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FCC's Martin Feigns Consumer Advocacy in XM/Sirius Deal
Who are you and what did you do with Kevin Martin?
by Karl Bode Wednesday 07-Mar-2007 tags: satellite · fcc · business · Op/Ed
FCC chief Kevin Martin, who has never seen a phone company proposal, merger or talking point he hasn't liked, is apparently showing some skepticism over the XM Sirius deal, reports the NY Times. Martin seems to be questioning executive claims that subscribers of the new combined service would pay the same rates, but receive additional content. Insiders claim Martin is "[skeptical] about both the deal and the way it was being sold in Washington as more beneficial to consumers than it might actually be."

Is this the same Kevin Martin who showed not the slightest shred of skepticism over AT&T promises that the BellSouth merger would result in competitive utopia? The same Kevin Martin who shows absolutely no skepticism when it comes to the claims of the broadband over powerline industry? While skepticism for the benefit of consumers may be nice, it's drastically out of character for the FCC chief, signifying that something else is afoot.

That something else is Kevin Martin's financial loyalty to NAB, who oppose the merger because the new company would fiercely compete with their traditional radio operations. So while consumers will once again get paid lip service in the run up to this merger, Martin is primarily concerned with financial loyalty to some massive companies (and post-FCC career advancement).

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BF69
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Well I guess

When he turns down this merger and one of them goes out of business and the remaining one has no competition and can raise prices at will, that'll be better for consumers.

n2jtx

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Re: Well I guess

They both agreed at the time their licenses were issued that neither provider would try to acquire the other. That agreement is still in force unless they are now claiming it was just a joke.
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nixen
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Re: Well I guess

said by n2jtx:

They both agreed at the time their licenses were issued that neither provider would try to acquire the other. That agreement is still in force unless they are now claiming it was just a joke.
Technically, neither is trying to acquire the other: it's a "merger of equals". Acquisition implies that one owns a controlling stake of the other. Merger of equals implies that neither owns a controlling stake of the other.

-tom
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P Ness
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said by n2jtx:

They both agreed at the time their licenses were issued that neither provider would try to acquire the other. That agreement is still in force unless they are now claiming it was just a joke.
WRONG

the agreement is that they would both get a spectrum to utilize that would not overlap. they actually agreed that within 7 years radio's would be built that could accept both services.

it said that no one company can have both spectrums. so in theory they could give back one spectrum fold the company together under one and raise prices 10x with only the same number of channels today....
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jtudor
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Re: Well I guess

said by P Ness:

together under one and raise prices 10x with only the same number of channels today....
So you are saying that a monthly subscription to the combined company would cost $129.50 a month for one radio and each additional radio under a family plan would cost $69.90 a month?

If you believe this you are out of your mind!!!!

Nobody is stupid enough to raise prices that much. Any idiot knows that they would lose all their customers and be out of business within 60 days, if not sooner if they tried something like that. I believe you need to seriously (Siriusly??) rethink your statement.
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P Ness
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Re: Well I guess

said by jtudor:

said by P Ness:

together under one and raise prices 10x with only the same number of channels today....
So you are saying that a monthly subscription to the combined company would cost $129.50 a month for one radio and each additional radio under a family plan would cost $69.90 a month?

If you believe this you are out of your mind!!!!

Nobody is stupid enough to raise prices that much. Any idiot knows that they would lose all their customers and be out of business within 60 days, if not sooner if they tried something like that. I believe you need to seriously (Siriusly??) rethink your statement.
NO i said they "could" not that they "would"...
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said by BF69:

When he turns down this merger and one of them goes out of business and the remaining one has no competition and can raise prices at will, that'll be better for consumers.
It's not like either service would just stop working one day.

It's like in any other business. Once they declare bankruptcy, and can get out from underneath all the bad choices that were made, someone will buy it.

Even if both of them went bankrupt, they would both exist.
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Nightfall
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said by BF69:

When he turns down this merger and one of them goes out of business and the remaining one has no competition and can raise prices at will, that'll be better for consumers.
This is a damned if you do and a damned if you don't situation. What I don't believe is the FUD that this new company will raise prices or the one left will raise prices. Guess I haven't read the plan that most people here have read. Maybe you can provide a link to proof?
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morbo
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Re: Well I guess

said by Nightfall:

What I don't believe is the FUD that this new company will raise prices or the one left will raise prices.
said by the man with no long term memory

Nightfall
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Re: Well I guess

said by morbo:

said by Nightfall:

What I don't believe is the FUD that this new company will raise prices or the one left will raise prices.
said by the man with no long term memory
I take it thats a no? Thought so.
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said by BF69:

When he turns down this merger and one of them goes out of business and the remaining one has no competition and can raise prices at will, that'll be better for consumers.
I think the audio quality on either provider isn't worth monthly subscription fee's. Sounds too compressed. I'd rather have HD radio, which is free.
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Re: Well I guess

said by phattieg:

said by BF69:

When he turns down this merger and one of them goes out of business and the remaining one has no competition and can raise prices at will, that'll be better for consumers.
I think the audio quality on either provider isn't worth monthly subscription fee's. Sounds too compressed. I'd rather have HD radio, which is free.
You still have to pay for a HD Radio, so it isn't like that is free.
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BabyBear
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Re: Well I guess

Come on, you know he was referring to the service, not the equipment.

