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story category XM/Sirius Merger Finally Approved
New programming packages available soon
09:48AM Saturday Jul 26 2008 by KathrynV
tags: satellite · fcc · Radio · business
It has been nearly a year and a half since the nation’s only two satellite radio operators, XM and Sirius, announced their plans for a merger. Throughout that time, the merger has been pending approval from the FCC. There have been many concessions asked of the two operators prior to approval including the most recent requirement that $19 million be paid to the U.S. Treasury for outstanding charges of certain FCC rule violations. Having met that final requirement, the merger has at last been approved. This leaves the nation with only one satellite radio company but they say this is not a monopoly because of the fact that there are so many alternative methods of listening to audio entertainment.

Subscribers can keep the radios they have now to receive a mixture of channels from the merged company but new radios will be released within the next few months. The companies plan to maintain their own separate programming identities. They will be offering a variety of packages, including some at a lower cost than those available now, which include channels from both operators but each package is composed of more channels from one or the other. New radios offering these packages could be built into cars within the next year or two.

Related:
  1. XM/Sirius Suspicious of Anti-Merger E-mails
  2. XM / Sirius Merger Extended
  3. Tuesday Morning Links
  4. Friday Evening Links
  5. Monday Morning Links
  6. Monday Evening Links
  7. Tuesday Morning Links
  8. Tuesday Evening Links
Forums » XM/Sirius Merger Finally Approved
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Skeedatl
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edit:
July 26th, @09:56AM

'Bout friggin' time

Of course not in time to get MLB on Sirius this season.

These regulators and Senators pulling their strings are so friggin' corrupt it's disgusting. 16 months this took. Meanwhile Exxon-Mobil, Maytag, mergers that actually affect people fly through no problem.

Gov't is so beyond broken.

PBX Tech
Godsmack on XM48 Squizz
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edit:
July 26th, @10:03AM

Re: 'Bout friggin' time

agreed. and whats the $19 million be paid to the U.S. Treasury for outstanding charges of violations related to radio receivers and ground-based signal repeaters.

quetwo
That VoIP Guy
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East Lansing, MI
·TDS

Re: 'Bout friggin' time

XM was found to be putting out too much wattage on their terresterial repeaters early last year. The FCC granted them X wattage for a certain site, they were outputting 2*X. This is why in Chicago, Denver, Atlanta and parts of St. Louis that you have less coverage in the downtown areas than you did last year.
bgraham

join:2001-03-15
Smithtown, NY

Is there any other competition?

I am not interested in satellite radio, and probably never will own one, but if I read this correctly there is no longer any competition so they are free to raise prices now.

ztmike
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Re: Is there any other competition?

said by bgraham See Profile :

I am not interested in satellite radio, and probably never will own one, but if I read this correctly there is no longer any competition so they are free to raise prices now.
Bingo.
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bgraham

join:2001-03-15
Smithtown, NY

Re: Is there any other competition?

Of course the customers will have to eventually pay the $19 million.

PBX Tech
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edit:
July 26th, @10:14AM

Re: Is there any other competition?

isnt there a price increase freeze for three years?
"The companies voluntarily agreed to a set of conditions, including a three-year price cap...."
DoRight

join:2007-07-20
Mechanicsburg, PA

Re: Is there any other competition?

Yes...
Austinloop

join:2001-08-19
Austin, TX
And, how, exactly, will this be different than any other business???

TK Junk Mail
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said by ztmike See Profile :

said by bgraham See Profile :

I am not interested in satellite radio, and probably never will own one, but if I read this correctly there is no longer any competition so they are free to raise prices now.
Bingo.
Bango. You are wrong. The deal has a 3 yr price freeze.
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neonhomer
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Actually, I think there was some stipulation in the deal saying they can't change prices for 5 years....

ptrowski
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said by ztmike See Profile :

said by bgraham See Profile :

I am not interested in satellite radio, and probably never will own one, but if I read this correctly there is no longer any competition so they are free to raise prices now.
Bingo.
Wrongo, there will be a 3 year price cap.
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PBX Tech
Godsmack on XM48 Squizz
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there's always HD radio available. lol
tbone2006

join:2006-07-22
Abilene, TX

Re: Is there any other competition?

I know you are kidding, but it does make we wonder when my crap town will get HD readio. It took us forever to get digital coverage for cell phones, but that is another story.

TK Junk Mail
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The deal guarantees no price increases for 3 yrs:
»www.msnbc.msn.com/id/25856170/
The companies voluntarily agreed to a set of conditions, including a three-year price cap
knkayotte

join:2001-02-02
Camp Verde, AZ
·Packet8

3 year price cap on the merger. Plus, haven't you heard of Radio, CD's, ipods, MP3 players? Plenty of ways for folks to listen to music.

