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Sirius XM Raises Rates

1/22/2009 10:48:00 AM Eastern

New York — Sirius XM customer-service representatives are informing subscribers that the company will raise its rates for multiple subscribers starting March 11.

In addition, the company will begin charging a fee for its online music feed for some customers, previously a free perk to all subscribers.

Two representatives confirmed the price increase to $8.99 from $6.99 for customers with multiple accounts, on each additional account. They also said Sirius XM will charge $2.99 to receive its online feed if you subscribe to discount packages such as Mostly Music, Mostly News, and A la Carte. If you subscribe to a basic or premium Sirius or XM package, then there is no fee for online service.

The above price increases may be postponed if users sign up for long term contracts of a year or more.

Sirius XM would not confirm the price increases first published in Reuters today. A spokesman said, “We are not commenting on published reports.”

Sirius XM is not raising prices on its basic plans. In July, the Federal Communications Commission (FCC) stipulated the company could not raise its basic service rates for

three years

, as part of its merger approval.

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