Sirius Doing a Little Family Plan Promoting
June 15, 2006
The Family Plan is a plan utilized by Sirius and XM where a subscriber can add additional receivers to their account for $6.99 per month. While the price is lower, the consumers are loyal, and less expensive to market to.
Satellite Standard Group has written articles regarding the subject.
Sirius and XM have had differing strategies regarding the family plan. In the fourth quarter of 2005 and the first quarter of 2006 XM used this segment as a subscriber growth vehicle. This boosted their family plan to roughly 20% of the subscriber base for XM. By contrast, Sirius has traditionally not marketed very heavy in this sector, and had a family plan base of 12%.
Sirius now seems at least slightly geared on growing this "Family Plan" sector.
Today on the Howard Stern show, and interesting ad ran that promoted the family plan. The ad featured the "It's Like We Know" theme, and centered around a guy trying to get his Sirius equipped car back from his wife. The ad states that for an additional $6.99 per month, with receivers starting at about $49, that both the husband and wife can have their Sirius.
The Sirius campaign is not as "agressive" as the campaigns that XM has run (using free hardware with a 3 or 6 month commitment), but is more agressive that ythe "organic" strategy employed by Sirius in the past.
It will be interesting to see what percentage of the subscriber base the "Family Plan" makes up for both sirius and XM at the end of Q2.
6/15/2006 11:10:00 AM
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