Comments on: XM-Sirius merger wins Justice Dept. approval

Antitrust officials say they concluded the satellite radio union would not "substantially lessen" competition. Deal still awaits a decision from the FCC.

[shanewalker]

Hmmm.

As an XM subscriber, I'm curious what this will mean for me. Will I
be offered more or fewer channels of preferred content (i.e., will
they eliminate channels I really like as they combine lineups)? Will
my subscription prices go up?

Does the elimination of 'choice' EVER end in a positive for the
consumer?

[gefitz]

The FCC needs to change it's tune...

The FCC is worried that one company will control satellite radio. I think they should be more worried about the product, not the medium through which it is delivered.

As far as the actual content goes, there is PLENTY of variety and competition within the realm of paid audio entertainment. Ask the television industry about their level of competition with companies that don't provide content over the air!

To me, a lack of competition should only be a concern within categories of content...not within categories of delivery modes.

[ddesy]

Not really

The FCC does need to concern itself with allowing one large company to control a large portion of the radio spectrum. It isn't just a kind of technology, but a physical range of frequencies under direct control of one commercial organization. By definition, the FCC needs to pay attention to this.

[edhansen]

More questions than answers, natch

On CNN I heard that the programming was to be combined, i.e.
both Howard Stern and Opie & Anthony will be available. My real
concern is for which hardware will be favored. Of course, we
should expect prices to increase (1 more channels & 2 no
competitive services)...

[mikele11111]

Campaign $$$$

Let's see who gives money to Kohl. You can bet your sweet butt the list of terrestrial radio companies and lobbyists connected to them is huge. Kohl could give a poop about the people. He is absolutely full of it if he thinks his windbag speech will convince anybody he cares about anythng other than getting money to get himself re-elected.

[jlampc]

Lining pockets

How many members of the senate are sweating in Washington with NAAB "contributions lining their pockets? They are worried that they won't be able to do what they promised the NAAB. Lets be honest the NAAB is Clear Channel. It is widely known that the NAAB has been the mouth piece of Clear channel.. oops, sorry.. CBS for years. They fear now that people can have a single choice for Satellite radio they wont have to listen to the same low quality programming that AM/FM radio has homogenized into.

I bought satellite radio to drive across country 3 years ago and I couldn't name a radio station in the city I live in. I like to hear things that I would never find on one of those prepackaged stations on fm. When the general public finally figures out how good Satellite radio is they will begin an exodus that will finally cut the head off of the NAAB. Who knows, maybe in the aftermath we might get some decent stations back on am and fm. Music that we want to hear... not music they want us to listen to. Stuff thats not "JACKED" (LA STATION REFERENCE)

[Inetsec]

The Devil is in the details

*If the programming from both is condensed into one offer -- then FANTASTIC!!!

If getting the program offers that are currently available via separate subscriptions to each company mean that to get the "Premium package" will cost more- - - - I'm not so sure.

We all are seeing the later come to bear everyday. The FCC has mandated no more analog signals, the TV manufacturers have put a premium on most digital TV sets, the cable providers have put a premium on getting HD signals.... etc, etc, etc...

I had a dual subscription to XM AND to Sirius for several years. I just recently dropped Sirius due to the pending merger (and cost). Hopefully they will do the right thing and combine the services at the same price.

[wswhb]

Good News to Me

For some time now I've been podcasting a program that is on Sirius. We recently bought a new vehicle that came with XM. I've enjoyed the free trial, and the options, but don't like how some stuff is solely on Sirius, like soccer. With this merger I'll be able to listen to live English Premier League games as I travel to visit my parents. So, as a listener, I like it.

[zaznet]

That's because competition is gone...

I too like the idea of all of the content existing on XM and Sirius, but the competition is gone. The two companies were competing like TV networks who provide the channels and not like Cable companies who carry those channels.

They took on their business model the wrong way from the start and thus cut each others throats and their own in the process.

The good news is this should usher in more customers for the merged service than both combined could have brought in. Auto makers won't care who they carry when they sell cars built with the feature. Consumers will have one choice to take satellite radio or not.

With this move I doubt we will ever see any real competition in this market space ever again. Costs for the merged company will go down, profits will go up. What impact that has on the consumer is up to the company.

