XM - Sirius update …
April 20, 2008As I’ve posted before, I truly can’t wait for this merger to happen. The DOJ has approved it, so more than likely this will happen. Sen. Byron Dorgan of North Dakota and a senior member the Senate Commerce Committee is campaigning against the merger. In his letter to the FCC he states that this merger would be “contrary to public interest” and would result in higher prices to the consumer. DUH! Are either company in the black right now? While I don’t think that the merger of two failing companies will make a successful company, the synergies will make the likelihood that they would survive as one greater than if they continued to operate as two. In addition, Sirius Chairman, Mel Karmazin has mentioned that the new company would offer an al la cart menu, allowing customers to pay for the channels they listen to and get a refund for those they don’t. So, while the $12.95 monthly fee will eventually go up, most customers will pony up more, but for a much more superior product. It’s called Capitalism. If those customers don’t see the value of paying, say … $19.95 a month for the new product, then they can always get an Ipod or worse yet, listen to commercial radio. Interesting how most of these decisions are being made by senators who haven’t listened to radio since before FM.
Posted by Seth
