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January 2, 2007

Could XM Sirius-ly Want To Merge?

Speculation of a Satellite Radio merger is nothing new, but an increasing number of pundits are weighing in with scenarios of how the possible transaction would play out, and whether it'll benefit anyone (aside from Mel Karmazin). From yesterday's New York Times:

Today, thanks in part to the outsize radio personality, the Stern Effect has increased Sirius’s base to about six million subscribers, up 80 percent from one year ago. XM has increased its numbers by more than 30 percent, ending 2006 with 7.7 to 7.9 million customers.

...

“Satellite radio is growing faster than any consumer product except for the iPod.”

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“When you have two companies in the same industry, we have a similar cost structure. Clearly, a merger makes sense from an investor’s point of view to reduce costs, and to have a better return,” said David Frear, the chief financial officer for Sirius.

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In addition to Howard Stern, Sirius features personalities like Deepak Chopra, Judith Regan, Richard Simmons and Martha Stewart. Sports programming includes N.B.A., N.F.L., and N.H.L. games; Nascar programming begins this year.

XM has shows with hosts including Bob Dylan, Ellen Degeneres, “Good Morning America” personalities, and Oprah Winfrey. XM broadcasts every Major League Baseball game as well as P.G.A. golf.

Yet the vast majority of programming remains duplicative.

Really? We've dabbled in Sirius, but never wrapped our ears around XM's programming. Lefsetz (shockingly) sees it differently:

A merger would be terrible. For you’ve got two completely different cultures and Mel Karmazin would be in control when the deal was done, and all Mel knows is advertising, and that’s the one ace in the hole satellite has, its LACK of advertising.

Sirius has got the image and the mo.

XM has the better service, both musically and technologically.

...

The way this fucked up world works expect the two companies to get together and for the resulting company to be like Sirius. And, to paraphrase John Lennon, then the dream would be over.

Two different cultures. Two different incompatible technologies. Does this sound like fertile ground for getting together? But don’t ever forget, Wall Street is in control here, and what the Street wants will happen.

But the most legally sound wish and prediction comes from the Chicago Sun-Times:
Who knows? Maybe regulatory agencies will block the merger -- not because there's anything illegal about it, but because it makes satellite listening less fun.
We don't expect many of you to have experience with both services, so a compare-and-contrast is asking too much. But would a single, monolithic satellite entity be better for music than two competing services? The danger is that both continue in their financial struggles and disappear completely -- but in an age of internet radio and near-limitless access to all the music, like, ever, the real value in FCC-free radio is the programming, the content selection, the trustworthy filter. Or maybe we've got it twisted, and the ultimate end of the medium is uncensored fart-jokes, fuck noises, and requests to see Pam Anderson's "lady lips."

Posted at 12:35 PM




29 Comments

I've got Sirius for Stern. The music on it kind of sucks. Can't really speak for XMs music, but i can't imagine it being much better. The audio quality is terrible and yeah, it's indie rock, but it's still the same 40 songs over and over. Sucks.

Posted by: greg at 01/02/07 1:19 PM | Reply
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I have had XM since Nov 2004. I got a radio that has it hard-wired in and the sound couldn't be better.

My dad and my brother both have had Sirius for about a year and they love it, too. I think you can't go wrong with either if you love being exposed to new music all the time.

XMU and The Verge channels are pretty awesome on XM, though The Verge tends to skew Canadian for some reason.

Posted by: mandy* at 01/02/07 1:56 PM | Reply
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Sirius is programmed like its ancestor, FM radio; XM is programmed like by actual real live people with passion for music. Read Lee Abrams' blog if you want to read about that passion.

http://leeabrams.blogspot.com/

Posted by: Rob I at 01/02/07 1:57 PM | Reply
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I've got Sirius and their "indie/college" channel is a joke. Same 'ole tired playlist for eons and a paltry number of bands at that. They do have Brooklyn Vegan and a couple other cool shows on at night. But their main rotation bites.

