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Wednesday, August 3, 2011

Next up for Sirius XM – raising subscription rates in 2012

Sirius XM Fresh off the news that Sirius XM breached the 21 million subscriber mark, now comes word that it will cost more to listen to the satellite radio operator. Sirius XM Chief Executive Mel Karmazin said in his conference call that "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." The news comes as the government-mandated freeze of subscriber fees has been lifted, one of their conditions of the Sirius/XM merger. But separately, Sirius reached a voluntary settlement with the attorneys of some subscribers, and it won't attempt a rate hike until early 2012. For second quarter, Sirius reaches all-time highs in subscribers, revenue (up 6%) and adjusted EBITDA (up 20%). It also forecast that it will reach $3 billion in revenue this year.

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