This a pay for service product, you don't have to buy it if you don't want it. If prices get to high, people won't buy the service.

chiadi

@rr.com

Re: Is there any other competition?

TOO high, not "to high"....

pnh102
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said by bgraham See Profile :

I am not interested in satellite radio, and probably never will own one, but if I read this correctly there is no longer any competition so they are free to raise prices now.
There's plenty of competition to satellite radio:

1. Traditional off-air radio stations which are free.
2. MP3 players loaded with your own audio recordings.

I don't see what the issue is with the price as satellite radio is a luxury service. People who can't afford it shouldn't be buying it to begin with.
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Re: Is there any other competition?

said by pnh102 See Profile :

said by bgraham See Profile :

I am not interested in satellite radio, and probably never will own one, but if I read this correctly there is no longer any competition so they are free to raise prices now.
There's plenty of competition to satellite radio:

1. Traditional off-air radio stations which are free.
2. MP3 players loaded with your own audio recordings.

I don't see what the issue is with the price as satellite radio is a luxury service. People who can't afford it shouldn't be buying it to begin with.
I'm in full agreement with you here. I don't buy the argument that there is no competition to satellite radio.

You have, as you said, traditional radio. Then people have MP3 players which can be connected to any car via an FM transmitter, or the direct "aux" link right to the stereo. Or, in some cases, your car's CD player/changer will play MP3 data discs. I've loaded up a 700MB CD before with a number of songs, and used that in lieu of my Sirius, when the mood struck me.
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Neyland85

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Re: Is there any other competition?

Sure, but isn't there much more to Sat radio than the music?

Jeffrey
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Re: Is there any other competition?

said by Neyland85 See Profile :

Sure, but isn't there much more to Sat radio than the music?
There's some exclusive content, like Howard Stern on Sirius. That's no different - in my eyes - than The Sopranos exclusive to HBO or Weeds exclusive to Showtime. If you want to watch either of those shows, you have to subscribe.
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Neyland85

join:2003-02-04
North Augusta, SC
·AT&T Southeast

Re: Is there any other competition?

said by Jeffrey See Profile :

said by Neyland85 See Profile :

Sure, but isn't there much more to Sat radio than the music?
There's some exclusive content, like Howard Stern on Sirius. That's no different - in my eyes - than The Sopranos exclusive to HBO or Weeds exclusive to Showtime. If you want to watch either of those shows, you have to subscribe.
There's not 'some' exclusive content... compared to most areas normal radio it has ALOT of exclusive radio. There's easily 50 channels on my XM that I can't get by radio,cd, or MP3 player.

For those, there is no compititon. For music, sure there's compitition, but there's probably an equal amount without compition now the two are one.

Jeffrey
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edit:
July 26th, @10:38PM

Re: Is there any other competition?

said by Neyland85 See Profile :

said by Jeffrey See Profile :

said by Neyland85 See Profile :

Sure, but isn't there much more to Sat radio than the music?
There's some exclusive content, like Howard Stern on Sirius. That's no different - in my eyes - than The Sopranos exclusive to HBO or Weeds exclusive to Showtime. If you want to watch either of those shows, you have to subscribe.
TThere's easily 50 channels on my XM that I can't get by radio,cd, or MP3 player.

Traditional FM radio isn't like Satellite radio, so I don't find it an accurate comparison between music. Satellite radio is setup by genre to gear toward a specific listening audience, and FM radio is setup to sell music.

Sirius has Howard, Martha, NFL, NHL, etc. XM has MLB and Oprah.

If you want The Sopranos or Weeds, then buck up for HBO and/or Showtime. If not, you're stuck with basic cable.
--
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gsgsgsds

@comcast.net

said by Jeffrey See Profile :

said by Neyland85 See Profile :

Sure, but isn't there much more to Sat radio than the music?
There's some exclusive content, like Howard Stern on Sirius. That's no different - in my eyes - than The Sopranos exclusive to HBO or Weeds exclusive to Showtime. If you want to watch either of those shows, you have to subscribe.
there is a lot more than that. Think Onstar. Whatever Onstar can do, there can do but for a larger audience. Music is just one factor. You have real time GPS, traffic, video just to name a few. terrestial radio can not meet that, hence their complaint. The NAB can still appeal this with the U.S courts of Appeal
jclos

join:2002-12-20
Yonkers, NY

You guys don't get it,they cant afford to raise prices they cant be a monopoly because no one really needs them.It's a luxury to have it not a necessity if they try and raise prices and screw with the consumer the consumer can go back to free radio or their ipod that simple.Lets say McDonalds and Burger King merged it's not a monopoly on fast food restaurants you can eat anywhere same thing with this merger we don't need satellite radio,its nice to have and I like it but the second they try to strangle hold me Im out.

denb45

join:2001-02-04
Albuquerque, NM
·Comcast


edit:
July 26th, @11:19AM

Re: Is there any other competition?

