WASHINGTON -- Hoping to persuade skeptical regulators to approve their proposed merger, the nation's two satellite radio companies announced detailed plans yesterday to give consumers the ability to choose the programs that make up their subscription package.
The companies, Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., said they would offer two "a la carte" pricing plans. One would enable consumers to purchase the best of the premium services offered by each company - like professional football, baseball and basketball broadcasts - for a monthly fee of $14.99. For $6.99 a month, the other would enable listeners to choose 50 of the nonpremium channels, with each additional channel costing 25 cents. To subscribe to the "a la carte" plans, consumers would have to buy new radios.
The companies said they would also let listeners select "family-friendly" and other rate plans and would give subscribers a $1-a-month credit if they asked to have stations with adult content blocked.
The announcement, made the day before the period for receiving comments on the proposal closes at the Federal Communications Commission, was an effort to convince the agency that the merger was in the public interest.
Several of the five commissioners, including the agency's chairman, Kevin J. Martin, have raised concerns about the deal because it would result in the creation of only one satellite radio service.
The proposal is tailored to reflect two major policy campaigns Martin has led. He has urged cable-television and satellite-radio services to give consumers greater choices by offering a la carte price plans. And he has repeatedly denounced violent and vulgar programs, while suggesting that a la carte plans could solve that problem.
Consumer groups that have denounced the deal as anti-competitive applauded the announcement and said it showed that subscription services for television and radio could be sold on an a la carte basis.