XM / Sirius merger decision coming today?
By Evan Blass 
posted December 3rd 2007 10:15AM
posted December 3rd 2007 10:15AM
posted December 3rd 2007 10:15AM
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Using two promotions that XM is/was running, my XM costs $5.30/mo for a year.
But why do some stations have commercials?
I am currently a Sirius subscriber and I fully support the merger. Yes, it would create a monopoly, but there is a certain price sensitivity that they must watch if they plan to continue and grow. There are many people that I know that will never pay for radio and for them there will always be terrestrial radio.
Also, hopefully not competing with each other for content in the long run will drive their costs down and help offset any potential increases in subscription costs.
As for JAmerican's Coke and Pepsi comparison? Sure, go ahead and let them merge. There are still many other soft drink choices, as well as infinite possibilities of beverage choices. I think he needs to understand the definition of a monopoly before he speaks out against one.
I am a Sirius subscriber and am 100% in favor of the merger. If I could have my wish I would have 1 sat provider with the following:
MLB
NBA
NFL
NCAA
XM's Music Stations (except for the Punk station on Sirius, need that too)
XM's Comedy Stations
Sirius's Blue Collar Radio
Sirius's Talk Stations
Monopolies outside of government regulation do not exist. Throughout history if you look at prices before and after so called "monopolies" were broken up by the government you find that prices tend to increase 12% after the breakup. The with a merger sat radio companies will have significantly reduced costs as well as an increased focus on their real competition, FM. Since FM's fees are zero + commercials the price of Sat radio will tend to decrease.
I'm all for the merge. I've had Sirius since almost the beginning and XM now built in. Whatever the new price it should be less than paying for both now. My taste is more into Sirius news and CBC3 and Left of Center. Looking forward to more TV channels on Sirius Backseat TV. Speed channel would be nice, BBC World News, Weather.
"The whole point of not having monopolies is that competition can flourish."
The problem is, they have not been flourishing, but rather floundering. They did increase subscribers, but by doing that they suffered increased costs to hire talent in order to get those subscribers. This isn't so much a merger to make huge companies even bigger, like your Coke and Pepsi analogy, but rather a merger to keep Satellite radio alive.
In any event, if there is no merger, then one of these companies will eventually fold and you will have a "monopoly" by default. One that will have to increase rates to make up for losses.
I have to take a break from jabbing this pen into my left eye to reply to some of these posts. How can you not understand that these satellite radio companies don't just compete with each other, but compete with anything fighting for your attention while driving in your car? You have FM, AM, iPods, CDs...If Sirius were trying to take over ALL of that, then we'd have a monopoly on our hands. But you have OPTIONS. I love everyone acting like what Sirius wants to do is jack the price for thier service as soon as this goes through, like all of their subscribers are held captive to pay more. Uh, won't we just cancel our service? What company sets out to intentionaly piss off their customers?
Think the NAB would protest Coke and Pepsi merging? Nope. Why? Because they don't compete with those companies. So why do you think they're getting involved with this merger? Go on, think about it. Take your time. Ah ha! Because they are COMPETING with both companies. Doesn't a monopoly refer to a situation in which no competition exists? The NAB knows that both companies together would be bad for them and good for Sirius, and by extension, the subscribers. If the NAB "knew", like some of you in here seem to, that the merger would spell the doom of Sirius and their competition, wouldn't it make sense for them to step aside and allow the merger to go through? What do you know that the NAB doesn't?
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No, let's put it like this. You can buy VCR tapes, and you can buy DVDs. For sake of argument, let's say that only ONE company makes DVD players and disks, and everything DVD related has to go thru them. Does the DVD company have a monopoly over movies? No, but they do have a monopoly over the format. A merger will not create a monopoly in the realm of sound transmission, but in the segment of satellite broadcast radio. This is the same reasoning behind calling a cable company that has total control over one area a 'monopoly'. Yes, there is free tv, but there is a monopoly in the market segment of cable television. The two satellite TV companies could not merge as it would create a monopoly. I don't see how radio should be any different.
Okay, imagine this: Verizon, having opened up their network, allows someone to build a device which uses CDMA to deliver audio streams to your car.
Voila, instant competition for Sirius/XM. In other words, new technology will keep the combined company from exercising anything even close to monopoly power.
Ok...first off. For all the fools that think just because xm and sirius merging will mean an increase in prices either soon after or down the road need to really think about how much it would benefit the new company. Sure they would make more money. But if their subscribers don't like it and decide to cancel
then that throws a whole new problem for the new company. Up rates and risk losing customers= less profit which in turn = the exact opposite effect that the rate increase intended. So why don't all of you people who think rates will go up think about that for a while and then think some more. Now don't get me wrong the idea of rates eventually going higher will surely happen in the long run but it won't happen because XM/Sirius will try and screw the customer, it will happen due to things like inflation or changes in demand. All things eventually rise in price. That's just a fact of life. ie cable,phone,taxes,gas. The wonderful thing about sat radio is that there isn't a contract so if you don't want to pay a higher price u don't and cancel. And by the way even if the two don't merge whose to say that the rates won't eventually go up anyway. Did you think about that one??? People should be more optimistic.
So no new word on this merger, what happened how come no news about this??????
Wow. What a dumb thing to say JAmerican. You really are dumb. Dumb.
The fact that both of these services are VOLUNTARY SUBSCRIPTION BASED meaning NOT REQUIRED SERVICES negates everything you say, moron. Unlike a utility in which you need to survive.
If we do not want to pay for overpriced service, which is essentially what you are predicting if said merger occurs, then we as consumers (meaning to CONSUME) will choose not to. OR we may choose to. Or we may choose to turn on our s**t terrestrial radios and spend 20 minutes listening to what the N.A.B is so worried about losing. Advertising. Crappy car commercials screaming the wonderful deals we can get if we push, drive, or tow our junkers in to their lot and get a trade. Or better yet, listening to Justin Timberlake and Britney 48 times in one day. Hey, how about this. Let's listen to more yuck yuck chuckle-headed dj's speaking like fools.Exciting radio. Stimulating.
By the way, do yo not realize that the more the N.A.B protests this merger and the longer they pretend to act like they are interested in the consumer, the more these companies will spend, raising prices, and burying themselves in the dirt. At which point, the N.A.B will have won, since they no longer will have a competitor to smoke their asses. So, tell me. Who is the monopoly here, jerky?
Has anyone heard any updates on this merger?