Satellite Radio Merger Approved

[awpitt]

From CNN

The Justice Department has approved a merger between Sirius Satellite Radio and rival XM Satellite Radio.

XM-Sirius merger approved by DOJ - Mar. 24, 2008

 

[MMDad]

 

[Kerad]

 

[getbent]

..."XM reiterated that radios owned by its current subscribers would not need to be replaced in order to continue receiving programming."



What about Sirrus radio? I wonder if those subscribers will have to replace anyting?

 

[The_Twisted_Ear]

Wonderful you say? Now, they no longer have to worry about raising the prices and losing their customers to the other satellite radio provider. Oh yea, great news!

 

[MMDad]

Wonderful you say? Now, they no longer have to worry about raising the prices and losing their customers to the other satellite radio provider. Oh yea, great news!

Do you see any possibility that they will still have competition? Last I checked, they were competing against every radio station in the country, MP3 players, CDs, the Internet, and HD radio.

If they outprice themselves, they will fail. There are just too many alternatives out there.

 

[_MightyMouse_]

Now I hope they sell blocks of music for cheaper being that I only listen to 2 stations.

 

[Pandora]

I wonder if we will all have to buy new boxes?

 

[_MightyMouse_]

I wonder if we will all have to buy new boxes?

According to the article, XM receivers will not need to be switched. With a Sirius receiver, I'm not sure. It should be interesting to see how they combine the channels.

 

[Pandora]

According to the article, XM receivers will not need to be switched. With a Sirius receiver, I'm not sure. It should be interesting to see how they combine the channels.

Yeah, it will.... I'm just confused about the pricing comments they made. We are going to get raped cost wise I bet.

 

[Bruzilla]

I'm more concerned about how the service will be impacted. I remember when XM merged with Music Choice that's affiliated with the cable tv companies. We went from having true commercial-free music to XM's music with commercials and DJs. That's why I quit XM and switched to Sirius, and now it looks like the same crap is headed my way again.

 

[MMDad]

According to the article, XM receivers will not need to be switched. With a Sirius receiver, I'm not sure. It should be interesting to see how they combine the channels.

Since Sirius is buying XM, I doubt their hardware will be changing.

 

[toppick08]

Do you see any possibility that they will still have competition? Last I checked, they were competing against every radio station in the country, MP3 players, CDs, the Internet, and HD radio.

If they outprice themselves, they will fail. There are just too many alternatives out there.

good point Dad.

 

[_MightyMouse_]

If they raise their rates, you better believe I'm canceling.

 

[Bruzilla]

Do you see any possibility that they will still have competition? Last I checked, they were competing against every radio station in the country, MP3 players, CDs, the Internet, and HD radio.

If they outprice themselves, they will fail. There are just too many alternatives out there.

There isn't as much competition as you would think. If you've listened to a lot of satellite radio it's hard to go back to over the air, and HD radio is under the same programming limits as conventional. CDs are fast fading out because they don't survive well in the car environment. I thought that imbedded MP3 players would be the next wave, but bluetooths took the trend in another direction and focused it on connectivity rather than integration, and the problem with MP3 players is they have batteries that go dead quickly. Lastly, sports is a major driver for Sirius sales, the NFL in particular, and that you can't get from any other medium.

 

[The_Twisted_Ear]

Do you see any possibility that they will still have competition? Last I checked, they were competing against every radio station in the country, MP3 players, CDs, the Internet, and HD radio.

If they outprice themselves, they will fail. There are just too many alternatives out there.

I don't agree. You can't listen to FOX News on regular AM/FM. You don't have the "oldies but goodies" on AM/FM. You don't have Comedy, etc. - they got a lock on a lot of programming. I personally don't want to buy a CD just to listen to something one time (stories, etc.). Noppa - no comparison - they will have a monopoly.

 

[MMDad]

There isn't as much competition as you would think. If you've listened to a lot of satellite radio it's hard to go back to over the air, and HD radio is under the same programming limits as conventional. CDs are fast fading out because they don't survive well in the car environment. I thought that imbedded MP3 players would be the next wave, but bluetooths took the trend in another direction and focused it on connectivity rather than integration, and the problem with MP3 players is they have batteries that go dead quickly. Lastly, sports is a major driver for Sirius sales, the NFL in particular, and that you can't get from any other medium.

At current rates, I have to agree. But if rates go up too much, people will switch. There's a level that people are willing to pay, and above that they'll lose business.

Sirius is on the high end of what I'm willing to pay as it is. They can't increase too much without losing me, and I doubt I'm alone in that.

I'm optimistic that this will give us even more programming choices. If so, I'd be willing to pay a little more

 

[MMDad]

I don't agree. You can't listen to FOX News on regular AM/FM. You don't have the "oldies but goodies" on AM/FM. You don't have Comedy, etc. - they got a lock on a lot of programming. I personally don't want to buy a CD just to listen to something one time (stories, etc.). Noppa - no comparison - they will have a monopoly.

You don't have FOX because nobody listens to it. (Just kidding.)

There aren't any oldies stations left because they couldn't compete. If satellite goes up too much, it would make it more economical for radio to compete again.

Yes, I can see the possibility that they will raise their rates too much. But I also believe that the market will regulate itself.

After all, as much as people think they can't live without it, this isn't a real necessity. It's a luxury.

 

[The_Twisted_Ear]

You don't have FOX because nobody listens to it. (Just kidding.)

I'm gonna tell Hannity and O'Reilly - you are gonna be in a lot of trouble for the comment!

There aren't any oldies stations left because they couldn't compete. If satellite goes up too much, it would make it more economical for radio to compete again.

Hope so.

Yes, I can see the possibility that they will raise their rates too much. But I also believe that the market will regulate itself.

Ah, an optimist.

After all, as much as people think they can't live without it, this isn't a real necessity. It's a luxury.

Absolutely. But gosh I really enjoy it!

 

[Kyle]

If they raise their rates, you better believe I'm canceling.

Part of the bargaining with the DOJ was for them to offer an inexpensive option. They've detailed it somewhat in many articles.

"What this means for consumers
Since Sirius and XM are still awaiting approval from the FCC, it is unclear exactly what a merger would mean for consumers. Both companies charge their customers a $12.95 per month subscription fee for their most basic packages.
Some have feared that if Sirius and XM are allowed to merge, the two companies would raise the monthly price.
However, the companies said last year that they would be willing to offer a so-called "a la carte" price plan where consumers could pick certain packages ranging from $6.99 a month to $16.99 a month. The two companies have also maintained that a combined service offering the best of both companies' offerings will cost less than the $25.90 a month that a consumer would currently have to pay to subscribe to both Sirius and XM."
XM-Sirius merger approved by DOJ - Mar. 24, 2008


XM, Sirius plan seen testing U.S. antitrust limits | Deals | Mergers & Acquisitions | Reuters