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SIRIUS Satellite Radio and XM Satellite Radio announced today that the merged company will offer American consumers for the first time the opportunity to choose programming on an a la carte basis. This will provide subscribers with more choices and lower prices.

Tomorrow, XM and SIRIUS will file their joint reply comments with the Federal Communications Commission (FCC). The filing will include detailed programming and pricing plans, including two a la carte options. One option will allow subscribers to choose 50 channels for just $6.99 — a 46 percent
decrease from the current standard subscription rate of $12.95. Under this option, customers will also be able to include additional channels for as little as 25 cents each. The second a la carte option will allow subscribers to choose 100 channels and will allow SIRIUS customers to select from some of the best of XM’s programming (and XM subscribers to choose from some of the best of SIRIUS’ programming). 

In total, the companies announced a suite of eight post-merger programming options, all of which adhere to the companies’ commitment to maintain and enhance service to existing devices and to ensure that no consumer pays more after the merger for the service they enjoy today. 

Today, if consumers want the best of both XM and SIRIUS, they need two satellite radios and two separate monthly subscriptions totaling $25.90. Following the merger of SIRIUS and XM, consumers will be able to obtain the best of both SIRIUS and XM, on any of today’s satellite radio devices with
one monthly subscription. XM customers would continue to receive their existing XM service, and be able to obtain certain SIRIUS programming. SIRIUS customers would continue to receive their existing SIRIUS service, and be able to obtain certain XM programming. This will be available
through existing SIRIUS and XM radios at a monthly cost of $16.99, a savings of 34 percent, compared to what it would cost to receive both services today. 

Additional info available at SIRIUS merger or XM merger

The companies anticipate the merger will close in late 2007.

Source:SIRIUS and XM Radio press release

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