XM - Sirius update …
As 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.
April 20, 2008 at 8:51 pm
I am so frustrated with the lack of action by the FCC. This should have been a done deal a year ago! …and now that I can see the future, a year later - now that the iPhone is out, which would have been considered a good business move - a year ago, it is more than obvious that this deal should go through. It makes no sense, and it is absurd to think that we wouldn’t want to pay $20.00, 40, 60 per/month for this service, After All… we pay 125.00/month for cable, 50/month for high speed internet, 40 bucks for a bottle of wine (You do drink wine Sen. Kerry? right?) You do pay for gas (From Exxon/Mobile) right? What’s that?? You pay 80.00/week for gas!!! and you guys are saying that we can’t let these companies merge because it may get to expensive in the future?? and we might have to pay 19.95, or higher?? Compare that to my 6.00 coffee habit that I can’t seem to break… and you are worried about the consumer?? come ON!? This is outrageous, and should be illegal. These companies are being falsly held in limbo (FCC Sabatoge). Nobody is buying devices and subscriptions are down because of 2 reason… 1) The people don’t want to buy 2 devices - one for baseball, one for football - before they can be heard on one device. Sales have halted - and it is killing these companies. (Not to mention the legal fees) 2) Our economy. The consumer is not buying. Get with it. Write to you local leaders and let them know that, if they speak for the people, then speak louder in support for this merger. THE PEOPLE WANT IT - XM/Sirius need your help. Please help pass the merger and let the Senate work on larger issues, like gas prices! Afterall, I don’t see XM/Sirius ever charging 80.00/week.