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XM, Sirius Say Post-Merger Prices Will Fall

Satellite-radio giants bid to overcome resistance with new subscription plans

By Heather McPherson, Newser User

Posted Jul 23, 2007 3:55 PM CDT

(Newser) – In an attempt to lower resistance to their proposed merger, satellite radio providers Sirius and XM unveiled new pricing plans today that they say will cut subscription prices by 46%. The plans, which start at $6.99 as opposed to the current $12.95 per month standard price, also allow listeners to select channels to add a la carte.

Sirius and XM proposed the new plans in hopes of allaying concerns that their merger will lead to price hikes, Dow Jones reports. Traditional radio companies oppose the merger, which still must gain approval from the FCC and the Justice Department's antitrust division. The companies aim to complete their deal later this year.

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(FILES) A Sirius representative (R) explains Sirius video services. (Getty Images)

Gary Parsons (left) & Mel Karmazin, CEO's of XM and SIRIUS Satellite Radio, respectively. If their proposed merger goes through, the company plans to substantially lower prices and customizable packages.... (Getty Images)

Mike Rowan displays a Delphi XM radio receiver at Sound Advice in Orlando, Florida, in June 2004. Satellite radio continues to grow in popularity. (KRT Photos)

XM Satellite Radio News Studio. Under one of the new payment plans announced, customers can choose 50 channels on either XM or Sirius' systems for $6.99. (KRT Photos)

A Delphi XM radio receiver. The proposed "a la carte" programming plans would become available within a year of the merger, currently in progress. (KRT Photos)

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XM, Sirius Say Post-Merger Prices Will Fall