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No. of Recommendations: 1
The XMSR announcement that monthly subscription rates are going up to $12.95 / month is positive for Sirius in two ways:

1) It shows that SatRad in general has the power to increase prices for its service/subscriptions.

2) The "benefit" of a lower monthly subscription rate for XMSR will be gone in 31 days; which translates into more value for SIRI subscribers. Now, for the same monthly rate, SIRI subscribers can get NFL, NHL (well, next season anyway...), College Basketball, Howard Stern, NASCAR (in 2007) INCLUDED in the monthly fee: SIRI does not charge a "premium" for its content above and beyond the subscription. SIRI is rich in content, so by paying the same monthly price, XM has less to offer it's subscribers in terms of value: it is costing each subscriber more to get "less".

It helps create a positive momentum: Content will drive subscriptions and help generate ad revenue on the non-music channels.

If SIRI can address the shortage of receivers available for purchase (including one that you can take with you (ala walkman) for the consumer; and reduce the float by buying back shares of the stock, they will have hit the ball out of the park!

Foolish Financial Freedom for ALL,

Deb
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