FCC tentatively approves XM / Sirius merger
By Nilay Patel 
posted July 23rd 2008 2:49PM
posted July 23rd 2008 2:49PM
We basically knew the FCC was going to approve the XM / Sirius merger after the DoJ approved it earlier this year, and it looks like the communications agency is just about ready to sign off -- the Wall Street Journal is reporting that a majority of FCC commissioners are close to approving the deal. Word is that XM and Sirius will have to fork over an additional $20M to make it happen and agree to several enforcement terms, but it's all up in the air until this goes official. Let's hope that's soon -- after a historically long delay, it looks like there's finally some light at the end of the tunnel.[Warning: Read link requires subscription]
I have subscriptions for three radios on XM And two on Sirius, plus I subscribe to XM's traffic service in my Infinity. I don't see them going under, as after they merge they will be able to cut costs tremendously when it comes time to renew their content contracts. They were both competing over the same content (NFL, NBA, NCAA, Oprah, Howard Stern, etc.), but after they merge they won't have to pay the ridiculous amounts to get content which is going to make them much more profitable.
As far as advertising goes, XM already plays advertisements on all of its stations, including the music only stations. Sirius plays advertisements on all of its stations as well, but no third party advertisements on music stations (as far as I know).
The ala carte pricing might just be the best thing ever for consumers. I know I could pick probably 20 channels to listen to and be perfectly happy. I really only listen to around 10 different XM stations most of the time.
A lot of posters here obviously have no clue about Howard Stern or satellite radio. They are just spewing nonsense. Real Stern fans love the show more than ever. I actually enjoy the Friday's off because it gives me a chance to listen to something else for a change.
Terrestrial radio is unlistenable after having satellite. The unbelievable long commercial breaks, horrible and watered down talk programs, and playlists that are on a top 20 loop are just unbearable.
Obviously the NAB is terrified by satellite Radio or they would have not gone to unprecedented extremes to fight a merger that should have been approved within the first month.
I completely agree. The detractors have always been a tiny, vocal minority. Meanwhile, the millions of fans continue to laugh and enjoy the show more than ever!
Agreed. I would rather listen to 4 days of Sirius Stern than 5 days of FCC sanitized Stern on broadcast.
Of course Broadcast has more listeners, but that does not mean Satellite will fail any more than Broadcast televisions higher viewer numbers meaning the failure of pay programming like HBO.
Combined they will have close to 20 million subscribers and will save money from not having to advertise against each other or have a bidding war over exclusive content with each other.
I'm in Alaska
We have satellite TV
But not radio
Why would people be so against this merger? If you don't want satellite radio, don't buy it. There are many people who are perfectly happy with terrestrial radio and that's fine for them. I have Sirius and I only listen to terrestrial radio on a rare occasion for sports talk. I would listen more if the commercials weren't so prevalent, but I am willing to pay for the level of entertainment I get from Sirius and to escape all those commercials. I am WILLING to pay. I don't need to pay. It has been made clear that prices will not be going up if this merger ever actually goes through, and it will give people who want satellite MORE choices. I would love to have the option to choose a different package next time I re-up my subscription.
This shakedown by the FCC is the result of nothing more than corruption in our government. These companies are still young and are struggling to find their footing and lobbyists are so afraid that their outdated business model will be further threatened by other means of entertainment (such as Sirius/XM, internet radio, downloading music and podcasts) that they are trying everything they can to cripple one of those forms of competition. Just the fact that they are so threatened proves that there is competition... the one thing that preventing monopolies is supposed to protect.
Any word on if the right wing freaks in the nation got what they wanted, to force XM/Sirius to comply with OTA decencies standards?
As far as I know they didn't, but then again I believe the left wing freaks got what they wanted, which is minority based programming.
I'm in Alaska
We have satellite TV
But not radio
I will believe it when the phat lady starts singing...
It hasn't been "right wing freaks" who've been holding this up. It's been terrestrial radio's NAB with the side show of various black groups and politicians trying to steal as much as they can in return for their support -- "Give us 50% of the spectrum you paid for and built up and we'll approve".
I don't see how this works once Howard's contract is up. He isn't going to work for less but a combined company can't afford another mega-contract, let alone an even bigger one. And letting him go could lose 43% of the Sirius morning audience which would be one out of five subscribers. Though, if a lot of them got lifetime subscriptions, it might not hurt that much, it might even help by getting rid of people who aren't going to pay again.
I've got XM. I enjoy it. But I don't listen to the talk with the exception of the comedy channels. For me, it's about the music and getting to listen to all sorts of stuff I could never get to via my CD purchases or terrestrial radio.
Howards commercial breaks may be for 10 minutes, but they follow no regular pattern. He usually doesn't go to his first commercial break until he puts in one hour straight. Compare that to formatted talk DJ's who tend to do 15 minutes before 7 minute breaks. You pull out all the commercial time and he does around 4 hours straight show time. I don't think any other DJ comes close.
@ TVGenius - its more about trying to make a profit and surviving. XM was so dominant and look what happened? They were to greedy to offer HS a decent deal, and Sirius went all out - now look whos buying who. For the record and if you are capable of reading - XM will pretty much remain the same. Stop crying.
Its been a long time coming. I am glad now that I will not have to choose which radio I want to activate. I will get all my sports and Howard too. The people who throw the word monopoly around are the one ones who don't understand the concept. The Justice department has declared the combined companies to not be a monopoly, but all the "officials" who are opposed to it still refer to it as such. Why? Because its an incendiary term. It just proves their ignorance and shows that they all have a personal agenda.
To the people who tout HD radio.. and the whole free thing... remember you get what you pay for. Hi def -digital commercials. It will be the same crap radio corporations like CBS spew on the air now. If you don't like Satellite radio don't get it. I have cousins who think cable is a rip and they enjoy the 5 analog channels available to them (until Feb that is). So enjoy your HD Commercials, and I will enjoy my unsensored Quality Satellite radio. Congrats XM/Sirius on the Merger approval. "F" the NAB
I have TimeWarner cable service delivery to my house. They have a la carte pricing with packages of channels available to me. Their strategy is to bundle popular channels with less popular ones. If I want the good channel I have to pay for a set of channels - many of which I could do without. I'm guessing I'll see the same thing with my XM subscriptions.
I have what I think are pretty eclectic interests. I like the Fine Tuning, Deep Tracks, BPM and The System channels. I also enjoy about five other channels in equally diverse genres. I'm guessing I'll end up paying for several 'packages' and end up paying more for what I use today.
As for the dismissive comments here about the value of the service, there are clearly people who are ok with competing delivery mechanisms. That's fine for them. Where I live there is simply no way to get a similar level of service from a single approach. Yes, I can load up an iPod with my favorite music. Yes I can get an FM radio at my desk. It is less convient for me to do so.
I pay for three XM receivers and am happy to do so. I'm concerned that with these changes I may not continue to be so happy.