[rnieves1977]

satellite radio... bah

one technology I haven't had a problem dealing without...

[spruceman]

FM radio via satellite

Reckon within 3 years, a combined entity will devote at least half its capacity to beaming a multitude of FM stations to its customers. Great! Top 40 music from 60 different stations in 60 different cities with the same playlists, Top 40 Rap/HipHop from 60 likewise, and another 60 Talk stations. The rest will be the shallow-playlist stuff Sirius now carries. Goodbye to all the good niche stuff I like....after all, FM is programmed the way it is, to suit the majority taste of the populace. No Jazz, No Classical, No Folk, No Easy Listening, No Bluegrass, etc. Lacking competition, they will no longer have to appeal to the pocketbooks of the niche audience. But ***, both XM and Sirius have been slowing drifting in that direction anyway. To be profitable, they have to dumb down---after all nobody ever lost a dime underestimating the intelligence of the American populace.

[Inetsec]

Well maybe.....

You have to keep in mind that most folks who subscribe to XM or Sirius are the niche market.

I subscribed to Sirius solely for the NFL game coverage, and XM for cross country radio access + local traffic reports + weather.....

If the merger reduces channels or ups the price by very much at all they will go down as a niche that died.

[zaznet]

Right way...

The problem with XM and Sirius is they became broadcasters like any TV or radio station and not carriers like local cable companies. Think about it like TV. You get local channels on Cable or Dish no matter who provides the service. XM and Sirius decided to provide their own content which has cost them much more than if they carried existing stations (except for the robot operated music channels).

I would love to see XM carry my local stations so I can hear them while out of town. The local content is really lacking for satellite radio.

[assetman]

how can it monopolize?

Sooo, how do you have a monopoly with a pay subscription service that is personal choice to have or not? I would think as far as format, content and advertising costs Clear Channels control goes way beyond what either XM or Sirius or both can ever hope for.

[suyts]

You are correct,

however, look at all the whiners about MS. They'll call it a monopoly as soon as the EU gets involved.

[MadLyb]

Bravo!

Well said!

[Slep]

Merger sure beats one of them going under

The one angle that escapes most people is that there's no way both of these companies are going to continue to operate when they both are losing millions every year. Eventually one was going to go belly up, so the merger seems to be a way to salvage one stronger, consolidated company.

As an XM subscriber, I'd like to have Sirius' NFL coverage to go with my XM MLB coverage, so I'm in favor of the merger even though I'll probably end up paying a little more with this proposed ala carte billing system.

I've seen both services' losses from the past few years and it concerns me that XM could go bankrupt and then I'll be out the dough. I'm hoping now I won't have to fear losing my service in the middle of my annual contract because the two shall be stronger and hopefully they'll figure out how to make money together.

[Stating]

So (-1 + -1) = 2?

So you add two money losing companies together and miracuously the combo starts making money? Well, we did just have a guy roll a stone away from a crypt 2000 years ago yesterday!

[cherrala]

Tough Times Still Ahead

The Justice Department did the right thing, it's obvious that this does not create a monopoly for all the reasons they stated in their press release. It's not over and the worst of the fight to allow the merger still lies ahead with the FCC. The FCC has congress chirping in it's ear and many of those in congress take campaign contributions from the NAB. Jim Kramer has covered this extensively just Google "Jim Kramer on Sirius XM Merger" and you can find a lot of information on the subject. BTW Mel Karmazin is the CEO of Sirius Satellite Radio not XM as stated in the article.

[cyberDJ-2038765336053745013836]

Just like Blu-ray...

...there will be a merger and thus, a single entity.

And, like the high definition DVD format, it won't matter.

Once the analog TV bands are re-allocated for mobile use, getting music in your car or hand-held device via WIFI will eclipse all of these arguments.

Hang on.
This ride is about to get interesting.

[zaznet]

Blu-Ray?

What merger? HD-DVD folded up camp and gave up their billions of dollars invested. Blu-Ray didn't merge with HD-DVD. Not a good parallel.

[rolandk10]

Time will tell.

I'm a Sirius subscriber. The ONLY reason I went with them was for NFL broadcasts. I really enjoy their service and almost never listen to standard radio any more. As long as I get the same channels I have been for the same price, I'll be fine. I'll be a little upset if they strip out the NFL and try to sell it to me seperatly.

