Once In A Lifetime Offer From Sirius XM?
December 19, 2008 at 5:13 AM (PT)
THEMONEYTIMES is reporting that in a targeted marketing campaign, SIRIUS XM is offering discounted lifetime subscriptions to XM listeners. XM is running a spot pitching a $100 discount on the $400 offering. Many XM subscribers have also received a similar offer through email. SIRIUS has reportedly offered a lifetime subscription product in the past, XM has not.
This offer is so hush-hush -- targeted only to existing subs -- that even XM's pricing plan page is devoid of any information. Interested XM listeners are simply referred to a toll-free number to hash it out directly with the company.
It's easy to see why the company is quietly pushing the offer. It doesn't want to seem desperate. The stakes are significant. If a million subscribers jump at the offer, SIRIUS XM will have more than enough money to clear FEBRUARY's debt refinancing hurdle (the first of three that await the company in 2009).
The downside, of course, is that the deal impacts the cash flow levels from the influx of nonpaying subs after that. However, it's the right offer at the right time. The company definitely needs the money now, rather than later.