XM – Sirius Merger and What it Means to You
XM Radio and Sirius merged (technically, XM was acquired by Sirius) on July 29, 2008. They formed what is now known as Sirius XM Radio. This merger did not have any immediate effect on its customers or offerings. There are some exciting changes coming and I wanted to share them with you. Please understand that I am speaking based on information that I have gained through online research and contacts within the industry. I am not speaking on behalf of Sirius XM or making any promises!
First of all, current equipment will continue to work into the foreseeable future. You will not have to buy any new radios to continue to subscribe. Within 9 months from the merger you will see “interoperable” radios being introduced. These radios will be able to take advantage of new plans that will allow customers to pick channels from Sirius or XM or both.
No, your XM radio will not start to pick up Howard Stern or Martha Stewart. The stations that you get now will not change anytime soon. In November (hopefully) there will be plans that range from 6.99/month up to 16.99/month. These plans will allow you to choose how much satellite radio you really need.
One of the things that caused the merger to take so long was the government agencies did not want to create a monopoly and harm consumers. In my opinion, this is not a monopoly. Satellite radio has a tremendous amount of competition from things like HD Radio, iPods, terrestrial radio. I do not think that both companies would have survived without a merger. It is hard enough to compete against iPod and terrestrial without having to compete against each other. Merging allows for a savings in the billions of dollars. The combined company (in my opinion) ensures the longevity of satellite radio as a medium and in turn the usability of the radios that millions of people have invested in.
As for harming the public, this is the farthest thing from the truth. A lot of people do not want to spend 12.95/month for satellite radio. By offering a smaller range or programming at $6.99, more consumers will be able to take advantage of what millions of us have come to enjoy.
Sirius XM cannot enter into any exclusive hardware deals. In the past, all Sirius radios were “manupackaged” and distributed by Directed Electronics. Going forward, you will start to see products from many different companies. This competition for hardware should lead to very cool innovations and lower prices that will ultimately benefit the consumer.
So should you hold out and wait to get a satellite radio? I wouldn’t. Satellite radio is an extremely good product. Radio prices are as low as 29.99. Stop by your local specialist audio store (Mobile Edge if you are in the area!) and pick up an inexpensive radio. Try it out for a few months and see what you think. There are no contracts. If you don’t like it, cancel the subscription and sell the radio to a friend. You don’t have a lot to lose. And I would bet that you will love it like almost everyone else that has tried it!
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