Sirius Satellite Radio – To Offer ‘A La Carte’ Programming
Newsday.com report: Sirius Satellite Radio Inc. chief executive Mel Karmazin yesterday offered to provide “a la carte” programming at a reduced cost, a move that may help Sirius win regulatory approval to acquire XM Satellite Radio Holdings Inc.
Customers will have a choice of eight programming packages, including an option of 50 individually chosen channels from one service for $6.99 a month, Karmazin said yesterday in a speech in Washington. XM and Sirius now charge $12.95 a month.
Sirius and XM, the only two U.S. satellite radio companies, plan to submit their a la carte plan to the U.S. Federal Communications Commission today. The FCC and Justice Department are reviewing the $3.23-billion merger. The companies would have to develop radios that accept both signals.
“This is the first time that anyone in subscription entertainment has offered a la carte programming,” Karmazin told the National Press Club. The companies hope to complete the purchase by year-end.
FCC Chairman Kevin Martin has been pushing cable and satellite radio industries to offer channels on an a la carte basis.
Shares of Manhattan-based Sirius rose 9 cents, to $3.21, yesterday in Nasdaq Stock Market trading. Washington-based XM fell 10 cents, to $12.55. Sirius has declined 9.3 percent this year while XM has fallen 13 percent.
Traditional radio broadcasters continue to oppose the deal.
“Policy makers should not be hoodwinked by [yesterday's] announcement, since nothing is stopping either XM or Sirius from individually offering consumers a more affordable choice in limited program packages,” Dennis Wharton, National Association of Broadcasters spokesman, said in a statement. The deal should be “summarily rejected,” he said.
(+54 rating, 14 votes)
cool! I wish somebody would do this for cable/satellite television. it’s so retarded to be paying for 75 channels when I only watch like 10 of them.
cha ching!