SiriusXM has unveiled a new pricing structure for its satellite radio service that allows customers to subscribe to a base package of music channels, then tack on additional programming packages for extra fees.
The cost of SiriusXM satellite radio now starts at $10 per month, which includes access to all commercial-free music stations offered through the platform, executives confirmed on Thursday.
From there, customers can add separate packages that consist of news ($5 extra per month), talk ($5 extra per month) and sports ($8 extra per month) channels, though the additional packages are optional.
The plan also includes access to SiriusXM’s streaming music app, which will offer the same channels available in a customer’s satellite radio subscription, including any add-on channels as purchased.
On a conference call with investors, SiriusXM CEO Jennifer Witz said the updated prices were intended to help the company achieve certain long-term growth and revenue objectives.
“We believe this will both attract listeners who may have been left behind by our premium price packages and allow us to move away from discounted pricing by enabling price-conscious subscribers to tailor the package to their interest and budget instead of relying on short-term promotional packages,” Witz said.
The comment suggest SiriusXM will eventually end a practice of offering a discount when they call to cancel their service, which is intended to ease the company’s churn rate. Some long-time customers have exploited the discount for several years by threatening to cancel their plan simply to get the discount — a loophole that SiriusXM now appears to be closing.
That said, there is still one way to get SiriusXM’s programming on the cheap: By ditching the satellite radio tuner. A subscription to SiriusXM’s streaming only service costs $10 per month and includes all music, talk, news and sports programming — no separate add-ons needed. The service works through the SiriusXM app, which is available for all popular smartphones and tablets, as well as through smart speakers powered by the Google Assistant and Amazon’s Alexa.
Existing SiriusXM customers can switch to the new plans if they prefer, or remain on their old plan for the time being. The company also continues to sell a plan called “SiriusXM All Access” that includes access to all music, news, sports and talk channels on the satellite and streaming platforms for $25 per month.
All music-inclusive plans have separate taxes and the Music Royalty Fee, the latter of which increases the price of satellite packages by nearly 22 percent and the price of the streaming-only platform by nearly 9 percent.
