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clrankin
Premium
join:2002-03-05
Purcellville, VA
| Let them merge, but with some conditions...
I think I have a solution that might make 99% of the people on both sides of the merger issue happy. Allow XM and Sirius to merge, but place the following conditions on the merger:
1. Channel selection on the merged entity must represent the union of current channels on XM and Sirius. Now, some stations will overlap and be duplicates (XM and Sirius both have an '80s channel, for example). In this case, one of the duplicate channels could be eliminated, provided it is replaced with something else within one year.
2. Subscription prices on the merged entity must remain reasonable. For the next three years, XM and Sirius should have to agree to only implement subscription price increases that are equal to inflation. (Additional modest increases could be allowed if the entity starts including additional channels in its standard lineup.)
3. Both brands of satellite radios (XM and Sirius) should be supported by the new entity. (I'm not sure of the technology behind this, so it might be a moot point anyway-- just thought I'd mention it though.)
4. Coverage should be expanded to Alaska and Hawaii.
The fourth point could be optional, depending upon cost and logistics; the first three should be requirements. I think this would go a long way toward answering the concerns of those who are concerned about this being a monopoly as tiers, channels, and pricing would be maintained at fair levels for the next three years under this idea. People continue to get what they want, and likely get a better product as the sports programming on both radios would now be made available to all. (I've always wanted to listen to NFL games in the winter, but have been an XM subscriber for years and have not wanted to also buy a Sirius radio and subscription just for that.)
XM and Sirius would still benefit from this merger, as they would be able to reduce their combined operating budget and boost their bottom line. If one assumes that the installed subscriber base remains constant or increases over the three year period following the merger, this allows them to remain solvent and put together a comprehensive strategy for providing even more innovative programming in the future. On the surface, this sounds like a win-win situation to me.
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Some terrorists don't wear rags on their head, go without showers for weeks, and smell like camel crap. Instead they live in America and support Hillary Clinton and Barack Obama for president. | |
stickfigure
join:2002-06-11
El Cajon, CA
| Your conditions have already been met....
»www.usatoday.com/money/media/200···at_x.htm
Also, those who keep stating prices would increase, here's a great point made by Sirius CEO Mel Karmazin:
"Q: If you're allowed to merge, will you use the monopoly power to raise monthly fees above the current $12.95?
A: If we want to get more than the 10% of the population currently subscribing, we have to make it financially attractive, and there are still so many people that haven't been convinced that it's worth their while to pay for radio. If we can't get more subscribers at $12.95, what would make us think that we can get more at $15.95? " | |
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