SiriusXM Not Giving Up On Tiered-Pricing

Jim Meyer

At Tuesday's Bank of America Merrill Lynch 2014 Media, Communications and Entertainment Conference, Sirius XM Holdings Jim Meyer once again discussed market segmentation and introduced a new tiered pricing concept.

According to Seeking Alpha, this is not the first time that Meyer has discussed addressing market segments with lower priced and/or targeted offers. On recent earnings conference calls Meyer has noted that the company's subscriber base was underrepresented with both women and Hispanic subscribers.

It has also been a difficult market to penetrate. A year ago the company tried tiered pricing to go after the Hispanic market, centered around Piolin radio, with a $5.99 package. The offer was a suite of Spanish language stations including news, talk, sports and music programming, all geared towards the sector. That $5.99 Hispanic package offering has not been successful, and it's not known whether it was pricing or lack of compelling content that was the reason for failure.

Piolin is gone, but Meyer is not about to give up on addressing the Hispanic market. Admitting the difficulty of trying to address a fragmented Hispanic market, Meyer stated: "we're trying lots of things, we're learning lots of things. I will tell you, it's not easy. You know, what's successful in Miami doesn't necessarily work in San Antonio and doesn't necessarily work in L.A. And we're going to keep working at it and keep trying. When we find stuff that doesn't work, we move away from it."

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