[MW Forums]

The U.S.'s two satellite radio operators, Sirius Satellite Radio and XM Satellite Radio Holdings announced Monday they plan to merge. more

[verucabong]

I'm a subscriber to XM, let's just get that out first. I'm a little worried that XM's programming is going to change as I like it very much. I'm also less than thrilled about Mel being the CEO.
However, I'll also hold judgment until the FCC actually approves it. They put the kibosh on a deal with Dish and DirecTV a few years back so who knows... this may go the way of the do-do very easily.

[davecool]

I could be wrong, but I think Howard Stern's contract was $500 million over 5 years -- that's what Wikipedia says, and what I remember too.

[blockhed]

I have small amounts of stock in both of these companies, and have held it since pretty much the beginning. I still thnk there is nothing wrong with the overall concept of satellite radio, and it should be profitable. But the insane competive spending that the two have engaged in has led to a near-death spiral. Even after 5 years or whatever, the two companies together took in 1.5 billioin and spent 2.5 billion. Terrible mismanagement.
Satellite radio is just one of many new ways that a customer can receive info and music. Seen in the broadest light, the merger is not going to create a monopoly, since customers can go with iPods and podcasts, or digital radio, or regular radio, or tapes and CD's. Probably other options. So it is posible for the goverment to grant these two companies a waver and allow the merger.
If it doesn't happen, then perhaps the Dodo will have company. Which is a shame, this a good product with massive infrastructure and significant customer base which is generally thrilled with the the programming that they receive.
Just my two cents, worth less perhaps.
Peter

[tallscot]

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The U.S.'s two satellite radio operators, Sirius Satellite Radio and XM Satellite Radio Holdings announced Monday they plan to merge. <a href="/news/2007/02/19/satradio/index.php">[more]</a>

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I hope this doesn't get approved. I want the two keeping each other honest.
What's the problem with making a profit in a market where there are only two competitors? Are they spending too much money creating the content?
Instead of spending so much money on exclusive deals with talent, maybe they should both stay separate companies but make a content sharing deal so they can cut the costs of producing the stuff. I don't know. Just a thought. I'm assuming the people with much better education know less than me, aren't I? /forums/ubbthreads/images/graemlins/smile.gif

[flexoffset]

I'm a subscriber to Sirius though I considered tossing it once Howard Stern came on board.
I got the email at 3:09am last night.
Read the email below.
They're planning to offer rear seat video!!!!

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February 19, 2007
To: SIRIUS Subscribers
Today is a very exciting day for SIRIUS customers. As you may have heard, SIRIUS Satellite Radio and XM Satellite Radio are merging to form the nation's premier audio entertainment provider.
This combination of our two offerings will benefit you - our loyal listeners. As a single company, we'll provide superior programming to you every day with the best of both SIRIUS and XM. Currently, XM and SIRIUS broadcast a wide range of commercial-free music channels, exclusive sports coverage, news, talk, and entertainment programming. Howard Stern. Oprah and Friends. The NFL. MLB. NBA. ESPN. CNBC. Fox News. Additionally, the combined company will be able to improve existing services such as real-time traffic information and rear seat video as well as introduce new ones.
After shareholder and regulatory approvals, we anticipate that the combination will be finalized by the end of 2007. Until then, both companies will continue to operate independently. We will continue to provide you with the uninterrupted service - as well as the outstanding customer support - that you have come to expect and enjoy from SIRIUS. We do not anticipate any changes in your service during the merger process, however, please call our customer care team on 1- 888-539-7474 should you have any questions.
We look forward to the many benefits this combination will offer and continuing to make your listening experience an enjoyable one - offering more of the Very Best Radio on Radio.
Stay tuned,
Mel Karmazin, CEO

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C'mon, Government.
Let them merge.
Maybe it will allow satellite radio to remain solvent a little longer.

[lhudd]

I have a Sirius account and went with them because I didn't like XM's programming and didn't care to buy in to system owned by Clear Channel. They already run all the radio in my town and it's awful. So far, i've been happy with the Sirius programming, although my wife is the one that listens to it most. My "commute" is only 10 blocks.

[Martian]

Like most monopoly mergers, this one must get approval or at least not be blocked by agencies like FTC, DoJ, SEC, etc.
But I am baffled that the FCC also has a say. I was under the impression that the FCCs only authority here related to orderly allocation of frequency bands and communications satellite slots.
Isnt the FCCs limited authority here the way by which Howard Stern did an end run around the FCCs partisan hypocrisy and harassment which favored the free speech of mindless dittoheads over the free speech of mindless toilet humor fans?

[surfsideDigital]

I just hope the currently worthless XM radio in my Honda will pick up Howard soon! I for one am stoked!

[Grapho]

With only two players, I agree with you. I don't think this is a good idea at all. Competition is always healthy.

[piccologato]

I think they are both dead. With the advent of 2G and 3G (I can already connect to my laptop using a cell phone as a modem while driving down the road.
I think internet access, wi-fi, whatever its called will be the data stream in the future.
cat

[Macheath_Messer]

I'm sure those who live in very rural areas would tend to disagree with you on that one. The model you described sounds like there would be all sorts of "gates" in the system where companies could nickel and dime a consumer to death. Cost to access 3G system. Cost for 3G plan through provider. Cost for subscription to a site which carries content you want to hear. I know there are free stations out there on the internet to listen to, but I wonder how many of those could remain free if they wish to broadcast over 3G networks.
I subscribe to Sirius, and I like it a lot. I don't want these companies to go under, but I realize one can't operate at a deficit and expect to stay afloat.
It'll be interesting to see how this all plays out.
FWIW

[tallscot]

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I think they are both dead. With the advent of 2G and 3G (I can already connect to my laptop using a cell phone as a modem while driving down the road.
I think internet access, wi-fi, whatever its called will be the data stream in the future.
cat

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Maybe, however I have yet to use a cell phone that is as reliable as I'd want my radio to be, especially when you think about driving long distances.