The vast majority of TheStreet's readers believe Sirius' recent price hike is more than fair.
NEW YORK (TheStreet) - Sirius XM Radio(:SIRI) users have voted emphatically that the company's recent price hike is more than fair, and will not cause them to cancel their subscription.
Sirius recently raised its monthly subscription price to $14.49 per month, up from $12.95 per month. This was the first price hike in the company's history. When Sirius and XM Satellite Radio merged, the two companies agreed not to raise prices for three years.
Of the nearly 1,600 readers who voted in a poll run by TheStreet almost 68% said that $14.49 is "more than reasonable for all the programming the company provides." Almost 22% of readers said they are fine with paying $14.49, but warned that another price hike would cause them to rethink their subscriptions.
Only 10.2%, or just 162 of those who voted, said that the monthly price hike is too much to pay considering there are other free alternatives available.
Sirius raised prices for the first time in its history in January. The $8 billion company has become free cash flow positive, and analysts expect that the price hike will continue to help free cash flow, potentially allowing the company to buy back stock or pay a dividend.
Sirius shares have performed exceptionally well to start the year, gaining 17.9%, outpacing the 13.3% gain in the Nasdaq.
Interested in more on Sirius XM? See TheStreet Ratings' report card for this stock.
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--Written by Chris Ciaccia in New York
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