I cannot for the life of me understand why Satellite Radio is such a big deal? did you know you can hear the very same kinda music on free Radio or HD Radio, the only REAL difference is, Satellite Radio has NO ADDS, but it's still the same ole gener crap played and aired on ANY Radio.....I have SIRIUS-on-line Radio it cost $13.84 a month, (I don't want or need it in my car) and I only like a few Channles, some of my FAVS are: Totally 70's, Soul Town, The Strobe, and form what I understand XM-Radio has almost the exact same thing
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macaholic
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Re: Is there any other competition?

actaully we like the NPR and public news channels when we drive. Lets not forget some folks like listening to things outside of the playlist...
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rb2006

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said by denb45 See Profile :

did you know you can hear the very same kinda music on free Radio or HD Radio, the only REAL difference is, Satellite Radio has NO ADDS
No ads on the music channels is nice, but another major difference is I have my choice of 100+ stations on satellite. That's quite a few more stations than I can pick up on any AM/FM/HD receiver and probably more songs to choose from than I could have available in my 6-disc CD changer.

Besides, I pay to listen to Howard and Bubba. Everything else that comes with it is just bonus.

keysgate

join:2003-03-15
Trenton, MI
your paying for NO ads. not the music. if you want to listen to two song tracks and then 15min. of the stupidest commercials--be my guest

Neyland85

join:2003-02-04
North Augusta, SC

Re: Is there any other competition?

I also pay for Opie and Anthony, Ron and Fez, Fox and CNN News, Baseball, College Football, 60/20 Sports, Radio Disney and XM Kids, etc....

Of course... steaming of the above over the net.
moonpuppy

join:2000-08-21
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said by denb45 See Profile :

I cannot for the life of me understand why Satellite Radio is such a big deal? did you know you can hear the very same kinda music on free Radio or HD Radio, the only REAL difference is, Satellite Radio has NO ADDS, but it's still the same ole gener crap played and aired on ANY Radio.....I have SIRIUS-on-line Radio it cost $13.84 a month, (I don't want or need it in my car) and I only like a few Channles, some of my FAVS are: Totally 70's, Soul Town, The Strobe, and form what I understand XM-Radio has almost the exact same thing
You are paying for radio since you listen to it online.

And there is a difference otherwise you wouldn't pay for it in the first place.

Do this. Take your favorite channels and find that same music on regular radio. When you realize that you can't in many cases, then you will see why people pay for radio.
Austinloop

join:2001-08-19
Austin, TX
Try driving toward west Texas from where I live and after about an hour, you are trying to find a station to listen to and then repeat that activity every 30 minutes or so.
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said by denb45 See Profile :

did you know you can hear the very same kinda music on free Radio or HD Radio
I have heard hundreds of songs on Sirius classic rock stations that I have never heard and will never hear on free FM radio.

The playlists aren't even close.

When is the last time you heard a Frank Zappa song on FM radio? Or the entire 11+ minute track, "The End" by the Doors?

I'm not sure how you say you use Sirius online, but then you say they just play the same old crap on any radio, when clearly that is not the case, unless you CHOOSE to listen to the top 40's Sirius/XM stations. Then yes, you'll hear the same crap you'd hear on FM.

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edit:
July 27th, @03:30AM

Not only no ads but unedited content as well. The one and only choice for me on FM for my style of music butchers the music when editing it. Not only that, this one and only free station for my style really sucks.

Played on any air radio you say? Please by all means, show me an OTA station in the Detroit area that will play Sepultra, Testament, Slayer, Shadows Fall, Acid Burn (Just a few to get ya started). Hell, show me one OTA station around here that will play it unedited.

Done with that search yet? No I didn't think so.
DoRight

join:2007-07-20
Mechanicsburg, PA

Re: Is there any other competition?

