SiriusXM May Soon Drop Its 'Cancellation Discount' Policy

SiriusXM has unveiled a new pricing structure for its satellite radio service that allows customers to subscribe to a base package of music channels, then tack on additional programming packages for extra fees.

According to The Desk, the cost of SiriusXM satellite radio now starts at $10 per month, which includes access to all commercial-free music stations offered through the platform, executives confirmed on Thursday.

From there, customers can add separate packages that consist of news ($5 extra per month), talk ($5 extra per month) and sports ($8 extra per month) channels, though the additional packages are optional.

The plan also includes access to SiriusXM’s streaming music app, which will offer the same channels available in a customer’s satellite radio subscription, including any add-on channels as purchased.

On a conference call with investors, SiriusXM CEO Jennifer Witz said the updated prices were intended to help the company achieve certain long-term growth and revenue objectives.

“We believe this will both attract listeners who may have been left behind by our premium price packages and allow us to move away from discounted pricing by enabling price-conscious subscribers to tailor the package to their interest and budget instead of relying on short-term promotional packages,” Witz said.

The Desk believes the comment suggest SiriusXM will eventually end a practice of offering a discount when they call to cancel their service, which is intended to ease the company’s churn rate. Some long-time customers have exploited the discount for several years by threatening to cancel their plan simply to get the discount — a loophole that SiriusXM now appears to be closing.