Sirius vs XM....a moot discussion (probably)

[Cowboys Fan 87]

As I have long speculated. Sirius and XM jointly announced they plan to merge, pending Federal approval.

http://today.reuters.com/misc/...S.xml

Also from another Reuters article:

"Parsons and Sirius Chief Executive Mel Karmazin told Reuters in a joint phone interview that they hope to meet "shortly" with the U.S. Federal Communications Commission to seek regulatory approval for their merger.

The executives also said they will continue to support radio devices offered by both companies while working on a new device that will work on both satellite radio services."

[proxim2020]

I always thought XM would be bought out by Sirius. That's actually one of the reasons I chose Sirius over XM. Here's the email I got:

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

[Wings]

How do I never get these emails? Never got the one about the channel changes. Thank goodness for siriusbackstage.com

[arco]

And here was mine...

Dear XM Radio Subscriber:

We want to share with you some exciting news: Yesterday, in Washington DC, we announced XM Radio will be merging with Sirius Satellite Radio to form the premier digital audio service.

The merger will create a satellite radio company that will provide consumers across the country with more and better premium radio programming. The combined company will be able to compete better in what has become a very complex and dynamic entertainment market.

Where today our exclusive contracts mean you had to choose between baseball and football or Oprah and Martha Stewart, the new company will seek to ensure that in the future, you will be able to access both companies' programming. And, once we are fully integrated, those of you who have factory-installed satellite radio will no longer be limited to the programming provided by the exclusive satellite radio service chosen by their car manufacturer.

This merger should be completed in late 2007 or early in 2008. Throughout the year, we will provide updates on how the merger is progressing and information will be available at our website, http://www.xmradio.com.

Between today and the merger date, as well as during the period immediately after the merger date, all of your services will remain the same. The channel lineup, the customer service number, the great music technology, and the XM Radio web site will all remain unchanged and there will be no disruption to service. But, if you have questions, information will be available and maintained on our website, and you can contact our Listener Care team at 800-XMRADIO, with questions and concerns.

XM Radio continues to be committed to providing you the highest quality audio entertainment and customer service available today. After the merger, our new company will be able to offer you the most exciting listening experience in radio.

Sincerely,

Hugh PaneroCEO, XM Satellite Radio

--

Interesting how well these companies seem to get along now!

I can't stand Sirius' inferior music playlists, but I'm *thrilled* I might one day get NFL and NASCAR (formerly on XM... I miss it.).

Sounds like a good deal to me. Hope it works out!

[litlnemo]

Well, I'm not too thrilled with this, because I have Sirius in my Versa and it looks like we're all going to have to get new radios in a while -- I usually keep my cars for a few years so I should still have the V then. My understanding was that replacing the radio in my SL would cause me to lose some of the functionality I currently have with the steering wheel controls and the Bluetooth. So does this mean I am going to end up with either no working satellite radio, or no working bonus features?

Unless I end up with a radio that has all the functionality I have now, I'm going to be upset.

[arco]

I suspect it'll be a long while before you have to worry about that.

[Ever Victorious]

Well, I'm not too thrilled with this, because I have Sirius in my Versa and it looks like we're all going to have to get new radios in a while -- I usually keep my cars for a few years so I should still have the V then. My understanding was that replacing the radio in my SL would cause me to lose some of the functionality I currently have with the steering wheel controls and the Bluetooth. So does this mean I am going to end up with either no working satellite radio, or no working bonus features?

Unless I end up with a radio that has all the functionality I have now, I'm going to be upset.

Where today our exclusive contracts mean you had to choose between baseball and football or Oprah and Martha Stewart, the new company will seek to ensure that in the future, you will be able to access both companies' programming. And, once we are fully integrated, those of you who have factory-installed satellite radio will no longer be limited to the programming provided by the exclusive satellite radio service chosen by their car manufacturer.

This part of the letter leads me to believe that as long as your satellite radio is an OEM radio (like yours), you'll get both without having to change a thing.

I'm certain that eventually all Roady and Sky-Fi module type radios will need to be replaced. the question is whether in-dash aftermarket radios will be able to keep their tuners or if new tuner boxes will be required.

[Wings]

SInce the Satellite Radio tuner is usually a seperate piece from the stereo itself, all that will need to be done is to get a new tuner installed. Saying that, I feel that XM/Sirius should have to cover the cost since they are the ones that inconvenienced everyone. I'm pissed since I just got a Stiletto, the MP3 recordable one that you can listen to anywhere.

[Cowboys Fan 87]

My hope is that they look at delivering some video content now that they will have some "extra" bandwidth. Sirius experimented with this with less than spectacular results....maybe they can try again. Be nice to have sat. video for the back seat.

[Jemdawg]

I know that all Roady and Sky-Fi type tuners will have to be replaced when the merge is completed, but I'm sure, since the OEM radio supports either XM or Sirius, that a replacement will not be necessary. In fact, rumor has it that satellite radio will replace FM/AM completely by 2010 or so, this will be, of course, only in new cars.

[Ever Victorious]

AM/FM stereos as they sit today may be gone by 2010, but AM and FM will still be in car stereos, I guarantee it.