Posted by: michael at 01/02/07 1:58 PM | Reply
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I have XM. My boyfriend has Sirius. He got Sirius for the sports, but I think their music selection is pretty weak compared to XM. The way I see it is XM for better music, Sirius for better talk/sports.

Posted by: Lindsay at 01/02/07 2:00 PM | Reply
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Agree with mandy... XMU and The Verge are my favorite channels too. Great rotation. We listen to those channels in my office most days, and there is never a repeat the whole work day.

Posted by: Lindsay at 01/02/07 2:03 PM | Reply
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XM has much better hardware. The XM Inno is a better product than the Sirius Stiletto in terms of pricing and reception. I agree that programming rules, but if you can't listen to it why bother?

Posted by: Adriano at 01/02/07 2:12 PM | Reply
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Long time Sirius subscriber and will admit that their rock playlists get a little tired (Left of Center, Alt Nation, Sirius Disorder). But I love flipping on Radio 1 for Zane Lowe's show, plus Shade 45 will play deep cuts from mixtapes and Area 33 and Boombox offer decent electronic options.

On the issue of a merger: Doesn't basic economics teach us that competition is a good thing? As long as XM is around Sirius must strive to offer better programming and vice versa, right?

Posted by: Wolfy at 01/02/07 2:24 PM | Reply
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I bought XM because I'm a long time Opie and Anthony fan, and it provides joy to my weekdays over and over again.

Posted by: Brad at 01/02/07 2:35 PM | Reply
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Sirius is the only one with something to gain at the moment. If it happens I think O&A might have to whisper "Your Mom's Box" once again and move back onto terrestrial full time. E-lo can do a Fred role and work the soundboard. Tell 'em E-Lo!

Posted by: JG at 01/02/07 3:27 PM | Reply
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Agree with earlier post, XM has real people that actually care about music. XMU is a great channel, and have listened to Left of Center on Sirius via friends, and it's playlist is repetitive, and get's old quick. Also Ron & Fez and O&A make XM that much better.

Posted by: Wes at 01/02/07 3:32 PM | Reply
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I am a huge Stern fan and have not made the leap yet, instead siphoning off torrent sites to get the daily treat. I checked out the other channels during the free preview in Oct or November expecting to hear salvation and convince myself to make the switch but like the other commenters, the indie channel had diversity but it was bad and there were not a lot of strong acts I even knew of.

For now, I am sitting tight since they become irrelevant now that they are running their shows over the internet - (http://blog.wired.com/music/2006/12/xm_sirius_consi.html)

Posted by: Jonathan at 01/02/07 3:33 PM | Reply
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Fred on XM rules my satellite world... and fuels my iTunes/emusic purchases like nothing else.

Does that make me old?

Posted by: The Dude at 01/02/07 3:57 PM | Reply
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"Also Ron & Fez and O&A make XM that much better."

You mean it makes XM more gooder.

Posted by: Brad at 01/02/07 4:26 PM | Reply
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In all this talk about a Sirius/XM merger, it seems that Sirius management, technology, and programming would prevail. So how would those who have XM receivers be able to receive the post-merger programming?

Posted by: skyline at 01/02/07 5:18 PM | Reply
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Sirius Radio's Music, Talk, Sports, Sound Quality, Variety / Choice and Hardware blow away XM and FM.

This justifies the huge recent increase in subscribers for Sirius with low churn rate.

XM ='s muzak / elevator music with automated dj's.

Peace Love and the KOAM

Posted by: shuskky at 01/02/07 5:36 PM | Reply
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XM is great. I've had it for over three years now, and many of the rock stations have huge playlists and a vast variety of special shows. Some of these great stations include The Loft (light music), XMU (indie), Fungus (punk), Fred (80's alternative), XMLM (metal), Lucy (alternative hits from the 80s- present), and Deep Tracks (classic rock). XM has great news stations, every MLB and NHL game all year, good comedy stations, and other music stations of an innumerable amount of genres. It just seems like there's always something to listen to.

