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Sirius buys XM in satellite radio merger

#15 User is online   tallscot Icon

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Posted 20 February 2007 - 12:07 PM

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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.


A. They merge and they jack up the monthly subscription fee
B. They don't merge and one of them goes bankrupt and the other offers deals to the former's customers and jacks up the subscription fee
C. They both figure out how to manage their companies in a profitable way
D. They both go bankrupt and digital radio reigns
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#16 User is offline   himbo Icon

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Posted 20 February 2007 - 12:21 PM

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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.


This is my thinking, as well. While the specific service of satellite radio would be run by one company, satellite radio does not perform a function that can't be provided or isn't available via other means. This isn't a competition that's taking place just between these two companies, it's taking place between them and a number of other means of listening to portable content.
Someone else mentioned that having two companies would keep them honest. I don't see why one company would be any less likely to be honest than the two would. The competition in this arena is fierce, and if they were to start behaving in a monopolistic fashion by raising their rates, they'd get left behind. The market is what would keep them honest.
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#17 User is offline   Ronald_Schoedel Icon

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Posted 20 February 2007 - 12:29 PM

It was inevitable. Just as when digitial satellite television started out with competitive services such as USSB, Primestar, Dish, DirecTV; and we saw consolidation just a few years later.
The Clinton FCC enabled commercial radio to become the vast wasteland it has been since the late 1990's, with single companies owning over 1,000 radio stations and sometimes being the sole operator in a city. Prior to the Clinton FCC dereg, a broadcaster could own only 1 AM and 2 FM or vice versa in a market, and the biggest company owned a little over 200 radio stations.
This new deal with satellite radio is merely continuing in the tradition of consolidation and bland-ization of radio, the once great medium of the masses. I would suspect that once the two providers have merged fees will go up and quality will go down. There is little incentive for any other course to be taken by the provider.
Ronald Schoedel
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#18 User is offline   Jason Snell Icon

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Posted 20 February 2007 - 12:51 PM

I'm going to agree with those who are saying this is a good thing. The programming choices from the two sides were so different that it was actually preventing lots of people from buying in. If I want to listen to NFL and Major League Baseball on satellite radio, I'd need to buy BOTH XM and Sirius! That's insane. Imagine if DirecTV carried Fox News, FX, and Fox Sports Net, but Dish Network carried CNN, Sci Fi, USA Network, and ESPN. It would be a disaster.
(Of course, DirecTV wants to corner the market on premium sports packages for that very reason. But that's a digression...)

#19 User is offline   hgwells Icon

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Posted 20 February 2007 - 12:52 PM

I don't have satellite radio nor do I own stock. But I am a supporter of it and would have it if I would justify spending more recurring fees. I am concerned that neither is profitable and hope that turns around. I am also concerned that the merger leaves one company without competition. But if it keeps satellite radio from dying completely, it is in everyone's best interest. I'm just not sure that it will be a full fix. I hope something gets it stable and profitable though. I was inclining to XM if I had signed up since I was not willing to support Stern or the absurd money paid for him. I think XM also had Bob Edwards whom I haven't heard for a long while now. Anyway, I have neither now. I hope this works out for everyone.
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#20 User is online   KBCraig Icon

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Posted 20 February 2007 - 12:54 PM

Why is the headline "Sirius buys XM"? Why not "XM buys Sirius", although that wouldn't be accurate, either.
This was a merger, an equal value stock swap.
I don't know if it's a good thing, but I suspect it is. Much (most, probably) of the programming is duplicated. Eliminating the duplication frees bandwidth and operating capital.
I also don't worry about so-called "monopolies". If one of the two went out of business, would the other then be a monopoly? Only the government can keep competitors out of the field -- that is monopoly power.
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#21 User is offline   fribhey Icon

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Posted 20 February 2007 - 01:08 PM

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Why is the headline "Sirius buys XM"? Why not "XM buys Sirius", although that wouldn't be accurate, either.
This was a merger, an equal value stock swap.
I don't know if it's a good thing, but I suspect it is. Much (most, probably) of the programming is duplicated. Eliminating the duplication frees bandwidth and operating capital.
I also don't worry about so-called "monopolies". If one of the two went out of business, would the other then be a monopoly? Only the government can keep competitors out of the field -- that is monopoly power.


i'm pretty sure just because it's called a "merger" doesn't mean that one company isn't buying the other. when kmart and sears "merged" it was technically kmart buying sears.
it's also not a monopoly (at least not an illegal one) because there is still regular free radio.... and if it was an illegal monopoly then so is cablevision, comcast, time warner and every other cable company because last i checked i didn't have a choice in my cable provider.
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#22 User is offline   n4hhe Icon

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Posted 20 February 2007 - 01:31 PM

I too vote with my feet, ears, and money, against Clear Channel. CC ruined a once great and unique local station. Traveling the country every CC station sounds the same. Idiot DJs and long commercial breaks.
The afternoon DJ here thinks every time he says "beer" or "drink" he sounds 10% smarter. "It's beer-thirty." "Thank you for drinking."
I have not subscribed to XM because of CC's involvement.
I have not subscribed to Sirius because their internet version requires WMA and is not Mac-compatible.
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#23 User is offline   hgwells Icon

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Posted 20 February 2007 - 02:04 PM

In general, too few entities own too many TV & radio stations. Should have never been allowed to happen. Free Enterprise is only good if it is not stifled, as it is increasingly. The watchdogs are not being watched anymore.
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#24 User is offline   himbo Icon

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Posted 20 February 2007 - 02:06 PM

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I would suspect that once the two providers have merged fees will go up and quality will go down. There is little incentive for any other course to be taken by the provider.