Nightfall
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Re: Well I guess

said by BabyBear:

Come on, you know he was referring to the service, not the equipment.
There are two costs you have to look at when choosing any service. The cost of the equipment and the service. When he says HD Radio is free, thats not accurate becuase you have to pay for the equipment. Its not like you can just flip a switch and listen to it without the hardware purchase.
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dentman42
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said by phattieg:

I think the audio quality on either provider isn't worth monthly subscription fee's. Sounds too compressed. I'd rather have HD radio, which is free.
I was looking at some new (home) speakers a couple weeks ago. They couldn't get any FM reception in the store, so they hooked up an XM receiver. It sounded so bad that I made them get a CD to demo with - the XM made a 128k .mp3 sound good by comparison. I knew it was bad, but this was the first time I ever heard it on higher end equipment.

I've heard the same claims made about HD radio, but haven't actually tried an HD receiver.
rjbasye

join:2000-05-24
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For the price of an HD Radio you can get 2yr subscription to Satellite Radio. HD Radio is not a national service either with limited signal range.

Nightfall
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Re: Well I guess

said by rjbasye:

For the price of an HD Radio you can get 2yr subscription to Satellite Radio. HD Radio is not a national service either with limited signal range.
Don't forget to add in the fact that you get to listen to those commercials in brilliant HD quality on HD Radio.
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inteller
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Cliff notes:

this is Martin's way of saying he hasn't recieved his pay (off) check from XM and Sirius yet.

Romney2012
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Re: Cliff notes:

said by inteller:

this is Martin's way of saying he hasn't recieved his pay (off) check from XM and Sirius yet.
It is nothing of the sort. Letting a 2 company market shrink to 1 was never going to be approved.
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1 edit

Re: Cliff notes:

said by Romney2012:

Letting a 2 company market shrink to 1 was never going to be approved.
It's going to happen regardless. One of them will end up folding eventually. Neither of them can sustain financial losses forever. It's just a matter of which one will collapse first.

A merger is a "cleaner" way for this to happen. If one of the players is forced into bankruptcy it will be a huge headache for end users.
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RadioDoc
58ef2c0
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Re: Cliff notes:

Let 'em die. The spectrum they are allocated can be better used for other things.

Bad business idea; bad business model.
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moonpuppy

join:2000-08-21
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Re: Cliff notes:

said by RadioDoc:

Let 'em die. The spectrum they are allocated can be better used for other things.

Bad business idea; bad business model.
Sorry, have to disagree with you on this.

The idea is great. I have Sirius and get the opportunity to listen to music that is not heard in my area at all. Normal radio is filled with commercials and bad music. Clear Channel might be trying to rid themselves of XM but they are BIG players in regular radio along with Infinity Broadcasting.
RadioDoc
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Re: Cliff notes:

said by moonpuppy:

said by RadioDoc:

Let 'em die. The spectrum they are allocated can be better used for other things.

Bad business idea; bad business model.
Sorry, have to disagree with you on this.

The idea is great. I have Sirius and get the opportunity to listen to music that is not heard in my area at all. Normal radio is filled with commercials and bad music. Clear Channel might be trying to rid themselves of XM but they are BIG players in regular radio along with Infinity Broadcasting.
Many great product ideas have died on the vine because they were lousy business ideas with even lousier business plans. Being a great consumer product is not a guarantee of success.

In order to succeed XM and Sirius have to keep you as a customer long enough to pay for the considerably subsidized radio, their back-end operating costs, their advertising costs and programming costs, and then turn a profit. $12.95 a month doesn't come close to breaking even for well over a year. Sat radio has a high churn and a lot of those subscriber numbers they like to post are transient, never becoming profit. It's not as bad as Vonage but it's similar.

Clear Channel is breaking itself into smaller bits in anticipation of being taken private. They got rid of their stake in XM awhile back.

Internet radio has become a strong, viable alternative to satellite radio. It represents everything corporate media isn't, and XM and Sirius are just as corporate as Clear Channel and CBS Radio (Infinity). If you want a true alternative to corporate swill, get behind the current drive to save webcasting from the RIAA.
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Kylemaul
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Re: Cliff notes:

said by RadioDoc:

Internet radio has become a strong, viable alternative to satellite radio. It represents everything corporate media isn't, and XM and Sirius are just as corporate as Clear Channel and CBS Radio (Infinity). If you want a true alternative to corporate swill, get behind the current drive to save webcasting from the RIAA.
I'm all over that, but need more info on the "current drive" you mention. TIA!
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Michieru2
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Internet radio will have to pay high enough royalties just to have them do what they are suppose to do.

The only difference is that XM is not displayed in some screen so in short they cannot transmit advertisement on there web pages because that simply does not exist.

So in order to pay for commercial free music you are charged that subscription fee. If they did not then those 50 dollar radios will cost a nice 300 dollars because one way or the other they must earn profit and to make things better. Back when XM was first launched I believed the cheapest radio was a good 100 dollars or more and the price was 9.99 per month.

Now radios are 50 dollars and the price per month increased to 12.95.

Now if I bring back that old argument over the AT&T merger. Wouldn't the same apply for XM?

After all they are classified as radio and it does not matter how it's being transmitted so that means they are also competing with every other single radio station in the country.

Also IP delivery to the car could be done with a simple EV-DO HSDPA card and could transmit online radio to your car over a IP backbone such as Sprint or Cingular but your coverage will vary and unlike traditional systems XM which is satellite is delivered across the entire United States and bleeding in some other parts such as lower canada and mexico.

On top of that satellite has proven useful to deliver video and audio and with increased capacity HD content could be provided with streams of that rating CD quality.

Also FM is transmitted at 64kbps while XM is 96kbps AAC.
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said by RadioDoc:

Internet radio has become a strong, viable alternative to satellite radio. It represents everything corporate media isn't, and XM and Sirius are just as corporate as Clear Channel and CBS Radio (Infinity). If you want a true alternative to corporate swill, get behind the current drive to save webcasting from the RIAA.
Internet radio does not work in a moving vehicle.

