This week, another group added their support to a merger between the two satellite radio companies: XM Satellite Radio Holdings (NASDAQ: XMSR)'s and Sirius Satellite Radio Inc. (NASDAQ: SIRI). A quintet of organizations representing rural Americans presented a letter to Federal Communications Commission (FCC) head Jonathan Adelstein. An excerpt from the letter read: "This merger is clearly in the best interest of rural consumers because it would allow a combined company to expand upon its existing services with increased efficiencies and at the same time provide rural listeners with more diverse programming and lower pricing ... [the merger] will make satellite radio a more viable option for rural consumers ... even in the most remote areas."
Indeed, a combination of the two companies could bring all 4 major sports, Oprah and Stern, and John Cougar Mellencamp and Bruce Springsteen tunes, virtually commercial free, to households distanced from terrestrial broadcast towers.
Originally announced on February 19, 2007, this partnership continues to be closely scrutinized by the FCC as well as the National Association of Broadcasters (NAB). The latter organization effectively represents the combined company's would-be competition, weakening the argument that the satellite-radio merger stifles competition. But I digress before I slip into a monopoly wormhole.
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
The week in preview: New quarter earnings kick-off
Comfort Zone Investing: Keep your recovery expectations real
Will Americans have to slim down to fit into their cars?
Reader Comments (Page 1 of 1)
10-24-2007 @ 9:24PM
Suzanne said...
I only know that two friends got XM iwith their new cars...and they LOVE it.
10-24-2007 @ 11:41PM
Joesesto said...
XM has been great for us and I can't knock Sirius, except I want no part of paying for Howard Stern.
XM is in 2 cars and my office. Many XM stations are included in DirecTV's schedule and AOL carries a number of XM stations. So XM is literally everywhere for us.
The last time I compared the 2 carriers' monthly fees... XM was considerably less than Siruis as each additional XM receiver is only $7 and the fee for the first receiver is reduced if you pay in full for a year.
I will only buy cars that integrate XM in the Nav display...and only a few car makers allow your choice of either.
10-25-2007 @ 7:35AM
Joey Boots said...
There is nothing like hearing HOWARD STERN and The Crew doing Their thing on Satellite Radio! I hope the merger goes thru so more can enjoy THE SHOW as well.
10-25-2007 @ 3:23PM
Charlie said...
To joesesto.
I am a long time sirius owner of both equipment and stock. You do know that sirius charges $6.99 a month for additional units ( I have 3 additional units ) and also gives you a free month if you pay in advance as I do. 12 months for the price of 11 months. Please do your homework.
10-26-2007 @ 1:36PM
Jeff said...
yea I really hope they form a monopoly on satellite radio so I can get better pricing!
10-26-2007 @ 11:52PM
Brian Jackson said...
I love Sirius radio and wholeheartedly support the merger. It can only mean good things for XM and SIRIUS consumers. We can have the best of both worlds and the two companies will be able to supply its customers the quality programming. Everyone who listens to satellite radio knows this is the best thing that could happen for all satellite listeners. That is exactly what the terrestrial radio owner’s fear!!!!!!!!! BRING ON THE MERGER!!!!!!