Except for the one that blockhed and I mentioned, which is that they are not operating in a closed market. They are competing with a number of other portable music/content formats, and if they degrade their quality or raise their fees, this market will devour them without pity.
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#25 User is offline   Ronald_Schoedel Icon

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Posted 20 February 2007 - 02:26 PM

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I too vote with my feet, ears, and money, against Clear Channel. CC ruined a once great and unique local station. Traveling the country every CC station sounds the same. Idiot DJs and long commercial breaks.
The afternoon DJ here thinks every time he says "beer" or "drink" he sounds 10% smarter. "It's beer-thirty." "Thank you for drinking."
I have not subscribed to XM because of CC's involvement.
I have not subscribed to Sirius because their internet version requires WMA and is not Mac-compatible.



Clear Channel and several other major behemoths in broadcasting were given the go ahead to become such by the Clinton FCC in the deregulation of the early and mid-90s, which is why radio is as bad as it is today. The only good radio is small-town local radio anymore, and even many of THOSE stations have been bought out by Clear Channel and others who have homogenized and dumbed-down formerly great radio stations. I worked in broadcasting around the time when all this was happening, and have something of an inside view of the downfall of American broadcasting.
Satellite radio being consolidated will lead to the same lousy quality AM & FM now gives listeners.
Thank goodness for Audio Hijack Pro and streaming radio on the web, from the likes of the many stations of the BBC and many others around the world. I listen to "the radio" all day, but seldom a local station. The combination of streaming audio captured by Audio Hijack Pro, which feeds into a smart playlist in iTunes, and then onto my iPod, all automagically deliver me hours of interesting radio each day, for on the bus, at work, and while working out. Buh-bye boring DJs and long commercial breaks, and playlists 12 songs deep.
Ronald Schoedel
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#26 User is offline   j_drake Icon

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Posted 20 February 2007 - 02:35 PM

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(Of course, DirecTV wants to corner the market on premium sports packages for that very reason. But that's a digression...)


Actually that makes your point exactly. Right now the Extra Innings Baseball package is available on both cable and satellite. If MLB agrees to extend exclusive rights to DTv it will be a big loss to the millions of cable customers, me for one, that get to watch more baseball than is humanly possible. Hopefully MLB will be worried enough about opening up congressional investigations into the deal, which may very well open the door to serious dealings on the steroid and other ugly stuff going on in baseball. And I can guarantee I will not get Dish to watch baseball, same as I have not sprung for the NFL ticket, overpriced for what you get and they still have to comply with any blackouts! /forums/ubbthreads/images/graemlins/tongue.gif
And while the merger of the two sat-radios groups is still up in the air
(Despite the headline, no one has bought anything, they've just agreed to do the deal,
Sirius, XM see deal closing in 2007
By Paul Thomasch and Kenneth Li
Reuters
Tuesday, February 20, 2007; 2:05 PM
NEW YORK (Reuters) - Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. pledged on Tuesday to work with regulators to close their proposed $4.9 billion merger by year's end, seeking to calm concerns that U.S. antitrust authorities would block the deal. {Full story here }
and until it is approved by every Tom, Dick and Harry committee it ain't done), the conditions are better now than before for approval, as others have said what with the on-rush of 3G capable phones etc. Again as others have said, I'll fall off my chair if they do not raise their rates and we see the quality go down, no competition = no need for quality to the customer!
'NUFF SAID
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#27 User is online   tallscot Icon

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Posted 20 February 2007 - 03:30 PM

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I'm going to agree with those who are saying this is a good thing. The programming choices from the two sides were so different that it was actually preventing lots of people from buying in. If I want to listen to NFL and Major League Baseball on satellite radio, I'd need to buy BOTH XM and Sirius! That's insane. Imagine if DirecTV carried Fox News, FX, and Fox Sports Net, but Dish Network carried CNN, Sci Fi, USA Network, and ESPN. It would be a disaster.
(Of course, DirecTV wants to corner the market on premium sports packages for that very reason. But that's a digression...)


I agree, it's much better to have only one company so that we can have standardization and all the content on one platform. So Microsoft should buy Apple, huh? /forums/ubbthreads/images/graemlins/wink.gif
Yeah, I didn't think so.
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#28 User is online   tallscot Icon

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Posted 20 February 2007 - 03:36 PM

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Quote:

I would suspect that once the two providers have merged fees will go up and quality will go down. There is little incentive for any other course to be taken by the provider.


Except for the one that blockhed and I mentioned, which is that they are not operating in a closed market. They are competing with a number of other portable music/content formats, and if they degrade their quality or raise their fees, this market will devour them without pity.


OK, so if the merger happens and Sirius/XM raises their fees, who are you going to switch to?
What are the other commercial-free subscription-based radio services not censored by the FCC out there that you are talking about?
An iPod is not satellite radio. It's a player.
A CD player is not satellite radio. It's a player.
iTunes Music Store is not satellite radio. It's a store.
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