Add to that the new rates being imposed on the internet broadcasters and see how many of them die not because of a bad business model but by being run out of business due to the greed of the RIAA. Where is the government in this argument?

RideRed
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said by RadioDoc:

Let 'em die. The spectrum they are allocated can be better used for other things.

Bad business idea; bad business model.
Like? If you had to listen to Los Angeles market radio you would be thankful for Sirius.
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RadioDoc
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Re: Cliff notes:

Like? What? I have to listen to Chicago market radio, which is as bad as LA. Except that I don't listen to it much anymore.

That you find Sirius easier to listen to than Los Angeles AM and FM stations does not keep Sirius in business.

If it was the Second Coming of Radio it would be wildly successful. It isn't, because not enough people are willing to pay for it. Pretty simple business facts.
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RideRed
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4 edits

Re: Cliff notes:

said by RadioDoc:

Like? What? I have to listen to Chicago market radio, which is as bad as LA. Except that I don't listen to it much anymore.

That you find Sirius easier to listen to than Los Angeles AM and FM stations does not keep Sirius in business.

If it was the Second Coming of Radio it would be wildly successful. It isn't, because not enough people are willing to pay for it. Pretty simple business facts.
Sirius went from 600,000 to nearly 7 million subscribers in a year...sounds pretty successful to me. Their financials are bad because they're having to outspend XM for talent (Stern, MLB, NASCAR) which would not be the case if they merged at 15 million subscribers about the same amount that subscribe to DirecTV which has been around for 15 years. And as cars are replaced and have sat radio those numbers will continue to rise.

If short term financials were the end all of success, we would never have any new technology. Look at the 10's of billions being spend on FiOS but it's necessary to spend.
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RadioDoc
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2 edits

Re: Cliff notes:

If 7 million was enough, they wouldn't be crying about going tits up now, would they? Your sophistic analysis aside, its a case of losing money with every sale but making it up in volume. There is no valid reason to allow this merger. Satellite radio is a private enterprise, it is a subscription service, and it is no different than any pay cable channel. If the overspent then it's entirely their fault.

I have no sympathy for any company which can't keep its dick hard long enough to finish the job. See what I mean by being a bad business model? Your FiOS example is specious. Verizon is not whining about needing to merge with Comcast to "compete". They are in it for the long haul, unlike the XM and Sirius backers who are trying to cash out before their house of cards collapses. The Howard Stern fiasco brilliantly illustrates how inept the people running these companies are.

Allowing this merger is stupid. Take the frequencies away and give them to someone who knows what they are doing if they can't figure out how to make it work financially. Mel is merely trying to make this look like a dire situation to get waivers of the FCC rules governing satellite radio. I doubt he gives you a second thought.
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RideRed
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Re: Cliff notes:

Oh please, Verizon whines constantly and stole $2B from PA for fiber that never happened. Their latest whining is anti-muni and statewide franchise agreements "to compete with Comcast".

Stopping the merger is stupid as XM and Sirius compete with OTA radio and there is plenty of competition for a single satellite company. Then they can give back 1/2 the freqs to make the nerds who will do nothing with it happy.
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fiberguy
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It's no surprise. RadioDoc is the authority and expert on Satellite Radio too. I'm sure that your radio listening habits represent that of the masses. I'm sure that because you don't like the Chicago radio market or the L.A. radio market that no one else does either?

While I agree with you on Howard Stern, that's all I can agree with you on. Want a valid reason to let Satellite radio merge? BECAUSE THEY CAN! It's not a life sustaining service.. it's a luxury, it's a capitalistic society and if they want to merge, let them! How is this merger going to change your life?
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RadioDoc
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Re: Cliff notes:

I say let's nationalize the cable company! Kick the greedy bastards out and run it as a public service! It's not a life sustaining service.. it's a luxury, it's a capitalistic society and if we want to take it, let us! How is this going to change your life?

Please.
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AmnChode
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Re: Cliff notes:

said by RadioDoc:

I say let's nationalize the cable company! Kick the greedy bastards out and run it as a public service! It's not a life sustaining service.. it's a luxury, it's a capitalistic society and if we want to take it, let us! How is this going to change your life?

hmmm...sounds more communistic and capitalistic....
fiberguy
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Nice... after phone.

Now, how does this rant of yours equate to the two satellite companies wanting to merge with each other? Who's calling to nationalize anything with Satellite radio, a luxury and non-utility, to a cable company to which they don't want to merge which is also a luxury.

please...
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shnevdorf

join:2006-08-31
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said by RideRed:

Sirius went from 600,000 to nearly 7 million subscribers in a year...sounds pretty successful to me.
Can you please point out where this happened? Because according to Sirius they didn't do that. Take a look at this from their 2006 earnings report...

SIRIUS ended 2006 with 6,024,555 subscribers, up 82% from 3,316,560 subscribers at the end of 2005.

Looks to me like they went from 3.3 million to just over 6 million. Thats far from 600000 to 7 million.

schmol

join:2001-12-26
Windsor, PA
said by RadioDoc:

Let 'em die. The spectrum they are allocated can be better used for other things.

Bad business idea; bad business model.
Are you kidding? XM and Sirius is the way "FREE RADIO" should be, uncensored and out of the control of the communist commitee called the FCC(federal censoring commitee). Honestly, I can't listen to any type of free radio anymore, no content or even any humor.

If you are worried about your kids listening, then shut the damn radio off!!!! Take control of your kids lives and stop letting the government raise them.

I hear by call for a complete disbanning of the FCC!!!!

kfsutops
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I'm torn. I'm on the fence. I have had both services. I like some of what one offers and some of what the other offers. It would be interesting to get the best of both worlds.

