XM's Forced Upgrade

from the oh,-yes,-we-have-to-make-money dept

We were just wondering how satellite radio was ever going to make money and it appears that the folks at XM radio are wondering the same thing. To try to help move the process forward, they've decided to force everyone to upgrade to some premium services. The article describes it as a price increase, but also notes that premium services that people could pay extra for before are now included. That sounds more like forcing people to sign up for premium services they didn't seem to value that much before, rather than just a regular price increase. That's not a knock on the premium services -- some of which sound great. However, it does raise more questions about how XM and Sirius are ever going to make money.
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  1. identicon
    Precision Blogger, 1 Mar 2005 @ 10:03am

    Re: This is why people like to own digitial conten

    When satellite radio hits you with a price increase, you can walk away, but you will lose the hundreds you paid for your receiver(s). If the two companies merge you'll have quite a monopoly in this space.

    We should want satellite rdio to succeed - it's a cool, hi fi unfettered idea - but we must also hope they have some competition to keep their rates lean.

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