You must be a Hard Attack listener on Sirius.. Myself I perfer channel 20 (Octane)..
pepperxn

join:2001-02-21

said by jclos See Profile :

You guys don't get it,they cant afford to raise prices they cant be a monopoly because no one really needs them.It's a luxury to have it not a necessity if they try and raise prices and screw with the consumer the consumer can go back to free radio or their ipod that simple.Lets say McDonalds and Burger King merged it's not a monopoly on fast food restaurants you can eat anywhere same thing with this merger we don't need satellite radio,its nice to have and I like it but the second they try to strangle hold me Im out.
Actually, you don't get it. It IS a monopoly, according to people who know about these things. They WILL raise prices, after the 3 years is up. They need to stay in business. When a replacement satellite needs to go up, one network will get killed off to save money. Channels will merge, channels will get dropped. The XM name could be dropped to save advertisement money. Talkshow hosts pay will drop a bit. All this to save money. It IS a luxury service, but people will continue to pay (quietly). It's like a cable company, you don't need cable. You could use over the air tv, but you get more channels with cable. The cable companies (like comcast) raise prices to make more profit, some people switch to other smaller cable companies or move over to satellite, but the majority of them will continue to quietly pay the higher price. If McD and BK did merge, you know people will continue to go there.

The reason that both services were $12.95/month, was because they WERE competing. XM and Sirius didn't listen to the FCC in the late 90s, and because of THAT they now were able to merge. What the FCC didn't say now as a requirement is for them to sell off some spectrum, so another sat radio competitor could form. Looks like they don't want that, do they? Saying that they compete with regular radio and the mp3 player is like saying batteries compete with the AC adapter. Regular radio is free, and there's many commercials, and is limited to a city metro area. MP3 players contain music that you want to hear specifically. It's like saying over the air tv competes with cable/satellite tv. You get what you pay for. Free tv has limited amount of channels, but if you pay for cable/sat you get more. How about for truckers, they'll have 1 sat radio provider to choose from.

fyyh xj

@comcast.net

Re: Is there any other competition?

not totally true. the providers (NFL, Starz, etc.,) raises prices to the cable company who in turn passes that on to the subscribers. have you notice the internet is the same price year after year but not cable tv? that is why.

about sat. radio, when the artists raises their prices sirius will pass that on to the consumers.

Maccawolf
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Hillsdale, NJ

said by jclos See Profile :

You guys don't get it,they cant afford to raise prices they cant be a monopoly because no one really needs them.It's a luxury to have it not a necessity if they try and raise prices and screw with the consumer the consumer can go back to free radio or their ipod that simple.Lets say McDonalds and Burger King merged it's not a monopoly on fast food restaurants you can eat anywhere same thing with this merger we don't need satellite radio,its nice to have and I like it but the second they try to strangle hold me Im out.
You mean like CABLE TV?????????
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Richard B
Fur It Up

join:2007-06-22
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The problem is both were losing money. simply the market could not support competition. Regardless prices will have to be raised. The again, I do not see this as a viable business model. PS there still competition, terrestrial radio, and Podcast.

mrchris
Stop deleting my posts
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North Babylon, NY

Re: Is there any other competition?

I don't count "Play the same thing 10 times a day" stations as competition.

Maybe it was just best to keep them split just for consumer choice...
james1

join:2001-02-26
antarctica

said by bgraham See Profile :

I am not interested in satellite radio, and probably never will own one, but if I read this correctly there is no longer any competition so they are free to raise prices now.
But you're the reason they wont raise prices. You dont NEED satellite radio. If they raise their prices, people will just drop their subscription and use their Ipod, or listen to the normal radio. They have lots of competition.

JamesPC

join:2005-10-12
Orange, CA
hello people... what do you think your going to use. STANDARD FM RADIO. That is enough competition.

MadMANN
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·Comcast

said by bgraham See Profile :

I am not interested in satellite radio, and probably never will own one, but if I read this correctly there is no longer any competition so they are free to raise prices now.
What's your point? This is not a "necessity" as cable TV, phone, or power is determined to be. The price for this technology will be regulated by the market. If they raise rates too high, people just won't pay it and will be able to find their sports, music, and talk elsewhere.

Satellite radio competes for the consumer's disposable income along with everything from free radio to CDs, to mp3 players, to the internet, and both companies combined have only 5% of the market.
smcallah

join:2004-08-05
Home

Re: Is there any other competition?

said by MadMANN See Profile :

and both companies combined have only 5% of the market.
5% of what market exactly? If what they say is to be believed, they have 20 million combined subscribers.

Even if we get silly, and say that all 300 million U.S. citizens are radio listeners, and that would be 100% of the radio market listeners, and you take that 20 million XM/Sirius subscriber number... you'd get 6.67%, that is a bit higher than 5%, especially when you consider that not all 300 million US citizens are the actual market. It would be actual households counted as listeners/subscribers. That would put it significantly higher than 5% of the radio market.