The unfortunate part is that Mel is a complete idiot and liar if he says prices won't raise. In a sense the prices may not raise. What will happen is there will be less content available for that $12.95/month. Everything else will come to additional content charges..Think of cable and charging for HBO, Showtime, etc. This is what is going to happen.

XM tried charging for "premium" content. Failed. So how do you make "premium" content profitable? You get rid of competition.

I hate that I have to pay $7/month for additional radios.
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Re: Cliff notes:

said by kfsutops:

I'm torn. I'm on the fence. I have had both services. I like some of what one offers and some of what the other offers. It would be interesting to get the best of both worlds.

The unfortunate part is that Mel is a complete idiot and liar if he says prices won't raise. In a sense the prices may not raise. What will happen is there will be less content available for that $12.95/month. Everything else will come to additional content charges..Think of cable and charging for HBO, Showtime, etc. This is what is going to happen.

XM tried charging for "premium" content. Failed. So how do you make "premium" content profitable? You get rid of competition.

I hate that I have to pay $7/month for additional radios.
I just don't get why some people are saying prices will rise when there is no plan to do that. Plus, you are talking about a market where people can say no and go to ipods and other handheld music devices. In my opinion, since we are offering them on if prices will rise or not, is that prices won't go up. You may see the price go up after a few years, but thats the cost of doing business when everything else gets expensive as time goes on.

As for paying for $7 a month for additional radios, that hasn't changed. In my mind though, it isn't a deal breaker.
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N3OGH
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said by kfsutops:

The unfortunate part is that Mel is a complete idiot an liar if he says prices won't raise.
There, I fixed it for you.

Karmazen is no idiot, this guy is a master salesman, and a shady one to boot. I wouldn't trust word one that comes from his mouth.

I've had XM for about 3 years now. I love the content. The music channels are awesome and I love being able to catch the MLB pre season games. And of course, my favorite, Opie & Anthony.

As you can see by my post sig, I would rather not see the merger approved. I really don't care who's shady deal shoots it down. Leave my XM alone!
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said by kfsutops:

I'm torn. I'm on the fence. I have had both services. I like some of what one offers and some of what the other offers. It would be interesting to get the best of both worlds.

The unfortunate part is that Mel is a complete idiot and liar if he says prices won't raise. In a sense the prices may not raise. What will happen is there will be less content available for that $12.95/month. Everything else will come to additional content charges..Think of cable and charging for HBO, Showtime, etc. This is what is going to happen.

XM tried charging for "premium" content. Failed. So how do you make "premium" content profitable? You get rid of competition.

I hate that I have to pay $7/month for additional radios.
Sirius has never charged for premium content and has indicated that there are no plans to.

People here act as if XM and Sirius are the only ones competing here. Satellite radio has to compete with terrestrial radio, CD's, iPods and other sources of audio content.

To think that tomorrow Sirius could raising prices to $20 is crazy. They still have to compete and convince people listing to free radio that the service is worth what they're charging.

Meanwhile I just look at who is opposed...Ashcroft (because XM refused to pay him his lobbying money)...and more importantly, the NAB. If the National Association of [terrestrial] Broadcasters things the merger is bad it means it's great. The NAB (who ended up hiring Ashcroft) were against sat radio from the start and would ban iPods and TV if they could.

As it stands now if you want Baseball and Howard Stern you have to fork over $23/mo plus 2 radios. I'm not seeing how that is good for consumers like me who want both.
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2 edits
said by Romney2012:

said by inteller:

this is Martin's way of saying he hasn't recieved his pay (off) check from XM and Sirius yet.
It is nothing of the sort. Letting a 2 company market shrink to 1 was never going to be approved.
I'm not sure it's as cut and dry as that. I have both Sirius and XM, and I also have my iPod. I've had my iPod for a lot longer than either satellite service, and I stopped listening to regular radio a long time ago. 2001 or so. (Until Howard Stern movied to Sirius, that was the only regular radio I actually listened to. I stopped listening to music on regular radio in 2000 or 2001.)

My point is that one could argue that XM & Sirius compete with regular radio, and an entire range of Mp3 devices and other methods of distribution.
--
"When you get lost in your imaginatory vagueness, your forsight becomes a nimble vagrant."

[Ramblings] [RIP Millie 1993-2006]
jkb246

join:2000-03-18
Indianapolis, IN

Re: Cliff notes: Not 100% true (IPOD)

If my Sat radio stopped working I wouldn't be running to buy 1000 songs at .99 a pop from I tunes. I would just listen to radio. Maybe buy a few good cd's and keep doing what I was doing before I originally purchased my Sirius radio before switching to XM.
nasadude

join:2001-10-05
Rockville, MD
Reviews:
·Verizon FiOS
said by Romney2012:

It is nothing of the sort. Letting a 2 company market shrink to 1 was never going to be approved.
that's BS.

even if it's not a 2 to 1 shift, Martin hasn't had any problem shrinking the telco market. Martin cares about companies, not consumers. Even his "concern" over VOIP E911 isn't about the consumer, it's about responding to telco cries of "level playing field".

the plain truth is that NAB doesn't want this to happen, so Martin doesn't want this to happen either. As I've said before, consumers don't enter into the equation when you're talking about Martin and the FCC.

said by inteller:

this is Martin's way of saying he hasn't recieved his pay (off) check from XM and Sirius yet.
more like he's already received his check from NAB
openbox9

join:2004-01-26
Alexandria, VA
kudos:2
said by Romney2012:

It is nothing of the sort. Letting a 2 company market shrink to 1 was never going to be approved.
Is it really a 2-company market though? What about all of the traditional broadcasters spread around the world and free to consumers that the pay satrad providers are competing against? What about all of the free/paid Internet radio stations that DSLR has discussed for the last couple of days? I don't see this market as a 2-company market at all.

