XM, Sirus Acquisition Giving Subscribers Options

Pretty soon, if the purchase of XM Satellite Radio (XMSR) by rival Sirius Satellite Radio (SIRI) goes through, XM satellite subscribers will be able to buy channels a la carte or buy content-specific bundles such as a "mostly music" or "news, sports and talk" programs.

XM Chairman Gary Parsons said the $4.7 billion sale should close this year. Sirius CEO Mel Karmazin said the new channel packages show that consumers would benefit from the sale because there would be more choices and lower prices.

XM and Sirius currently charge a flat subscription fee of $12.95 a month for service, and neither lets subscribers pick individual channels. The subscription options range from $6.99 to $16.99 a month, with add-ons as low as 25 cents per channel.

Offerings by the combined company would include:

òA $6.99 a la carte package with 50 stations from those offered by either XM or Sirius, plus additional non-premium stations from that service at 25 cents each. Premium programming, however, such as Howard Stern's show, would cost more.

òA second a la carte plan would let customers pick 100 channels, mostly from one service, plus a selection of "best of" channels from the other, for $14.99. Existing satellite radios could accommodate six of the eight new packages offered, however, consumers who want to purchase one of the two options would have to buy a new receiver.

The company will promote the new package choices at retail outlets, as well as with detailed information on each of their websites.