Sirius XM (SIRI) was given a serendipitous settlement earlier this year in the Blessing v. Sirius XM case. Not only did Sirius XM essentially get away with the implementation of a royalty rate increase and a higher cost multi-account user discount as well as charging for the previously free internet stream and mobile app access (all of which successfully circumvented the FCC "mandated" yet "voluntary" 3 year price freeze negotiated in the horrendous record-length merger debacle and approval process that all but ensured the likelihood of bankruptcy in early 2009), but furthermore, Sirius XM was able to escape the enormous triple damages related to a potential anti-trust ruling.
Sirius XM emerged from the relatively small cost of the plaintiff's attorneys fees, discounts and another dictated price increase delay. Sirius XM is restricted from raising prices until January 1, 2012. However, the current ruling is under review as the judge agrees to hear objections.
Sirius XM's stock price skyrocketed after the 1st qtr conference call when it was learned that Sirius XM was considering a price increase this year. On May 3, 2011 Sirius XM's CEO Mel Karmizan stated:
You are also aware we have been driving our top line growth while being restricted by our commitment to the FCC that we would not raise our base price in the first 3 years following our merger. That commitment will expire in the third quarter of this year. SIRIUS has never increased our base price of $12.95 since we started...
Read More On Seeking Alpha: http://seekingalpha.com/article/287579-confident-that-sirius-xm-can-justify-price-increase