They can do whatever they want behind their doors. If I don't like it, I'll let them know with my wallet.

[Stating]

Just Like NAFTA, WMD, Diebold

The people assuring us that there won't be satellite radio price increases as a result of the merger are of the same breed that told us:

a) NAFTA would increase U.S. jobs. We actually lost 3 million mfg jobs, and have a net trade deficit with Mex/Can of $1.5 trillion

b) There were weapons of WMD in Iraq. There was Duncan Hines frosted yellow cake from Niger?

c) Diebold voting machines were secure

So now we are going to believe the stooge bureaucrats? Who the heck signs their paychecks? Ha, ha, LMAO.

[powersville21]

The other person is correct

The other guy is correct about the merger and the two companies. There is no way both of them would survive over the long haul. They just aren't pulling in enough revenue to justify those massive contracts they are handing out to people like Howard Stern.

Combining two weak companies CAN create a viable single company, although it's not guaranteed. Of course, the easiest way to create a stronger combined company is to cut costs. One of the headquarters will be sold off and many of the executives will be let go. Customer service can be combined. (Yes, this means layoffs.) I don't know whether the two networks are compatible in terms of possibly sharing transmitters or back-end technology but if so, that would be another way to save money.

It's possible that the combined company will be forced into bankruptcy in a couple years anyway, but that might be a good thing. They could renegotiate some of those contracts (like Howard Stern's) to get their costs in line with their revenues.

The merger isn't a magic bullet but it does make it more likely that at least one satellite radio company will survive in the medium term.

[zaznet]

Survival...

They both tried to become exclusive content providers and this has cost them. Their growth didn't meet the needs for the content they now provide and neither can survive in their current state.

It is like two sides in a war running out of bullets and then a third rival arrives on the scene. They really need to join forces so they can recover, but a merger is not the only way to accomplish this.

We'll see what the FCC does with these two. It is still a bit early to go out and buy that new XM radio for my car...

[Sunspot_Cycle]

Slep scores a bullseye

Slep you put your finger right on the heart of the matter when you when you identified the current environment the two satellite companies are operating and the likely fall out if a merger did not take place. Namely XM will go under and the resultant triumph of Sirius would yield a monopoly anyway.

With yesterday's DOJ ruling the FCC will be compelled to deal with the inevitable and formulate a migration plan for XM's customers. It is pretty much clear that XM will go away. XM leases their satellite space in the 900 Mhz Band. Sirius owns their transponders which ride on Hughes satellites and oerate in the 800 Mhz band. Sirius has already hinted that that many music channels will go away. My hunch is a considerable number of Sirius Music Channels will go and almost all of XM's music channels will be axed. Then Sirius will incorporate the unique material offered on XM into it's line up. As an example the Open Wheel Racing carried on XM will move over but the NASCAR material on XM will be cut. Major League Baseball will move to Sirius but only selective bits of the Sports Programing. Whether Mel Karmizan wields a meat ax remains to be seen but we could see Oprah Winfrey fall through the cracks

As to XM's Customers that could be a tricky issue. There is little doubt in my mind that XM Subsrcibers will have to purchase new hardware in the next year or two. My guess is that Sirius will offer to XM subscribers a complementary subscription to Sirius for 1 year or a credit to the purchase of a lifetime subscription. These are the types of issues the FCC has to work out with the principles in the coming months.

[JCPayne]

Did Dubai buy it yet???

???

[JCPayne]

This deal paves the way for the removal of all Media ownership laws

This whole thing paves the way for the removal of all media ownership laws in the USA. Reason being XM-Sirius is now a *national* company broadcasting in all areas and it is competing against local radio stations... Media ownership says something like the local stations can only cater to (I think) something like no more than 30% of US radio markets (or so). The radio stations next will cry foul saying they are hindered and XM-Sirius is broadcasting everywhere and they will lobby to remove those restrictions etc... Just like how Comcast is claiming that they are competing against Satellite and the Baby Bells (+ Ma Bell) and the cable companies believe they should now be entitled the right to control over 30% of the total US market share.... The gov't sooo totally opened up a can of worms on this.