Subscribers will also be able to choose a package of SIRIUS News, Sports
and Talk programming or XM News, Sports and Talk programming. Each of
these packages will be $9.99 per month, a savings of 23 percent compared to
today's standard subscription of $12.95.
Like What You Have Today? It Will Still Be Here Tomorrow
From day one, SIRIUS and XM have promised that no subscriber will pay
more after the merger for a service similar to what they enjoy today and
that no existing radio will be made obsolete by the merger. The XM
Everything and SIRIUS Everything packages will offer a service similar to
that offered today for the standard subscription of $12.95. Customers who
choose to keep the subscription package they have today can continue to do
so for $12.95 per month. Customers who purchase XM Everything and SIRIUS
Everything packages will also be able to continue their current $6.99
multi-receiver subscriptions.
Additional detail on the packages is attached to this news release and available at either http://www.siriusmerger.com/ or http://www.xmmerger.com/.
The companies anticipate the merger will close in late 2007.
Summary of XM Post-Merger Channel Line Up Proposal
MONTHLY PRICE: MONTHLY PRICE:
OFFERING # CHANNELS CURRENT POST-MERGER
XM Everything** Approx. 170 $12.95 $12.95
A La Carte I* Pick Your Own 50 $12.95 Starting at $6.99
from all but Premium
(Optional: Add a
Channel @ $.25 each;
Add Super Premium
Packages @ $3.00
or $6.00 each)
A La Carte II* Pick Your Own 100
(including some
best of SIRIUS) $25.90*** $14.99
XM Everything & Approx. 180 $25.90*** $16.99
Select SIRIUS**
Family Friendly & Approx. 170 $25.90*** $14.99
Select SIRIUS
Family Friendly Approx. 160 $12.95 $11.95
Mostly Music Approx. 65 $12.95 $9.99
Commercial Free
Music (58)
More Music (5)
Kids (2)
Religion (1)
Emergency &
Weather (1)
News, Sports Approx. 60 $12.95 $9.99
& Talk
News (12)
Sports (10)
Kids (2)
Talk and
Entertainment (15)
Traffic, Weather
and Alerts (21)
Religion (1)
Emergency &
Weather (1)
*Available only for subscribers using next generation receivers who select channels via the Internet.
**Consumers may block adult-themed content. Consumers who elect to block adult-themed content will be provided a monthly credit.
***Currently requires two subscriptions.
All content is subject to change from time to time due to contractual relationships with third-party providers and for other reasons.
Summary of SIRIUS Post-Merger Channel Line Up Proposal
MONTHLY PRICE: MONTHLY PRICE:
OFFERING # CHANNELS CURRENT POST-MERGER
SIRIUS Everything ** Approx. 130 $12.95 $12.95
A La Carte I* Pick Your Own 50 $12.95 Starting at $6.99
(Optional: Add a
Channel @ $.25 Each;
Add Super Premium
Packages @ $6.00
or $5.00 Each)
A La Carte II* Pick Your Own 100 $25.90*** $14.99
(Including some
best of XM)
Everything SIRIUS Approx. 140 $25.90*** $16.99
& Select XM**
Family Friendly & Approx. 130 $25.90*** $14.99
Select XM
Family Friendly Approx. 120 $12.95 $11.95
Mostly Music Approx. 65 $12.95 $9.99
Commercial Free
Music (59)
Family and Kids (4)
Religion (3)
Emergency (2)
News, Sports Approx. 50 $12.95 $9.99
& Talk
Sports Channels (8)
Talk and
Entertainment (10)
Family and Kids (4)
Religion (3)
News (13)
Traffic and
Weather (11)
Emergency (2)
*Available only for subscribers using next generation receivers who select channels via the Internet.
**Consumers may block adult-themed content. Consumers who elect to block adult-themed content will be provided a monthly credit.
***Currently requires two subscriptions.
All content is subject to change from time to time due to contractual relationships with third-party providers and for other reasons.
