Sirius XM to increase fees in 2012

Published 5:00 am Wednesday, August 3, 2011

LOS ANGELES — Sirius XM Radio Inc. said it expects to raise its prices next year, now that a federal mandate to freeze subscriber fees has lifted.

“We continue to believe it would be appropriate for us to increase our pricing to be able to continue investing in and delivering the best audio content in the world,” said Sirius XM Chief Executive Mel Karmazin during a conference call with analysts to discuss the New York company’s second-quarter earnings.

Karmazin did not say how much the increases will be, noting that the company has not changed its monthly base fee of $12.95 since the merger of Sirius and XM in 2008. As a condition of approving the merger, regulators at the Federal Communications Commission barred the combined company from raising its prices. The FCC lifted that restriction Thursday.

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