I’ve subscribed to XM Satellite Radio since April 2006. Previously, I was a subscriber of Sirius Satellite Radio for about two years. I remember the hype leading up to the Howard Stern launch. I’m a fan of the Satellite radio, and like XM better.
Now comes the proposed merger with rival Sirius Satellite Radio.
February 19, 2007
To: SIRIUS Subscribers
Today is a very exciting day for SIRIUS customers. As you may have heard, SIRIUS Satellite Radio and XM Satellite Radio are merging to form the nation’s premier audio entertainment provider.
This combination of our two offerings will benefit you – our loyal listeners. As a single company, we’ll provide superior programming to you every day with the best of both SIRIUS and XM. Currently, XM and SIRIUS broadcast a wide range of commercial-free music channels, exclusive sports coverage, news, talk, and entertainment programming. Howard Stern. Oprah and Friends. The NFL. MLB. NBA. ESPN. CNBC. Fox News. Additionally, the combined company will be able to improve existing services such as real-time traffic information and rear-seat video as well as introduce new ones.
After shareholder and regulatory approvals, we anticipate that the combination will be finalized by the end of 2007. Until then, both companies will continue to operate independently. We will continue to provide you with the uninterrupted service – as well as the outstanding customer support – that you have come to expect and enjoy from SIRIUS. We do not anticipate any changes in your service during the merger process, however, please call our customer care team on 1- 888-539-7474 should you have any questions.
We look forward to the many benefits this combination will offer and continuing to make your listening experience an enjoyable one – offering more of the Very Best Radio on Radio.
Mel Karmazin, CEO
The business reasons as to why these two companies might want to merge are: Cost savings, efficiencies of scale, debt repayment, more muscle with music companies, sharing the cost of rolling out new technologies, etc., but I don’t see why its good for me?
Personally, I care about music (with out advertisements), catching CNN on the commute and an occasional sporting event. That’s why I subscribe to XM.
Being a previous subscriber of Sirius it has a lot that I don’t want: Howard Stern, Martha Stewart, and Tony Hawk’s Bucka-Bucka-Hucka-Jam-Bamma Xtreme Show. I’m certainly not interested in subscriber fee increases to get Stern!
I’m concerned that, as an XM subscriber, I’ll lose channels that I like and get channels I don’t. The satellite spectrum is limited and they won’t suddenly put up 300 channels.
I think that until the proposed merger can promise something more (new gadgets, more functionality), rather than something less (discontinued channels), we subscribers should be very, very skeptical.