Showing posts with label XM Radio. Show all posts
Showing posts with label XM Radio. Show all posts

August 24, 2009

From satellite to Internet?

Last year at about this time, we opined that the Federal Communications Commission decision to give the green light for an XM and Sirius satellite radio merger was a “Sirius” mistake.

We’ve seen nothing to change that opinion – and we’ve observed anything but the “lower prices and more choice” that Sirius CEO Mel Karmazin claimed the merger would bring. He called it a “no-brainer."

“Hair-brained” is more like it.

As I attempted yesterday to access XM on-line, which had been available in the past as a bonus to XM subscribers, I was told that it is, indeed, still available, but as a $2.99 per month add-on to the satellite fee.

Even more disappointing than the growing fees is the collective amnesia that has swept XM and Sirius officials regarding “a la carte services,” where customers would pay only for those channels they want. It’s a service that’s long overdue for both satellite radio and cable television. The technology is there, but the corporate will to offer it seems to have vanished – if it was really ever there in the first place.

Corporate desire to maximize profits is not a bad thing. The real culprits here are the mutton-headed bureaucrats at the FCC – and in Congress – who don’t seem to have a clue about how a monopoly preys on consumers, but eventually comes home to roost. We had hoped that Liberty Media's bailout of Sirius-XM last winter might provide some impetus for business practices that would revitalize satellite radio. It appears we were wrong.

Look for continuing problems in the satellite radio business.

In the meantime, I’ll continue to spend more time with a few good local broadcasters – and their advertisers.

Oh, yes, today I also test drove a couple of Internet Radios – interesting gizmos that may have a real impact on all broadcasters, but especially the Sirius-XM monopoly.

Like I said, look for more tough times for the satellite radio folks.

July 27, 2008

A Sirius Mistake


The Federal Communications Commission approved the XM-Sirius merger last Friday (7/25), bringing to an end a 16-month battle over whether or not such a move would be in the public interest.

South Dakotan Jonathan Adelstein was one of the dissenting Commissioners in the 3-2 decision, hailed by FCC Chairman Kevin Martin as a move that will give consumers greater choice and greater flexibility.

Sirius and XM are the only satellite radio companies, and they concede that the $3.5 billion "merger" -- really a buyout of XM by Sirius -- will save them lots of money.

For the 18-million of us who are satellite radio subscribers, don't look for a rate reduction any time soon. The deal would freeze basic subscription increases, but you can rest assured the new company will find ways to get around that inconvenience. There were some compromises, but nothing that keeps it from falling into the category of a really bad public policy decision by the Federal Communications Commission.

The FCC can spell m-o-n-o-p-o-l-y, but they don't understand its meaning.

For more background on this deal, read these articles from Broadcasting & Cable and the New York Times.