P Ness
You'Ve Forgotten 9-11 Already
Premium
join:2001-08-29
way way out
said by Romney2012:

said by inteller:

this is Martin's way of saying he hasn't recieved his pay (off) check from XM and Sirius yet.
It is nothing of the sort. Letting a 2 company market shrink to 1 was never going to be approved.
Wrong its not a 2 company market, they compete with 7 different radio companies, yahoo music, IPOD, Itunes, HDradio.

the SEC filing made it very clear that EVERY major radio company clearly stated in their SEC filings that THEY COMPETE DIRECTLY WITH SAT RADIO.

so how is this a 2 company market?
--
www.stopfcc.comI do not think the government needs to restrict free speech especially on a device that has an off knob.

See 8 replies to this post

major marco
Res Firma Mitescere Nescit
Premium
join:2003-02-13
Stepford, CA
said by Romney2012:

said by inteller:

this is Martin's way of saying he hasn't recieved his pay (off) check from XM and Sirius yet.
It is nothing of the sort. Letting a 2 company market shrink to 1 was never going to be approved.
Oh. You mean like AT&T + Bell South. Instead of two separate companies, now they can be one, giant telco with 65% of the market. Give me a break. Once a shill, always a shill. Martin just hasn't received his payoff yet from either satellite radio company.
--
The Toll

Log420

join:2003-10-21
New Castle, IN
*cough* ATT *cough*

FicmanS
Premium
join:2005-01-11
Brownsburg, IN
I suspect the same thing...

saber11
Check Six
Premium
join:2000-06-09
Clayton, OH

Martin sucks

Martin is the puppet of the NAB. If the NAB can keep this deal from going through, and force the two companies to remain seperate, then one or both of them will go bankrupt, leaving the pieces for one of the large broadcasters to scoop up (like clearchannel) at firesale prices.

The FCC is bought and paid for by the NAB. They allowed companies like Clearchannel to increase their percentage of penetration (how many stations they can own in a market), and anytime the NAB barks about satellite radio the FCC is all up on it. XM's repeater network, Sirius's non complying radios, and on and on.

If this deal doesn't go through, I'm afraid of what satellite radio will become. Just look at how Clearchannel raped the channels they control on XM.

I don't listen to commercial radio anymore. I have 3 XM Radios, and one Sirius radio on my account

See 6 replies to this post

Lex Luthor
Premium,Mod
join:2000-09-17
Hicksville, NY
kudos:3

Telecom Mergers

But all of these telecom mergers were good for the consumer?

bassthumpa
Premium
join:2000-12-26
Austin, TX

Re: Telecom Mergers

Apples vs. Oranges, once again. The telecom mergers were between companies that for the most part didn't compete in each other's area/domain.

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK

Re: Telecom Mergers

and so mergers where companies DON'T compete should be approved? WTF!?!?

bassthumpa
Premium
join:2000-12-26
Austin, TX

1 edit

Re: Telecom Mergers

said by inteller:

and so mergers where companies DON'T compete should be approved? WTF!?!?
I didn't say that. I simply said that comparing these mergers is apples vs. oranges. Don't put words in my mouth.
--
Myspace | Yahoo! 360° | Blogspot

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK
Reviews:
·Cingular Wireless

Re: Telecom Mergers

said by bassthumpa:

said by inteller:

and so mergers where companies DON'T compete should be approved? WTF!?!?
I didn't say that. I simply said that comparing these mergers is apples vs. oranges. Don't put words in my mouth.
said by bassthumpa:

Apples vs. Oranges, once again. The telecom mergers were between companies that for the most part didn't compete in each other's area/domain.
I didn't have to, you said they got to merge because they didn't compete. it could be argued that XM ad sirius don't compete. they are a duopoly because they sign exclusive agreements with various comapnies that exclude the other from their space. Like Ford is Sirius, but GM is XM.

bassthumpa
Premium
join:2000-12-26
Austin, TX

1 edit

Re: Telecom Mergers

said by inteller:

said by bassthumpa:

said by inteller:

and so mergers where companies DON'T compete should be approved? WTF!?!?
I didn't say that. I simply said that comparing these mergers is apples vs. oranges. Don't put words in my mouth.
said by bassthumpa:

Apples vs. Oranges, once again. The telecom mergers were between companies that for the most part didn't compete in each other's area/domain.
I didn't have to, you said they got to merge because they didn't compete. it could be argued that XM ad sirius don't compete. they are a duopoly because they sign exclusive agreements with various comapnies that exclude the other from their space. Like Ford is Sirius, but GM is XM.
Are you reading what you're quoting? Or are you using some sort of bizzaro world reading comprehension? I didn't say it was approved because of that... I said that it's a bad comparison to the XM/Sirius merger because of that.
--
Myspace | Yahoo! 360° | Blogspot
JerseyDevil
Premium
join:2006-11-06
New York, NY

Good News to Me

As an XM subscriber this is good news to me. I happen to like my XM and am not interested in what Sirius has to offer in the way of speciality programming and personally find Howard Stern annoying, granted he saved Sirius.

I fear if this merge was approved prices would go up or become ala-carte style making it more expensive to have what you want. There would also then be the need for the new hardware to get the dual signal.

I think XM is better, I am a bit biased but I am happy with what I get as far as programming and happen to like the equipment options they offer.

DaveDude
No Fear

join:1999-09-01
New Jersey
kudos:1
Reviews:
·Vonage
·ViaTalk

Pay for more commericals

XM has way too much commercials, I would rather have 2 tiers, lower tier $8 a month with commercials, or $12 a month without. All they have to do is remap, the stations.

