XM, Sirius Merger Will Benefit Listeners: Study
By Amy Gilroy -- TWICE, 6/14/2007
Washington — Thomas Hazlett, the former Chief Economist of the Federal Communications Commission (FCC) released a study commissioned by XM and Sirius that found a merger would benefit consumers.
The study was submitted today to the FCC, said XM and Sirius.
The study noted that the $3 billion to $7 billion that investment analysts predict will be saved by a merger, “will permit more aggressive investment in satellite systems and products and prompt competitive responses from terrestrial broadcasters and other rivals.”
The study claimed “By any measure, satellite radio is dwarfed by terrestrial radio,” noting that terrestrial radio had revenues of over $21 billion in sales in 2006 compared to $1.6 billion for satellite radio.” In market value, terrestrial radio weighs in at $82 billion compared to $9 billion for XM and Sirius combined.
The merger would also result in a wider array of popular programming to subscribers and in lower prices for the service and receivers, the study said.
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I''m not sure where you came up with those figures. The merger will make it possible to get both services for, yes, a lower price. It is currently cost prohibitive and unreasonable to subscribe to both Sirius and XM. I''m pretty sure almost everyone who actually subscribes to the satellite radio is in favor of the merger. The only people opposed seem to be people in the terrestrial radio industry.
Dan Edmonson - 2007-16-6 11:35:00 EDT -
I''m not sure where you came up with those figures. The merger will make it possible to get both services for, yes, a lower price. It is currently cost prohibitive and unreasonable to subscribe to both Sirius and XM. I''m pretty sure almost everyone who actually subscribes to the satellite radio is in favor of the merger. The only people opposed seem to be people in the terrestrial radio industry.
Dan Edmonson - 2007-16-6 11:34:00 EDT -
Only a complete MORON would think that removing competition will lead to lower prices. This is an excuse for a monopoly. Are they going to give back the bandwidth so someone else can offer service? No way. They have already said that they will charge additional money - another $12 - $20 on top of what you are currently paying - to receive both XM and Sirius. How does that save the consumer? What a scam.
Tom Move - 2007-15-6 13:04:00 EDT -
I find it interesting that there is no mention of what the increase or decreas in channels will have on sound quality due to increased/decreased bandwidth. While "conventional" terrestrial based radio continues to be a monster, the terestrrial based guys also have HD Radio as an option as well. In the US, most major Major markets according to iBiquity have no fewer than 25 HD radio options available at not cost. How will this impact satelite radio.
Ro K - 2007-15-6 08:16:00 EDT
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