Tuesday, July 29, 2008

Satellite Radio Merger Approved

The proposed merger between Sirius and XM, the two competing satellite radio services, has been approved by the Federal Communications Commission. Over 17 months ago, when the proposed merger was first proposed, it was predicted that the FCC would never approve this merger because of its obvious monopoly considerations. But, the two companies made several proposals that made the merger more palatable to government officials. The vote was 3-2 and was split along party lines with the Democrats in opposition.

Among the concessions made by the two companies was a 3 year price freeze, the creation of over 20 new channels dedicated to non-commercial and minority interests and a la carte pricing that will happen within three months of the final merger.

The two companies are also proposing a 50 channel a la carte package that will sell for $6.95 a month. This would work for me, and frankly, I would be pressed to find that many channels that have music, news, and sports that I would find interesting. But there are enough really good channels that make this a very viable option for me.

The a la carte packages will require a new type of receiver that is not yet on the market, so if these packages sound interesting to you, hold off for little while

The merger was rigorously opposed by the National Association of Broadcasters who fear it will hurt terrestrial radio stations, both AM and FM. The truth is that these stations are already in serious trouble. They have been hurt by the Internet, iPod-type devices, and the fact that most independent radio stations have been bought out by major broadcasting giants like Clear Channel and others. Their programming has become just plain boring and not worth listening to. Just turn on your radio and you will see what I mean. There are far more interesting radio stations on the Net and on both Sirius and XM.

As part of of my satellite TV packages, I have experienced both XM and Sirius. There is no doubt in my mind that XM offers a superior product, less talk and more music and information. Also, audiophile journalists report that XM's sound quality is definitely superior and I agree.

Stay tuned for more info.

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