XM pay $12 a month for commericals! and repetitive music

See 11 replies to this post

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Martin Probably in Pockets of Terrestrial Radio

Sirius and XM compete with terrestrial radio as well as each other, and terrestrial radio has an implicit advantage in that it is free. Terrestrial radio broadcasters want nothing more than to see Sirius and XM kill each other because in effect, Sirius and XM were both able to literally cherry-pick away the most monied listeners of terrestrial radio.

I've been a Sirius subscriber for 3 years now and my ears literally hurt when I have to listen to terrestrial radio. I cannot stand the same stations playing the same crap over and over again.

If you look at stock prices and revenue streams, it is clear that Sirius and XM need each other. They can focus more on staying in business as a combined company instead of borrowing money to destroy one another. We will all be better off if this merger goes through.
--
Only SHATNER is Kirk.

Nightfall
My Goal Is To Deny Yours
Premium,MVM
join:2001-08-03
Grand Rapids, MI
Reviews:
·Site5.com
·Comcast
·Callcentric

Re: Martin Probably in Pockets of Terrestrial Radio

said by pnh102:

Sirius and XM compete with terrestrial radio as well as each other, and terrestrial radio has an implicit advantage in that it is free. Terrestrial radio broadcasters want nothing more than to see Sirius and XM kill each other because in effect, Sirius and XM were both able to literally cherry-pick away the most monied listeners of terrestrial radio.

I've been a Sirius subscriber for 3 years now and my ears literally hurt when I have to listen to terrestrial radio. I cannot stand the same stations playing the same crap over and over again.

If you look at stock prices and revenue streams, it is clear that Sirius and XM need each other. They can focus more on staying in business as a combined company instead of borrowing money to destroy one another. We will all be better off if this merger goes through.
I am glad I am not the only one that feels this way. There are few certain things in life, but if this merger goes through you can bet that there will be benefits for both subscribers.

1. Price will stay the same for a while. You won't see a huge jump in your bill because it is still a competing technology with Ipods and other devices.

2. They won't shut your radios off. Why do some people think that they will force radio upgrades down the line? Those will come in time, but they won't be immediate.

3. More choice. I don't know how packages will be made up, but I can see benefits to having a merger. Would be nice to get the best of both worlds for free, or maybe even move to an ala carte system for people who are ultra cheap or want more.

The problem here is that you have a lot of people who are drumming the end of satellite radio or saying that the merger will bring high prices. Both of which aren't going to happen.
--
My Domain
Nightfall's Hockey and Life Journal

NowVOIP
In the beginning there was POTS

join:2006-03-05
Round Lake, IL

Welcome to the end

Having had both services, and now being wih Sirius. I can say having the best of both services would be great.

The reason martin is being such a PITA about this merger vs the telco mergers is simple at&t paid Martin off. XM & Sirius haven't.

In the end if this merger doesn't go through the NAB will get what it wants. The end of satelite radio, and then everyone wil be forced to listen to crappy AM/FM stations, and pay for a new HD Radio to listen to "even crappier content"

bbrlogue
Learning New Things Daily
Premium
join:2003-12-07
Alexandria, VA

satellite vs satellite got them where they are now

Another problem with XM and Sirius is they have been pitching themselves mostly against each other, instead of against FM, MP3, iPod, etc. that they are now saying are their real competition.

If they didn't spent gobs of money trying to outdo each other by wasting ads and signing exclusive contracts with big entertainment names and big sports, they would not be where they are today and would have better financial snapshots.
bigjimc

join:2003-04-21
Middleboro, MA

Ofcourse he doesn't like it

Clear Channel and Viacom are bigger companies. Who knows where Mr. Martin or any of his buddies will need a job in less than two years.

The merger between XM and Sirius is also going to lead to mobile video and that may cut into other big companies.

I'm tearing up my Republican National Party card... Again.
--
Just my 2 cents...Flame Lightly...

See 12 replies to this post

Corona
It's cool, I'm takin it back
Premium
join:2000-03-14
Dallas, TX
Reviews:
·AT&T U-Verse

Not quite apples to apples

AT&T and BellSouth, while both ILECS serviced different geographic areas. You couldn't live in Florida and get AT&T as your ILEC. Same goes for Texas and BellSouth.

Sirius and XM service much of the same geographic areas (at least in regards to the US)
--
-Corona

"No, make no mistake. It's not revenge he's after. It's a reckoning."

1000 Miles From Home CD RELEASE PARTY, 3/10/07, Dallas, Texas »1000milesfromhome.com for info!!

RideRed
Vista needs a popup blocker for Vista
Premium
join:2005-06-18
USA

Re: Not quite apples to apples

But they don't offer the same products that drive the sales of the radios. Sirius didn't go from 600,000 to 7 million in a year because of the same music XM has. It's because of exclusive content (like Stern).

If the companies merged, then satellite will be in a better position to compete with terrestial radio which is the real competition rather than having to outbid each other for this exclusive content.
--
There's only 10 types of people in this world. Those who understand binary, and those who don't. 

bassthumpa
Premium
join:2000-12-26
Austin, TX

2 edits

Re: Not quite apples to apples

said by RideRed:

But they don't offer the same products that drive the sales of the radios. Sirius didn't go from 600,000 to 7 million in a year because of the same music XM has. It's because of exclusive content (like Stern).
That's like saying that Cingular/AT&T isn't a straight up competitor with T-Mobile because Cingular has phones that are exclusive only to them. That's nonsense. They still offer the same type of PRODUCT on the same turf.

Not saying that the merger would be good or bad... but that's a flawed argument
--
Myspace | Yahoo! 360° | Blogspot

RideRed
Vista needs a popup blocker for Vista
Premium
join:2005-06-18
USA

2 edits

Re: Not quite apples to apples

They don't offer the same product. The product is the content, not the radio. It's content that drives sales and there is a reason why Sirius after being beat 2:1 by XM is now outselling XM 2:1. Exclusive content, not the music channels. I've subscribed to both and they don't have the same content by any measure.
--
There's only 10 types of people in this world. Those who understand binary, and those who don't. 

