Monday, March 24, 2008

XM & Sirius allowed to merge

The FCC has allowed XM & Serius to merge. I fail to show how this is in the public interest to effectively make one satelitte radio service.

The could be the slow death of satelite radio. As long as there was competition for listeners, it might have become an effective media.

It's sad to see what I thought was an excellent service from XM turn into the Howard Stern media. Or the Ophra media.

1 comment:

Anonymous said...

AJ, let me differ with you on your point - I like the idea of the merger, and I am NOT a Stern or Oprah fan. I don't like having to pay for MANY channels that I don't care at all about, but I wouldn't mind paying a reduced fee to choose the channels I like and leave the other ones behind. Heck, even Sirius and XM might find out that some of their channels have almost no listeners at all, allowing them to take down channels that have limited or no broad appeal, to open up transponder space for other services.

When doing the calculus on the merger, you also need to factor in the impact of portable MP3 players, podcasts, network streaming, traditional OTA AM and FM, CD players, etc etc. They are all influencers in an increasingly diluted market competition for "ears".

Listeners win when we get good quality, diverse programming at lower cost.

Here's a different angle to explore - why not make a small few (not all) Sirius and XM channels "free to air" (no subscription required), supported by adverts, just like we do now over the commercial airwaves, and ask listeners who want Premium commercial-free entertainment to subscribe? Lower subscription prices combined with the ability to choose which channels you want to subscribe to (remember my "no Stern comment?) will choose what they want.

I can hear the adverts now - "If you like us now, subscribe to our commercial free service, for more channel selection choice and uninterrupted entertainment 24 hours a day".

Selection + premium services = win, win.

Dave M//