XM, Sirius Say Merged Company Would Allow A La Carte Subscriptions

Satellite radio companies XM and Sirius are waving around five of FCC Chairman Kevin Martin’s favorite words — “a la carte” and “family friendly” — in hopes of gaining approval to merge. The companies’ reply comments to the FCC are due tomorrow; they announced today that the filing will include two a la carte options amidst a host of detailed programming plans and info. Plans call for a la carte to launch “within one year” following the merger and for the other plans to go into effect within six months. Other promises include no obsolescence for currently used equipment and that no one will pay more for similar service than they do today but the a la carte plans require “next generation receivers” and channel selection online. Some details below, the rest in the release:

— One plan would run $6.99 for 50 channels plus additional channels for as little as 25 cents each; the 50 channels could come from either XM or Sirius but not from both. The base price is 46 percent less than the current standard price of $12.95.

— A 100-channel version for $14.99 would allow subs to mix and match some of the programming from each provider. The companies say it would take two monthly subscriptions totaling $25.90 to do this now. (It also would take a radio from each company.)

— The “family friendly” options include a plan with ability to receive a price credit — $1 per month — when blocking adult-themed programming and one with a $2 credit.

— “The best of” XM and Sirius programming will be available on any of the currently offered devices post-merger. At $16.99, it won’t be cheap although it would be less than owning two radios and paying for two plans; arguably, that comparison is offbase given that most sat radio subscribers have one or the other, not both.

— Other packages cater to interests — Mostly Music, Just News and Sports would be $9.99 each a month, a decrease of 23 percent from the standard rate.

The merger plan valued at about $4.7 billion was announced in February and execs from the two companies have been scrambling to get approval in the face of opposition from the NAB and consumer groups. They have to prove that the deal will help, not harm, consumers and that the merger should be based on a different concept of marketplace than that of satellite radio.

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