Corona
It's cool, I'm takin it back
Premium
join:2000-03-14
Dallas, TX
Reviews:
·AT&T U-Verse

Re: Not quite apples to apples

said by RideRed:

They don't offer the same product. The product is the content, not the radio. It's content that drives sales and there is a reason why Sirius after being beat 2:1 by XM is now outselling XM 2:1. Exclusive content, not the music channels. I've subscribed to both and they don't have the same content by any measure.
I would say you have a point when it comes to those that buy only aftermarket. However, those that get it as part of the vehicle they purchase are usually locked into one brand or the other based on what's available.
--
-Corona

"No, make no mistake. It's not revenge he's after. It's a reckoning."

1000 Miles From Home CD RELEASE PARTY, 3/10/07, Dallas, Texas »1000milesfromhome.com for info!!

RideRed
Vista needs a popup blocker for Vista
Premium
join:2005-06-18
USA

1 edit

Re: Not quite apples to apples

That is true for Honda or GM but other makes like I believe Ford, Toyota and Mercedes offer a choice of XM or Sirius and all have the choice of satellite radio and terrestrial radio which are the true competitors in the audio market. In a post merger world people wouldn't have to settle based on what deal the car maker struck. I have an Acura and am stuck with a windshield mounted Sirius radio because XM sucks.
--
There's only 10 types of people in this world. Those who understand binary, and those who don't. 

John97
Over The Hills And Far Away
Premium
join:2000-11-14
Southampton, PA

Not interested in seeing this merger fly...

I'm hoping the merger is not allowed to go through as well. Mel Karmazi is a good salesman as others have noted. But anyone who believes he isn't interested in generating more revenue by selling more commercials on satellite radio and/or raising fees needs their head examined. By merging the listernership of the two services, that's a larger collective audience for advertising. And that's where his interest in the listners ends. Mr. Karmazi is no friend of the satellite radio listener.
--
So put me on a highway
And show me a sign
And take it to the limit one more time

jgkolt
Premium
join:2004-02-21
Lakewood, OH

commercials on satrad

Has everyone forgotten that the main promo satrad had was no commercials? What has happened now with that? Let' s look at it if there was no alternative. More ads since they have you locked in. This can also be said of M$ windows but there is very small competition.
--
www.LakeSemaJ.com

John97
Over The Hills And Far Away
Premium
join:2000-11-14
Southampton, PA

Re: commercials on satrad

There are no commercials on the music channels. The talk/news channels have plenty. But I am sure it's not enough for Mel Karmazi.
jkb246

join:2000-03-18
Indianapolis, IN

At the end of the day Radio would rather them both go

out of business. That could be the idea. Just let them keep spending into the toilet and then who comes out of the blue to rescue them???? Clear Channel or Viacom, etc.. As someone said there will always at least be 1 company because people are willing to pay for something that is available for free. What's going to happen is that they will fill the rest of the channels with matching ads to match whats on the radio. Take commercial free and cut that in half and still charge. Hey thats what we get with cable and we have no problem paying for it. I'm watching commercials now on Crappyvision

DownTheShore
Tag, you're it
Premium
join:2003-12-02
Beautiful NJ
kudos:11

I am tired...

...of these government bigwigs and their apparent sweetheart votes/decisions, made to ensure their post-government occupations. The inconsistencies in Kevin Martin's attitude, especially regarding those decisions that should be made for the (whole) public good, are very discouraging, and so very obvious.

As a former federal employee, I know the emphasis that was placed upon the separation of public good from private gain, down at my lower level of government. The double standard that exists in the government is striking - the upper levels get expense-paid junkets, while my level had to ask management before accepting a box of Dunkin' Donuts (they happened to be down the street from the office) offered by a satisfied claimant, and even that, if accepted, had to go into the breakroom for all to share (if one trusted it, of course ).

As an XM subscriber, I happen to be opposed to the merger, because I think that ultimately we will lose more than we will gain. While pricing might remain stable initially, I foresee it breaking down into tier servicing, just like cable.
--
Life is simply one damned thing after another.
hoyleysox

join:2003-11-07
Long Beach, CA

I like the merger

I haven't subscribed because I can't decide which captive content to choose from. I want to listen to Howard Stern, G Unit Radio and sports, but to do so I have to get both XM ad Sirius. If the merger happens, it will add a lot of value to me and I will subscribe. Of course if they raise prices I will not.

John_W
Premium
join:2000-04-25
Worcester, MA

Re: I like the merger

That is one of the pluses of the merger. Nascar, MLB, NHL, NFL, Stern, O&A, ect... all available from one company.

But I can easily see a tiered rate system just like the cable companies. You have to buy a season pass for each sport you want to receive, another monthly fee for Stern(I personally feel that one is a given) or O&A, another fee for the TV simulcasts. But the music channels all stay the same for the $13/mo fee.

Just my opinion. There is a finite amount that most of us are willing to pay for radio. We will wait and see what happens.
--
Chef says to put a cucumber down my pants for good luck.
mschwerin

join:2004-06-21
Columbiaville, MI

Re: I like the merger

I am a Sirius subscriber, and only waited as long as I did to get my radio to see where Stern ended up. I really don't care about the merger as long as Clear Channel is out of the picture, and I can get Stern and the comedy channels. The music I don't think will matter much the euivalent channels play the same stuff. Though I have heard from a lot of people XM has too many commercials on the music channels, and not just the CC ones. The fact is there are more and more radios that can go either company, it is just a matter of the antenna you use. I would rather see them merge then one or the other disappear. Terrstrial radio sucks and has for a long time. Only thing I have listened to on it for the last 10 yrs before I got my satrad, was Stern and a coupls of local talk shows.