But you didn't really say what market.
smcallah

join:2004-08-05
Home

There is plenty of competition from free FM/AM radio. The keyword is that it is free.

Not to mention, iPods and other MP3 players that easily work in cars nowadays.

If they raise the prices, people can easily fall back to the competition that has ALWAYS existed.

It's not like they can force anyone to pay higher prices.

quetwo
That VoIP Guy
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East Lansing, MI
·TDS

As long as they don't mess with the best-of-breed channels

I'm hoping they don't fudge with the channels that are best-of-breed. XM has some great Alt. Rock / Classic Rock channels, and I've been told that Sirrus has some great top-40 channels. I'm hoping that these mergers don't destroy the channels people have grown to love over the last nearly 10 years.
jclos

join:2002-12-20
Yonkers, NY

Re: As long as they don't mess with the best-of-breed channels

Yes let hope so I tried xm on the web and some of their rock stations are really good.

Jagermeistr
Premium
join:2002-08-18
Oradell, NJ
·Optimum Online

Alright

I dont think its such a terrible thing- the fact that both these companies are hemorrhaging cash prevents them from jacking up prices. Being able to pick 50 channels and only have to pay $6.99 is a great deal since I only really listen to 4 or 5 channels on XM consistently.

In less than 80 days however Opie and Anthonys contract runs out, XM better resign them.

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edit:
July 26th, @10:42AM

Re: Alright

Until the 50 or so channels that you can pick only include 3 of the 5 channels that you listen too. To get the other 2 or 3 channels you want they will be part of this other package at another price point. Now you have to pay for two tiers to get the channels you listen to now.

Bingo..price increase. Welcome to cable tv pricing structures. Bend over everyone. You will pay more for less. Which, if you can't figure it out, is ultimately a price increase.
--
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Neyland85

join:2003-02-04
North Augusta, SC
·AT&T Southeast

said by Jagermeistr See Profile :

In less than 80 days however Opie and Anthonys contract runs out, XM better resign them.
Amen!

Since we have 4 radios in a family plan, I don't want to pay more than the current family option for each add on radio than I currently pay.

Gerard780
Premium
join:2002-01-25
Simpsonville, KY

sub to both

I have subscriptions to both.. I wonder when/if I'll be able to combine them into one bill..

-Gerard

Jeffrey
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Re: sub to both

said by Gerard780 See Profile :

I have subscriptions to both.. I wonder when/if I'll be able to combine them into one bill..

-Gerard
I don't know for sure, but I'm guessing that's possible. It's my understanding that you'll be able to use your XM (or Sirius) radio to get content from the other. So, it may very well work out to be that.
--
"Honesty may be the best policy, but it's important to remember that apparently, by elimination, dishonesty is the second-best policy." - George Carlin

[my ramblings]

NetAdmin

join:2008-05-22

Okay, now let's see what channels get the axe

The only downside to this merger is that some channels are no doubt going to get the axe... As long as the dance/electronic channels, BBC Radio One and the NPR stations stay, I'll be happy, but other subs might not like it.
--
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tcope
Premium
join:2003-05-07
Sandy, UT
·Comcast

Merger

I really don't think that mp3, HD radio, radio, etc were valid forms of competition, I'm glad to see them merge. I have both radios and it's just too expensive as all but 1 are considered "primary" so I'm paying full price for 2 radios. I think I might still jump on the $77/year XM deal as I don't think it will be beat. But I'll call that the primary radio and take 1/2 price on the other 2.

Richard B
Fur It Up

join:2007-06-22
Portland, OR

Re: Merger

In away it is, the merged companies need new business to survive but I see as an unnecessary expense when I can jut rip my CD to and Mp3 player or download the commercial free Podcast.
tcope
Premium
join:2003-05-07
Sandy, UT
·Comcast

Re: Merger

said by Richard B See Profile :

In away it is, the merged companies need new business to survive but I see as an unnecessary expense when I can jut rip my CD to and Mp3 player or download the commercial free Podcast.
Does that music change everytime you listen to it? How muh did it cost? Comparing mp3s or CDs to sat. radio is not really valid.

agilityman00
Dogs rule
Premium
join:2004-12-19
Carmel, NY

Sirus Life Time Subscription

OK, so what happens to that? I paid $400.00 for it. I hope I'm not screwed.
voogru

join:2001-07-22

Re: Sirus Life Time Subscription

Yeah, Sirius is going to piss off the consumer right away by nixing the people who invested in a lifetime sub.

Yeah right.

You're lifetime sub will have the same amount of service that you originally bought. Forever.