Wednesday, March 26, 2008

XM Sirius Merger

I have a couple of questions regarding the upcoming merger of XM and Sirius Satellite Radios:
(for the record I have Sirius in my car)

1) How will the merger effect the service I currently have?

2) Will I have to buy additional equipment?

3) How much will the monthly fee go up (despite what they say we know it will)

4) What stations from each company will I have access to and what stations from Sirius will they drop

Those questions will need to be answered.

5 comments:

Robert E Wilson said...

1. (It's 'affect', not 'effect') You may get access to XM stations that were different than Sirius stations. (If there even were any.)

2. I extremely doubt it.

3. Satellite radio has not exactly taken the world by storm. Most people only have it because it came with their car (including me). I doubt they can raise prices and keep the marketshare they have as it is.

4. No idea except that it probably will be more XM stations dropping since XM didn't have the ratings that Sirius did.

Erik said...

They can and will raise prices as all mergers do. Remember less competition means bigger prices as it is in every industry it occurs. (Re Cable, Gas, Electric I can go on)

Erik said...

Just to show how wrong you are and to show I will be paying more for less I refer you to this article in the USA Today

http://www.usatoday.com/news/washington/2008-03-24-4067725208_x.htm

The companies have pledged that the combined firm will offer listeners more pricing options and greater choice and flexibility in the channel lineups they receive. If the deal is approved, the companies have said they would offer pricing plans ranging from $6.99 per month, for 50 channels offered by one service, up to $16.99 a month, where subscribers would keep their existing service plus choose channels offered by the other service.

Last I checked (I realize you being a Bush supporter you might not be good at math as he isn't) but $16.99 is greater then the $12.95 I pay now. I could be wrong but I don't think so.

Robert E Wilson said...

Yes, but $6.99 is less than than $12.99. You must have Hillary Clinton's memory.

As far as no competition raising prices. I agree but satellite radio is not attracting that many people. The very reason for the merger is there wasn't enough marketshare for two separate companies.

If satellite radio gets more popular, then I'd worry about prices going up.

Erik said...

You mean 8 years of peace and a budget surplus that the Clinton administration left us before Bush pissed it away to lead us to where we are now??