Sirius XM Radio Inc. says it expects to raise its prices next year now that a federal mandate to freeze subscriber fees has been lifted.
"We continue to believe it would be appropriate for us to increase our pricing to be able to continue investing in and delivering the best audio content in the world," said Sirius XM Chief Executive Mel Karmazin during a conference call with analysts Tuesday to discuss the New York company's second-quarter earnings.
Karmazin did not say how much the increases would be, noting that the satellite radio company has not changed its monthly base fee of $12.95 since the merger of Sirius and XM in 2008. As a condition of approving the merger, regulators at the Federal Communications Commission barred the combined company from raising its prices. The FCC lifted that restriction Thursday.
David Frear, Sirius XM's chief financial officer, acknowledged that higher prices could decrease the service's number of paying subscribers, which surpassed 21 million in the quarter ended June 30.