Although Opie and Anthony are on in the morning on Free FM, an extended show with 2 more hours appears on XM, and it's great to hear replays later in the day since many like me don't have time to listen in the morning. I've been a fan of the Ron and Fez show for a long time, and it's great to hear them on XM as well.

A merger would be very strange. The extreme difference between their respective channels and those who program them would be hard to overcome.

Posted by: Tom at 01/02/07 5:57 PM | Reply
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Hoo Hoo Robin Howard is a hack. O and A are way way better than Howard. The only thing I see on Sirius that would be nice is the blog radio thats about it.

Posted by: Its me at 01/02/07 6:13 PM | Reply
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What's interesting about all this merger talk is it's always the dude from Sirius being quoted as saying he'd consider buying XM. Yet XM is the bigger, more successful company. I thin this is all just a move by Sirius to try and come off as a bigger player than they are.

Posted by: Pickle the Cat-Faced Boy at 01/02/07 6:51 PM | Reply
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I've had Sirius for several years, and have started to notice that their indie station is growing a bit repetitive. But they also just added Canadian stations CBC3 (94) and Bandeapart (95) that rock my world.

Posted by: Heather at 01/02/07 8:15 PM | Reply
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I really don't know how anyone can say that Sirius has better hardware than XM. I will say that I think Sirius has some programming that I'd like to hear, mostly niche shows. I'm very pleased with my XM. I've had it for 3 years now. If they could take the Sirius sports content and combine it with XM's music programming, I'd be for it. The big problem is that Howard Stern would try to use his inflated influence with Karmazin just like he did on regular radio. He would try (and probably succeed) to stifle Opie and Anthony and Ron and Fez. It would be a sad day for Sat. radio.

Posted by: Jeremy at 01/02/07 9:59 PM | Reply
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Does Clear Channel still have money invested in XM?

I know they did at one time.

That's why i chose Sirius back in the day.

Posted by: Tyson at 01/03/07 4:30 AM | Reply
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i enjoy xmu and ethel on xm radio. oh yeah and also ron and fez rule.

Posted by: dg at 01/03/07 2:43 PM | Reply
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"Ethel? Lucy? Fred?" Pardon my eFrench but, wtf?

Posted by: Jay at 01/11/07 2:44 PM | Reply
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two word: howard stern!

Posted by: julio at 01/13/07 8:03 AM | Reply
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Sirius has no variety. I have no idea what that person is talking about. Sirius is so repetitive on their music channels. Being a subscriber to both I can tell XM has more variety and overall better music programming. Sirius hardware is by far the worst. I think Brad is in his own world there with his Sirius love. I can agree though Sirius has the advantage in sports. Even though MLB fans would say different.

Posted by: Matt at 02/05/07 10:02 AM | Reply
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Sirius has no variety. I have no idea what that person is talking about. Sirius is so repetitive on their music channels. Being a subscriber to both I can tell XM has more variety and overall better music programming. Sirius hardware is by far the worst. I think Brad is in his own world there with his Sirius love. I can agree though Sirius has the advantage in sports. Even though MLB fans would say different.

Posted by: Matt at 02/05/07 10:03 AM | Reply
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Agreed. I subscribe to both XM and Sirius and my unbiased opinion for indie music, XMU is far superior to Left of Center. XMU is way more eclectic and their DJs have a more progressive ear. I remember one of the DJs on XMU saying they receive so many great CDs from new bands that even to play one track from each, they can never catch up.

L of C, same old tired playlist over and over again.

No offense anyone, but proof is in your playlist. Oh wow, they're playing Arcade Fire's 'Intervention', yet again, for the 9 billionth time.

Sirius for Howard, XM for the music.

Posted by: Harry at 03/15/07 10:31 AM | Reply
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Wow, cool man, big thanks! http://lnuetarkiylpr.com

Posted by: fawnrpndjg at 04/25/08 1:27 AM | Reply
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