After a lengthy merger approval process, Sirius-XM finally merged its channelacross both services in November 2008. This was heralded as the signs of a new satellite radio service that would be beneficial to its subscribers. However, rumors of the possibility of rate increases had been surfacing amidst these new changes.
As confirmed by its own respective websites,andsubscribers can expect an official rate increase beginning on March 11, 2009. The reason stated by Sirius-XM is that its online audio stream will be upgrading to a 128 KB stream, which its claiming to be ‘near CD-Quality’. This change will therefore cost subscribers $2.99 additional per month.
that can receive signals from both service’s satellites. Sirius-XM is the only provider of commercial satellite radio in the U.S. and had$30.5 million of debt for 67 million common shares in 2008. Reduced earnings and subscription numbers were blamed on the 27% drop in new vehicle sales in the U.S. last year. Sirius-XM has $995 million in debt that will be due for repayment in 2009; its currently inwith its debtors on repayment terms.