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Thread: maybe we wont need a sirius pc solution....

  1. #1
    SWC
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    maybe we wont need a sirius pc solution....

    http://www.foxnews.com/story/0,2933,145455,00.html

    Looks interesting. It would be nice. I like XM better but sirius has a couple channels that have peaked my interest.

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    Variable Bitrate Osiris's Avatar
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    Would that mean twice as much content or twice as much price!?

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    twice as much price

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    Newbie TaZMaNiaK's Avatar
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    I don't see this happening anywhere in the forseeable future. At this point, Sirius has nothing that XM wants. What they really need is more satellite bandwidth, and merging the two companies wouldn't give Sirius's bandwidth to XM, because it must remain open and available to any possible competition. There's also issues of bad blood between Opie & Anthony and Howard Stern & Mel Karmazin. O&A won't work for Mel,and Howard and O&A hate each other's guts and will never work for the same company again (due to a gag order placed on O&A by Mel on order from Howard when both worked for Viacom).

    The other big thing is, XM wants to stay in business. They have finally broke even and should turn their first annual profit this year. Sirius is falling deeper and deeper into debt, and IMHO, Howard's half billion dollar contract is the final nail in their coffin. He is singlehandedly going to kill Sirius. XM is NOT going to make the mistake of taking on that contract or having to pay any part of it in any way. They're going to sit back and watch Sirius drown, because Sirius already costs $3 per month more than XM, and that is going to go up, reportedly to $6, in order to try to offset the Howard contract. That is going to cost them subs. They have less than 1/4 of the subscribers that XM does (and many Sirius subscribers have XM too, anyway), and the equipment is 3-4 technology generations behind XM.

    Don't worry. XM is a safe bet, and there has not been any noise whatsoever about any sort of price hike.

    <edit>: Oh yeah, this article was from the NY Post. They're a rumor mill rag, just two or three steps shy of being a tabloid. Don't trust any article that doesn't say AP or Reuters.

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    Maximum Bitrate nFiniteTuning's Avatar
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    I like Sirius only because they are a sub-sponsor to me. They sponser the company that sponsers me in auto racing and snowboarding. So it will suck to see them go down...but if Sirius finaly loses, I bet anything XM will obtain all the stations from Sirius. Before we know it, we'll have like 500 stations.
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    Newbie TaZMaNiaK's Avatar
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    Quote Originally Posted by nFiniteTuning
    but if Sirius finaly loses, I bet anything XM will obtain all the stations from Sirius. Before we know it, we'll have like 500 stations.
    Nope, like I said, XM is almost maxed out as far as their channel capacity (over 95%), especially now that Baseball is about to start. They have to add 10 new channels just for that. They are only alotted a certain amount of bandwidth to broadcast in, and they have to squeeze all their channels into that. Their alottment allows them about 150 channels, and they're already running at a lower bitrate than they'd like to use. They're currently at 64kbps on most channels. They were originally supposed to use 96kbps..

    Sirius has the same amount of bandwidth assigned to them as XM does, so you would think that by buying Sirius, XM would gain that bandwidth, but it doesn't work that way. That bandwidth has to be put on hold to be made available to any competition that may pop up. So all XM would gain from merging with Sirius is a couple hundred thousand subs, a huge headache from refereeing between O&A and Mel & Howard, and a gigantic friggin contract to pay Howard which would put XM in the same position that Sirius is in now: On the Titanic headed for that iceberg.

    Ain't gonna happen.

    Matt

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    FLAC alti's Avatar
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    This is the part that caught my eye

    "both XM and Sirius are hoping they can convince the FCC to redefine the market to include all content over wireless broadband services."

    am i understanding they want to offer satillite internet? the receiver is not (currently) bi directional though is it?
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    Quote Originally Posted by alti
    This is the part that caught my eye

    "both XM and Sirius are hoping they can convince the FCC to redefine the market to include all content over wireless broadband services."

    am i understanding they want to offer satillite internet? the receiver is not (currently) bi directional though is it?

    No. Probably talking about video, or talking about streaming Sirius over the internet and whatnot. Not very clear, but extremely doubtful it's internet.

    And this merger probably won't happen. The FCC probably wouldn't allow it, and that's assuming the rumor is true. Screw ClearChannel!

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    Quote Originally Posted by dmurray14
    No. Probably talking about video, or talking about streaming Sirius over the internet and whatnot. Not very clear, but extremely doubtful it's internet.

    And this merger probably won't happen. The FCC probably wouldn't allow it, and that's assuming the rumor is true. Screw ClearChannel!
    I am not a fan of clearchannel either but they have messed up XM really. All the music channels are commercial free and they have a lot of good content. I also don't know if clear channel has any say in XM's business decisions or if they are just a financial backer. But I thought i seen somewhere they own like a 40% stake in XM.

    And yeah I would be willing its video. Sirius has been demoing video services for a couple years now and xm is starting to get into that game. We'll see.

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    From that news on FOX, I'm particularly interested in this part: "They have, however, been weighing any potential antitrust concerns that would arise from a deal, which would create a monopoly in the nascent satellite radio business."

    If they were to merge, Sirius and XM would need to make some gutsy moves to keep the Securities and Exchange Commission (SEC) happy. Remember ma' Bell (now AT&T)? It was broken apart because it had become the only player in the market.
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