Why I didn't sign on with SiriusXM

I don't care for companies that don't have enough faith in their product to deal honestly and openly with their customers. They feel that they have to somehow trick their potential customers into paying more than a fair price for what they are selling, either using bait-and-switch techniques, or failing to disclose hidden costs, or requiring that you buy more than you need or want. Airlines, insurance companies, carpet stores, and shady car dealers all come to mind. So do cable companies and pretty much any company that sits in a semi-monopolistic position.

Add SiriusXM radio to that list. Since Sirius acquired XM, they essentially have a monopoly on the satellite radio business in the US. And, true to form, they are using this privileged position to stick it to their client base - customer satisfaction be-damned.

I bought a new car this past summer and it came with a six-month free trial subscription to SiriusXM radio. I had never had satellite radio before, and I was pretty excited at first - suddenly I had this huge selection of radio stations to pick from, many commercial-free, with a full spectrum of genres from which to pick, from news to traffic to alternative rock to opera...a practically endless variety of programming all there for me to explore.

I quickly got over my excitement. It turned out that "commercial-free" didn't really mean free of commercials, especially those promoting Sirius itself, and that the robotic DJs on most of the stations, with their ever-present and failed attempts at being either cool or funny, were even more obnoxious than the loudest local DJs - at least the local guys appeared to have souls. Worst of all, though, was the fact that every niche-music station had a playlist that was no more expansive than your typical Top-40 FM station. The only difference being that, instead of hearing the same 40 pop songs every day, I could now hear the same 40 Beatles songs every day. That may sound good on paper, but in reality it gets really old really fast.

All that being said, it was nice to have such a wide selection of stations at your fingertips regardless of where you were driving, clear as a bell, and you could literally drive across the country without changing the station (if you have NO imagination), or worrying about trying to pick up something other than radio evangelism in the middle of West Virginia. So, although the product didn't turn out to be all I had expected, it was still something in which I could see some value.

And then the letter came in the mail for me to continue my subscription as a paying customer; and I was willing to become one. But, it became obvious to me that Sirius realized that their product isn't all it's hyped to be, and the only way they could sell it was to deceive me.

Let's look at the offer: $12.95*/month, with a one-year subscription commitment. Two red flags here...one is the one-year subscription. Why tell me it's $12.95 a month, when in reality I don't have that option here. I can't go month-to-month at $12.95 each, I can only go annually, pre-paid at $150.40. Furthermore, at the end of that year, the whole thing renews automatically and at whatever the going rate is at that time. The only way to prevent this is to physically call them before the expiration date. And the subscription is heavily geared towards getting you to pay using a credit card (they actually charge you $2 to get an invoice that would allow you to pay with a check.) So, the onus is on me to cancel my subscription in a timely manner, or else get charged for another year at any price Sirius chooses (do you think the price will go down, given the virtual monopoly that they enjoy here?)

The second flag is the asterisk next to the price. On the back of the letter is the explanation, which I reproduce in a much larger font than it was actually printed:

"*Additional Fees & Charges: Early cancellation fee may apply. Prices do not reflect applicable taxes, fees and charges. See SiriusXM Customer Agreement for details."

There's several things here that bother me. One, I hate having to look for these disclaimers. What are you trying to hide?. Two, the taxes, additional fees and charges add another few dollars a month. So, it's really over $15/month, and it took some doing to figure out what this number actually was. Why not be up-front about this? The fees actually look to be fairly predictable, so it's not like Sirius doesn't know what these numbers will be before-hand.

Three, and probably most annoying, the Customer Agreement that they refer to isn't included in the letter. I have to go on-line to find it. I should also have an attorney with me when I do. It's 17 pages of fine print, much of which is written in legaleze. What I was able to comprehend on my own, though, revealed that:

1. The agreement could change at any time, and they are not committed to tell me when it does. It's up to me to come back "frequently" (their suggestion) and read through all 17 pages again to make sure I'm cool with the changes. And if I'm not...
2. I can cancel, but I probably will have to pay a cancellation fee (the amount of which is not specified in the agreement.)
3. They can delete any station at any time, "with or without notice to you." The kicker here is how "Your continued use of the Service following any programming changes will constitute your acceptance of such changes." Think about that one for a minute...there's kind of an interesting chicken and egg thing going on there.
4. Here's the best one...if Sirius for any reason ceases broadcasting, all pre-paid subscriptions are considered non-refundable. Even in death they reserve the right to get the last laugh.

I could go on and on...there's 17 pages of one of the more lopsided agreements I've seen in awhile, and I review contracts for a living.

I think the one thing here that gets to me over all others is the automatic renewal requirement. There is no other option in their service agreement. Why is that? For convenience of the customer? I doubt that. Given the one-sided character of the rest of the agreement, I think it is fair to say that it's there to keep you hooked. Regardless of how dissatisfied with the product that you become, regardless of how far up they tweak the price and fees, regardless of how they tinker with the legal details of your contract, even if they cancel all of your favorite stations without telling you, the only way out is to pick up the phone and cancel, and probably pay one or more fees to do so. And, isn't it odd that I can sign up for the service on-line, but the only way to sign off is by calling them?

I think Sirius knows that a lot of customers will likely lose interest in their product in a year or less. One way to stop the migration would be to always strive to exceed the customer's expectations, to offer new and exciting features periodically, to impress me now and then. Or, the other way, would be to structure an agreement that tends to trap the customer in something akin to a loveless marriage.

Sirius has chosen the latter. And with that, I bid my satellite radio Adieu.