Wednesday, February 21, 2007

Satellite Merger

FYI: Sirius Satellite Radio is trying to purchase XM, the merger would leave one major satellite radio provider. Any thoughts on what this means for consumers? Anyone more likely to get satellite radio once the merger is complete? Now instead of "sirius has stern, XM doesn't" and one has NFL one doesn't there will be only one satellite provider. I could see them increasing subscription fees since they no longer have to compete with each other.

Stern Update: It appears Stern is planning to Marry his long time girlfriend Beth-O. There's a poll on his Sirius page.

Click the Tittle for an NY Times story.


  1. My original thoughts were that this might run into antitrust issues, since it would leave only one satellite provider.. but I read an article that basically made the argument that the market shouldn't be narrowly defined as just "Satellite Radio" because XM/Sirius actually are competing against free radio, CD players, MP3 players, podcasts, etc.. The reason I don't have satellite radio is because I can listen to these other things instead - especially free radio and CDs with podcasts further down the list.

    Soooo.. the argument would go, they're actually competing in a larger market, and if they want to get new subscribers and continue to grow, they'll have to price themselves competitively against other available entertainment options..

  2. I own Sirius stock, I was hoping XM would buy them out so the stock would go up. It went up a little but not like it would have if they were being aquired. It appears that analysts like them better together, so maybe it is a win win.

  3. I think people would be more interested in it, if there was a way to pirate it. Ironic, huh?

  4. Anonymous3:23 PM

    I like Pat's summary of what XM/Sirius will argue to say they arent a monopoly. That where you have to get creative.

    However, if the government wants to make a case the other way, it will go something like - "Gee, your the only to satellite radio providers and now you want to become 1. Your citing of Pod casts, free radio, etc is all fine and dandy but C'Mon?!?!?"

    I give it 60/40 the deal will go through and I guarentee the companies will have to make some sort of concessions.


  5. Anonymous4:08 PM

    By the way...who is AC?

  6. Looks like their presentation has been revealed over on engadget...

    Check it out

    You guys aren't very far off... I guess we'll see what the FCC has to say.