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Poor Reception for XM-Sirius Shuffle

Some listeners lose track of their favorite channels; stock tanks

By Truman Lewis
ConsumerAffairs.com

November 18, 2008

XM subscribers are getting at least a dozen channels that were previously carried only on Sirius, while Sirius has added several popular XM channels, including Deep Tracks and a couple of country channels.

But what one hand giveth, the other sometimes taketh away. XM has lost Soul Street and a couple of alternative rock channels, getting similar Sirius channels instead. Meanwhile, Sirius' decade-themed channels were replaced by their XM counterparts.

Sirius XM, of course, says everything is just dandy, and issued a news release to that effect.

"With this new programming lineup, subscribers will receive the same number of music and non-music channels on the SIRIUS and XM services as they have in the past," the announcement cheerfully proclaimed.

But with the combined company's stock price at an all-time low -- reaching an abysmal $0.20 today -- and its finances well into the red zone, the channel lineup may be the least of the company's problems. At least one group of disgruntled shareholders has filed suit and more may follow.

SaveSirius is a group of shareholders that is accusing Sirius XM management of unjustly enriching themselves at shareholders' expense. A derivative suit has been filed in the United States District Court by SaveSirius founder, Michael Hartleib and the group has made a series of demands on the company's board of directors.

The company is struggling under $3.4 billion in long-term debt and its already anemic revenues are being further diluted by weak sales of new cars, which is where most new subscribers come from.

And then there's the economy. With subscriptions to XM and Sirius costing $12.95 per month each, many consumers who've become penny-pinchers are having second thoughts about paying $155 per year to listen to the radio.

Unfortunately, getting rid of XM or Sirius isn't nearly as easy as signing up for them in the first place, as many ConsumerAffairs.com readers have learned.

"Continued billing for over one year after cancellation," a Sag Harbor, NY, XM subscriber complained. "XM records showed I called in June 2007 but they claim there were no notes of cancellation."

Sirius subscribers report similar problems.

"Don't you find it amazing that Sirius can cut your free six months off to the day, but in the case that you have suscribed at any time that they will continue your service and then bill you for the extended time of service," asked Stan of Sentinel, OK. "At that point, unless you give them a call, or in my case give them a call and tell them you do not need their service, they turn you over to NCO (a collection agency)."

"I called to cancel my account on 10/27/08. We were told that we could not cancel because they were in the middle of a billing period. We insisted that it be cancelled. We were told it would be. On 10/28/08 I checked our account, the radios were still active, they did not cancel but instead gave us a free month," said Charles of Pataskala, OH.

A combined Sirius/XM receiver is scheduled to be on the market next May but many subscribers are wondering if the company will survive that long.

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