Thursday, December 13, 2007

Siriusly


As a Sirius and former XM subscriber, I have been watching from the sidelines as the Sirius-XM merger has seemingly progressed without question, wondering when this would happen.

Finally, eyebrows are raised as the only two satellite radio carriers look to merge, and both are quite young as companies.

I listen to Sirius in the call almost exclusively; much more than I thought I would when I leased a car that came with a year's free service.

As a free market proponent, I would tend to believe that if the merger is beneficial, the market and the companies' shareholders could and should be able to determine the best scenario: merge or not. Regulators should stay out of the way

On the other hand, does it make sense for the whole satellite radio industry to consolidate to one provider? Is this really a monopoly? Is the argument that HD radio will provide adequate competition?

Both companies seem to be growing at a fair pace (then again so is Caribou, but they can't make money in a hot market either) with XM having a slight edge in subscribership. It will be interesting to see if regulators will let this one fly.

1 comment:

Aaron APC said...

if the merger results in lower service fees ($6.99/mo!!!!), I'm all for it.

I put this link on my blog several months ago for more info: http://gizmodo.com/gadgets/promising-the-world/xm-and-sirius-promise-cheaper-a-la-carte-offerings-if-merger-deal-is-approved-281388.php