Satellite subscription rates – going up or down?

From the satellite rado news front:

Calling terrestrial radio his competition, Karmazin even said, “I guarantee no price increase, and we will lower the price.”

I suspect this is a subtle way of saying there will be tiered service and pricing levels. Satellite functions according to a cable TV model, and cable TV is all about tiers.

And tiers are so effective because while offering the option of a “lowered price” the really good stuff comes to those who pay more for it.

And there’s absolutely nothing wrong with that.

End result: Higher average rate, more revenue, more value, greater satisfaction.