I'm guessing their "replacement" will be HD radio, such as the ones that have been available aftermarket for years and are now standard in Beemers.

CBF - I would not want a video service in my car, or anyone else's for that matter. Driving is bad enough with drivers distracted with cell phones, I do NOT need them driving while watching frigging videos in their car. It's bad enough that it's legal to have a DVD player with a screen in your dash as long as it's tied to a nav system. I've actually seen a few morons watching videos while driving... we do NOT need widespread access to video-in-car technology.

[Jemdawg]

Yeah, of course they will still broadcast AM/FM stations, but the takeover by satellite radio is inevitable. It will only be a matter of time.

[Ever Victorious]

Many people who pay for the subscription satellite services do so partly because they hate the amount of commercials on broadcast radio.

Those who still listen to broadcast radio do so because they either cannot afford satellite service or refuse to pay a subscription for radio.

There are incompatible mentalities between these kinds of listeners... how do you envision this "inevitable" absorption or cross over between the two types, just curious?

[Jemdawg]

I think you misunderstood me, or I may have phrased it poorly: I meant that satellite will be available as an option in addition to standard AM/FM radios in newer cars. This would mean that newer cars will have been "taken over" by satellite in the sense that, eventually, all new cars will be satellite radio ready, just as all cars are AM/FM ready. I hope this is more clear. I simply mean that it will become a standard option, eventually, and that is inevitable.

[Ever Victorious]

Ah yes, I did misunderstand you.

That's already happening more and more, I think that may happen sooner than '10. Many manufacturers are doing significant line revamps for '08, and I imagine most cars that do not already have the option will shortly get it... even things like the Aveo.

[DreamU]

I was ambivalent on this issue till I read the NAB (National Assoc of Broadcasters) is against the merger. If the NAB is not in favor then I am wholeheartedly in favor of it. The NAB has been waging a holy war against satellite radio (and indeed any competitors for that matter). One theory for the NAB's position is that if XM+Sirius don't merge both will go bankrupt and end the competition. The NAB has lobbied hard to prevent satellite radio from local traffic, local weather and even local Amber alerts. Of-course the NAB claims this is all in the 'public interest', go figure.

[proxim2020]

Of-course the NAB claims this is all in the 'public interest', go figure.

I think these guys were fighting so hard to protect their profits and stop broadcasters from around the country from going bankrupt. Satellite is already heading down the road to put them out of business in the music department. The only thing they would have left would be local traffic, new, and weather. I think ultimately they will be horribly unsuccessful in trying to block that from satellite. This would be like VHS tape manufacturers trying to block DVR manufacturers from being able to record TV. It's a useless battle. Things come and go and technology changes. If you can't get with the times, you'll be left behind.

[Wings]

I just hope that if they merge and create the inevitable monopoly they dont screw the consumers. I'd hate to see it go the way of cable tv. Tiered packages where you have to pay extra for more channels. I like getting all the channels at one price. I like having Howard Stern and listen occassionally, but would not pay extra for him. Like wise with sports and news channels. They only thing that may keep that from happening is that even if they are the only company around, their direct competition is free AM/FM radio.
Modified by Wings at 11:04 AM 2/25/2007

[DreamU]

I just hope that if they merge and create the inevitable monopoly they screw the consumers.

huh?

[proxim2020]

Did you mean that you hope they don't screw consumers?

[Wings]

Thanks I fixed it.

[XterraVersa]

I hope they go toward tiered service. I don't want many of the premium channels like Howard Stern, Opie & Anthony, Opera & Martha or online listening. XM was $3 cheaper before they made Opie & Anthony & online listening "free". They could get by with music only for $6/month, sports for $3/month, news & talk for $3/month & charge extra for the other premiums.

If channels don't have enough subscribers to support them, oh well, bye bye, the market has spoken. Cable is that way & it has survived.

[proxim2020]

I just realized I never finished my posting from earlier. I think I would enjoy an option as long as they kept it simple. Split it up 50/50 between music and talk. For those who want one, you pay half. I've been listening to satellite radio for 4 years now and not once have I listened to the talking side (Although I've visited a few times to see what's there). I think I would enjoy paying half for the music only channels. Last year Sirius spent all this money to bring Howard Stern and Martha Stewart, but they were severely disappointed when they didn't pull a ton of listeners like they thought they would. The majority of the listeners still prefer the music over talk. This is only to say that the majority of listeners originally purchased satellite for the music and some will only listen to music side. So give the option to pay less.

[arco]

I suspect the new combined Sirius/XM will need to have a tier system of some kind, but I really doubt it will end up reducing what we pay for the service. I can see them offering more channels and raising the top-tier pricing ($19.95/month, maybe?). At the lower end, we'll probably be paying close to what we are now, but with far fewer channels. Forget about getting "just music" or "just talk" for something like $5 per month... It isn't gonna happen.

Just merging the two companies alone will make them much stronger financially-speaking. Each was spending ridiculous amounts of money on marketing. They won't need to reduce subscription fees once that problem has been resolved.

[arco]

I just hope that if they merge and create the inevitable monopoly they dont screw the consumers.

Monopoly or not, mergers almost always screw the consumers. Can't think of too many mergers that actually benefitted anyone outside of the companies involved.