BTW has everyone forgotten that Dish Network and DirecTv are not the same company and that was never fought by anyone as hard as this is? It's all about the real monopolies trying to keep competition away. If you pick any town, I bet ALL radio stations in that town are owned by 3 or less different companies. Clear Channel, Viacom, Citadel and a few others that slip my mind right now. HD Radio is the biggest joke of the 21st century. Go ahead buy it and you can your 38 minutes of commercials every hour even more clear then they were before, LOL.

Mike
gower23528

join:2005-06-08
Weston, WV

Re: I like the merger

XM has no commercials on its non CC owned **music** channels...

Corona
It's cool, I'm takin it back
Premium
join:2000-03-14
Dallas, TX
Reviews:
·AT&T U-Verse
said by John_W:

That is one of the pluses of the merger. ...Stern, O&A, ect... all available from one company.
By the way, don't assume that Good Old Mel will allow O&A to continue to do a show like they do now.

Mel was the one that hobbled O&A on terrestrial radio years ago. He's the one that told them they weren't allowed to talk about stern, at stern's request. Then they both publicly denied it until years later. I can totally see Mel coming in and driving O&A away, since he loves Stern so much.
--
-Corona

"No, make no mistake. It's not revenge he's after. It's a reckoning."

1000 Miles From Home CD RELEASE PARTY, 3/10/07, Dallas, Texas »1000milesfromhome.com for info!!

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Reviews:
·AT&T DSL Service

Martin loves Telco and Cable Monopolies

Interesting to note that

Telco buying out another Telco: Two Thumbs up!
Cable buying out another Cable: Two Thumbs up!

Echostar and DirecTV merging: Hell no!
Now XM and Sirius merging: Hell no!

It seems this guy clearly knows which side of his bread the butter is on. (Hint: It's not ours.)
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!)
Lysis

join:2005-03-30
Brooklyn, NY

no reason for Sirius/Xm to raise prices post merger

they compete with free radio
if they raise prices too much no one will want their product and they will just use free radio, ipods, psps, portable dvd players, cell phones, and other things in their cars/homes to keep themselves entertained. Surprise someone in the fcc isn't impartial...

brooklynman4

join:2004-09-07
Brooklyn, NY

Re: no reason for Sirius/Xm to raise prices post merger

How can u compete with something that is free ??

Shrapnel64
Premium
join:2001-01-24
Hayes, VA

Re: no reason for Sirius/Xm to raise prices post merger

My guess is that he is making a reference to free radio (AM/FM).

I wouldn't say that it is competing...but you have to market enough so that people are thinking along the same way the marketers are, and that is that Satellite Radio is the best radio on radio (Sirius' Moto).

DownTheShore
Tag, you're it
Premium
join:2003-12-02
Beautiful NJ
kudos:11
said by Lysis:

they compete with free radio
if they raise prices too much no one will want their product and they will just use free radio, ipods, psps, portable dvd players, cell phones, and other things in their cars/homes to keep themselves entertained. Surprise someone in the fcc isn't impartial...
People choose their product because they don't want to listen to free radio, whether it's due to the high commercial load, the lack of musical variety, etc. I chose it because I wanted it for my car. I don't have a multi-CD changer in my car, nor an iPod or a portable DVD player to play music through, nor do I want to listen to music there through a tiny cell phone speaker. I am a captive audience, and I'm sure there are still many like me. If they raise their prices, and I still want the service, I will have to pay their price. There is no third mobile option that can offer pricing and service competition if XM & Sirius merge.
--
Life is simply one damned thing after another.

Shrapnel64
Premium
join:2001-01-24
Hayes, VA

Lifetime subscription?

Well, it may be too early to speculate...but I certainly hope that by me purchasing a lifetime subscription, that I didn't screw up.

My guess is that they can combine the two services and push out a few extra channels (XM just dropped NASCAR...surprise there)...without having the need for people to buy new equipment.

I am a lifetime Sirius subscriber, and I must say, I am more impressed with the channels and diversity that Sirius has than I was with XM. The only upside that XM has is their online service; there isn't (at least at the time I was subscribed) a "Standard" and "Premium" service (or fee) for the Online Radio service.

jtudor
Xm 60's On 6 Freak
Premium,MVM
join:2002-12-07
Morganton, NC

Re: Lifetime subscription?

said by Shrapnel64:

My guess is that they can combine the two services and push out a few extra channels (XM just dropped NASCAR...surprise there)...without having the need for people to buy new equipment.
FYI, XM didn't drop NASCAR. Sirius offered a contract to NASCAR that was probably way too high for it's value, and as I read, XM was not given a chance to offer a higher bid. They probably would not have bid higher anyway if what I read is true.

Either way, it was not XM's sole decision to give up NASCAR, they were outbid in one way or another for the contract by Sirius.

As to the lifetime subscription, I read somewhere that it is tied to one radio, and when you replace that radio you have to get a new subscription.
--
Best of luck

"Do, or Do not, there is no try!" Yoda


John97
Over The Hills And Far Away
Premium
join:2000-11-14
Southampton, PA

Re: Lifetime subscription?

Sirius has a bad habit of paying too much for content. There are several glaring examples of this. XM is guilty as well, but on a much smaller scale.
netdogg3

join:2003-02-27
Staten Island, NY

Satellite Merger...

Please tell me that the people that are against the merger are Satellite radio subscribers.I HAD Sirius I now have XM.I am also against the merger so I feel satellite radio subscribers are the ONLY ones who should have an opinion.

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