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XM/Sirus merger possibility. Now what?

Discussion in 'Gen 2 Prius Audio and Electronics' started by rapidj, Jul 23, 2007.

  1. rapidj

    rapidj New Member

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    I was very close to ordering a Sirius integrated radio for my 07 Prius, even considering installing myself. With today's announcement of details of the merger, if approved, including the fact that consumers will have to purchase a new unit if they get the package that includes both products. it has me rethinking an probably putting on hold any purchase. Any thoughts on how soo after a merger is finalized before we actually begin to see units that will accommodate both signals? See story excerpts below;

    "The pricing plans announced Monday range from $6.99 per month for 50 channels offered by one service to $16.99 per month where customers would keep their existing service, plus “choose from the best†of channels offered by the other service.
    That means a customer could subscribe to both the Major League Baseball channel on XM and the National Football League channel offered by Sirius, on the same radio.
    Currently, the price of a monthly subscription for both companies is $12.95 and there is no channel choice, or “a la carte†option.
    A combination of Sirius and XM, which broadcast to a combined 14 million subscribers, faces steep regulatory challenges, however. When the companies received their licenses from the FCC to begin offering subscription radio service via satellite, they agreed not to merge.
    The companies must prove to the Justice Department that the deal is not anticompetitive. They must also prove to the FCC that the acquisition would be in the best interest of the public, which owns the airwaves the two companies use to deliver their signals."

    "Both the a la carte packages would require the purchase of a new radio, the companies said.
    Other packages would include family friendly lineups priced at $11.95 and $14.95 and music and news talk packages, both for $9.99. Customers happy with their existing service would still pay $12.95 per month.
    Consumer groups have opposed the deal. "
     
    #1 rapidj, Jul 23, 2007
  2. Rest

    Rest Active Member

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    As usual the consumer will end up getting the shaft on this deal. We can only hope that consumers will cancel their subsriptions and force the company to provide a better pricing plan. Consumers have the power to control pricing.
     
    #2 Rest, Jul 24, 2007
  3. Vagabond

    Vagabond Active Member

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    IF the merger happens (which I highly, highly doubt) you're not going to see new equipment for at least 8 months to a year. Integrated versions won't appear for a year to 2 years. It's profoundly harder to develop integration kits.

    Buy with confidence.
     
    #3 Vagabond, Jul 24, 2007
  4. Swampthing

    Swampthing Junior Member

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    <div class='quotetop'>QUOTE(Vagabond @ Jul 24 2007, 02:46 AM) [snapback]484028[/snapback]</div>
    Um... I wouldn't be too sure about that one. When the FCC approved two separate satellite radio companies, one of the stipulations was that they both needed to work on a joint receiver for both services. But there is a loophole; they weren't required to actually market the radio, only design it. In fact, Sirius doesn't take the agreement too um.... seriously.

    BUT if the FCC doesn't approve the Sirius-XM merger, don't be surprised if they choose to clarify and enforce this regulation for both companies to produce interoperable radio equipment very soon.

    http://www.orbitcast.com/archives/sirius-x...perability.html
     
    #4 Swampthing, Jul 24, 2007
  5. Swanny1172

    Swanny1172 New Member

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    Most industry analysts are pegging the odds of the FCC approving the merger at around 35%, so I wouldn't hold your breath. If the merger is not approved, then one of the two will end up going bankrupt. Neither company is making money and one of the biggest reasons is that they are spending so much money on advertising.

    Just looking at history, things don't look very good for the merger. In 2002, the Justice Department blocked EchoStar's (Dish Network) bid to acquire GM Hughes Electronics (DirecTV) saying that the number of competitors in rural markets would drop to two from one.

    Even if the merger occurs, it is going to be business as usual for quite awhile. Both companies broadcast from satellites using the 2.3 Ghz S band, but the similarities stop there. Using different codecs, different encryption routines and different modulation techniques. Each receiver is unique to its respective provider. It would be impossible to retrofit every single receiver with a chip to decode both, so a transition period of an inordinate length of time would be required. Sure, they can produce new dual-service receivers, but what about their current (paying) subscribers? They would need to be maintained... at a cost.
     
    #5 Swanny1172, Jul 24, 2007
  6. JimboK

    JimboK One owner, low mileage

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    <div class='quotetop'>QUOTE(Kory HAnsen @ Jul 23 2007, 08:41 PM) [snapback]483852[/snapback]</div>
    Please provide a link for the original article.
     
    #6 JimboK, Jul 24, 2007
  7. KTPhil

    KTPhil Active Member

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    Howard Stern at Sirius has been advocating the merger, and claiming that no new radio would be needed. Sounds like he is spreading misinformation.
     
    #7 KTPhil, Jul 27, 2007
  8. skruse

    skruse Senior Member

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    Lifetime subscription - I paid the lifetime fee for Sirius so there is no monthly fee. I installed the unit myself. No one has the time to actively listen to over 100 channels. I don't miss XM. I am very happy with Sirius.
     
    #8 skruse, Jul 27, 2007
  9. Vagabond

    Vagabond Active Member

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    <div class='quotetop'>QUOTE(KTPhil @ Jul 27 2007, 02:26 PM) [snapback]486348[/snapback]</div>
    He's just doing his job. Sirius pays him, & Sirius wants the merger to happen.
     
    #9 Vagabond, Jul 27, 2007
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