Sirius XM Overcharges Subscribers for Satellite Radio
Reuters said Sirius XM overcharges subscribers for Satellite Radio. Sirius XM is charging extra fees for the subscribers of Satellite Radio as they have a monopoly. Sirius XM is unethically utilizing the monopoly power of raising prices for subscribers. Valued at $180 million, the accord calls for Sirius XM to hold steady or lower the base subscription price for an estimated 14 million of its subscribers in 2011, a lawyer for the subscribers said.
Sirius XM had planned to raise $2 in the end of July. Sirius XM is home to programming including "shock jock" Howard Stern and Major League Baseball. Sirius XM, New York took over SM Satellite Holdings Inc., on July 2008. The extra fees caused 40 percent increase in the subscription charges for Sirius XM. The amount will rise from $19.94 to $27.88.