What Are your thoughts on the Siruis/XM merger?

Question

I don't ask many questions but I have one for you all! As we enter November, you will see the Sirius and XM satellite radio merger in the news more and more. My question is... What do you think about the merger? I personally think that if they don't merge Clear channel communications will buy XM. However, I think programming will go down once they merge. And jobs will be cut. But I always remember that we will still get the best in music and entertainment they can't mess it up that bad. What do you think?

Answer 1

With everything I've been reading the past week, I think it's in the bag.  As another poster stated, it is the only way satellite radio will survive.  Both companies are still in the red, so this is their only hope at cutting costs (trimming the number of programmers, terrestrial repeater locations, et al).  As far as programming, not much will change in the near future.  People who subscribe to XM now will continue to get their same channels (just maybe programmed by a Sirius programmer), and vice versa.

Yes, there probably will be some decline in the programming, but the alternative is for satellite radio to fold altogether.  I don't think they can really raise subscription costs or add commercials on the music channels without losing subscribers like crazy.  There are alternatives out there for music. it is just the talk/entertainment that listeners can't get elsewhere, and I don't know that satellite radio can survive on this alone.

Maybe for the Howard Stern fans, but he has a finite contract and he will probably retire when that is up (forget how long his contract is for).  Other than that, commercial-free music is satellite radio's biggest draw and adding commercials would be its death.

Answer 2

I have XM.  When are they going to merge and will this bump up the cost of the subscription?

Answer 3

The FCC will never let this happen.  It will be too big of a monopoly of the market.  It will be one company owning, broadcasting, selling the medium to listen to it.  It's the same as when the government made movie companies sell parts of their business to help competitioin.

Answer 4

I think the merger is a good thing.  In fact it's the only way the two companies will be able to make it. Mel Karmazin has already stated that if the merger goes through they are going to offer package deals.  50 music channels for 6 bucks a month.  I for one don't listen to every channel on Sirius.  The merger should go through.  The only people against the merger are the NAB (National Association of Broadcasters). They are claiming it would be a monopoly.  It would not.  A monopoly would mean the two companies would no longer have competition.  Not true.  Satellite competes with regular radio, internet radio, and Ipods (podcasts).  The bottom line is regular radio is losing money big time.  The revenue from advertising is not there like it used to be.  Notice how much more commercials you hear now?  It's because they needed to lower ad prices to get people to advertise.  They make up for it with more commercials.  Not to mention the lawsuits of all the people they fired that they still have to pay.  Stern, Imus, and David Lee Roth.  Top all that off with cloudy FCC regulations and you're going to end up with some pretty boring radio.  Satellite is to radio what cable was to television.  Only it's growing faster than cable did.  The NAB knows this.  That's why this merger has not taken place already.  I say let them merge.  It's in everyone's best interest.  Everyone except the NAB.