In case you haven't heard, the two consumer satellite radio companies, XM and Sirius, have agreed to merge sometime this year. I say "sometime", because the merger deal, worth some $13 billion, must be first approved by the Federal Communications Commission...and that august group has already announced that approval will not come easy. In fact, they say now that an approval is highly unlikely.
I, and many real experts, believe that a merger is the only way that satellite radio will survive. Both companies are losing millions of dollars each year and have yet to turn a profit. Both continue to try and outdo the other, driving up their programming costs. In fact, both of them are so far in debt that even a merger may not guarantee survival.
And merger approval is only one hurdle that the two companies now face. This week, Austin, Texas-based company Keystone Autonics filed a patent infringement suit against both Sirius and XM, claiming that technology used by both companies is being taken directly from patents that belong to Keystone Autonics. The patent in question was awarded to George Hindman of Keystone Autonics just back in January of this year. Look for this case to definitely go to court.
But wait...there's more. Both Sirius and XM find themselves in the crosshairs of the Recording Industry Association of America (RIAA). The RIAA is lobbying for support of a bill that would restrict users from being able to locally store and record songs aired over satellite radio. XM voiced its opinion against the RIAA and said that such restrictions would harm consumers' recording rights. I swear, the RIAA is becoming so obnoxious that I fully expect that someday when we are walking down the street humming our favorite tune that an RIAA lawyer will jump out of the bushes and slap us with a lawsuit.
On a different, but related subject, I have now had the opportunity to sample both Sirius and XM. We had XM in our home as part of our subscription to Direct TV. But recently, we switched over to Dish TV, which carries Sirius as part of its lineup. Now, while I haven't sampled all the various types of music carried by both companies (no, I am not going to compare their rap and hip-hop channels) I will say unequivocally that if I went out today to buy a satellite system for my car, it would be XM.
To me, the differences come down to the programming of the music on the channels I listen to the most. Both providers are very similar in the channels they offer. For instance, each has three classical channels, three jazz channels, one New Age channel and a huge variety of pop and rock channels. I just like the music chosen to be played by XM much more than Sirius. To me, the difference is quite noticeable. I hope if they merge, that the XM programming people stay. Again, these are my opinions and I am sure you could probably find a host of people who disagree with me.
I hope in all honesty that satellite radio does survive. They offer a terrific alternative to the radio stations that infect our airwaves today (except for Public Radio). Predigested, overproduced, and uninspired tunes play endlessly on bland Top 40 radio stations across the U.S., whether it be rock, country, or any other genre. And forget about jazz and classical...it almost does not even exist. Satellite radio fills a real need for those of us that love music at its best.
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