XM + Sirius = ???
They said it couldn't be done. And frankly, until it passes the DOJ's antitrust review, maybe "they" were (and are still) right... But for now, XM and Sirius have announced their intention to merge.
Forgive me if I don't sound too enthusiastic about this. I'm an XM subscriber and I like my existing service just fine, thank you very much. Why do I get the feeling the new company will charge a higher monthly rate, just because I'll now have the opportunity to listen to Howard Stern? Geez, that's exactly why I didn't buy a Sirius device to begin with!!!
It will be interesting to see if this one passes federal review. Both companies have recklessly thrown money around in an attempt to one-up the other and secure more new subscribers. At least that part of the business model would likely change if they become one...I hope...
I am potentially less than thrilled with this news. First, 99.9% of all mergers/acquisitions fail in some form or another; "synergies" are never realized, and something is always lost in the translation. Second, how will the technical details settle out -- they use two different satellite systems, after all. (And will my XM radio become obsolete at some time?) Finally, and most important to me, will the elimination of "duplicate" programming mean the elimination of the well-programmed XM channels that love, such as Soul Street and The Village? Sirius' counterparts are bland hit-oriented playlists, not at all like the unique and genuinely interesting XM channels. This could end up forcing me to install an iPod jack in my car...
Posted by: Michael Miller | February 20, 2007 at 10:16 AM
I do think the specter of higher monthly service fees and obsolete radios is concerning.
Posted by: Doug | February 20, 2007 at 10:22 AM
Here's an excerpt from an e-mail message XM sent to all subscribers earlier today:
"...the new company will seek to ensure that in the future, you will be able to access both companies' programming. And, once we are fully integrated, those of you who have factory-installed satellite radio will no longer be limited to the programming provided by the exclusive satellite radio service chosen by their car manufacturer."
The first point is nice and I'm sure it's something they'll make a big deal out of to get this past the FCC. What isn't stated though is what effect this will have on subscription prices. I'd like to have the option of adding some Sirius channels to my XM list, but not if I have to pay any more than my current monthly rate! A cafeteria plan would be nice too, where I could pick and choose all I want from both...but you can bet the cost of that would far exceed the ~$13/month I currently pay for XM!
Posted by: Joe Wikert | February 20, 2007 at 12:09 PM
I'm interested to see how they put both XM and Sirius programming on a single satellite with limited bandwidth. Right now, golden-eared XM subscribers (like me) are complaining about too many channels taking up too much bandwidth, resulting in lower audio quality than what XM had initially. How can you add Sirius channels to the mix without further adversely affecting sound quality? I still say they'll eliminate the dupes -- the similar channels shared between the services. That's what "synergy" and cost efficiencies are all about, right?
Posted by: Michael Miller | February 21, 2007 at 09:31 AM
I figured they'd need to either remove some of the rarely listened to channels or force you to buy a new device that picks up both signals. In the 8 months or so that I've owned my XM device I can honestly say I've probably tried no more than 30 of the 170+ channels and that I generally only dial into 3-5 different ones over the course of a given week. Maybe I'm in the minority though. My point is that there are probably a lot of channels that almost *nobody* listens to, so why not drop them and add a few of the others from Sirius? But if you're going to charge more, no way...I'm out.
Posted by: Joe Wikert | February 21, 2007 at 12:46 PM
I have had XM for over two years and decided to try Sirius, what a mistake. XM for the most part has no talk on its stations, at Sirius they can't shutup. I would rather listen to MP3 than pay for the same thing I can get for free over the air. I don't believe the merger will see the light of day, but if it does hopefully Sirius wont mess with my XM music. And Joe Wikert, I as you, only listen to about five stations. Danny King.
Posted by: Danny King | April 07, 2007 at 03:31 AM