XM And Sirius Propose Merger Pricing Plans

Combination Of Satellite Radio Companies Would Provide A Variety Of Channel Choices And Prices

(AP)  Executives at the nation's two satellite radio companies released details of pricing plans Monday that would allow customers to choose which channels they want to receive if the two firms are permitted to merge.

XM Satellite Radio and Sirius Satellite Radio announced the merger, then valued at $4.7 billion, last February. The combination of these two companies requires approval from antitrust regulators and the Federal Communications Commission.

The pricing plans announced Monday range from $6.99 per month for 50 channels from one company to $16.99 per month where customers could keep their existing service, plus "choose from the best" of channels that are offered on the other service.

That means a customer could listen to Major League Baseball games on XM and tune in to National Football League games on Sirius on the same radio.

Currently, the price of a monthly subscription for both companies is $12.95 and there is no channel choice, or "a la carte" option.

"The efficiencies of this merger will allow the combined companies to save hundreds of millions of dollars a year and give us the opportunity to increase the number of programming options available to subscribers," said Sirius CEO Mel Karmazin Sirius in a press release.

Sirius and XM also said that subscribers would be able to receive programming from both services on their existing radios following a merger.

A combination of Sirius and XM faces steep regulatory challenges, however. When the companies received their licenses from the FCC to begin offering subscription radio service via satellite, they agreed not to merge.

Since then, they argue, the market for audio entertainment has broadened with the addition of new digital radio and downloadable music on portable devices like iPods.

Consumer groups and the National Association of Broadcasters oppose the proposed merger. The two companies hope to close the deal later this year.

[pressenter1]

THE MERGERS WOULDN`T MAKE ANY DIFFERENCE TO ME .THEY BOTH CARRY VIRTUALLY THE SAME TYPE OF PROGRAMMING ANYWAY.

[dj0114]

This is great news because I can then get MLB along with the other great programming that is on Sirius.

This would be further heaven for those of us already enjoying the commercial free music, the NFL and the NBA on Sirius and then be able to add the good channels on XM with a few more bucks per month.

Everyone should also tune out the NAB's argument that this merger should be opposed and shot down. It is an obvious self serving attempt to keep free radio's monopoly on the airways. No one pays to listen to free radio (unless you count the amount you pay in your sanity listening to the countless commercials).

If they have such a great product, why fear a merger of a pay radio service? Surely the network TV stations seem to be doing OK with all the consolidation that has happened in the cable TV business over the last decade.

The problem is the NAB's monopoly will be a bit eroded under a merged satellite radio company because they could save money and better compete with free radio, IPods, MP3 players, IPhones' etc.

As long as I and others decide to pay to listen to radio, why should the NAB be allowed to block this merger? I say this ideal of ala carte programming should be regulated to cable TV- watch how fast channels like Oxygen, MTV2, CSPAN, HSN2, etc. are dropped by people.

Let the merger go through.

[ichabod57]

If this a la carte thing is so great, why not start it now? I wouldn't mind shutting down about half of the Sirius channels and save money. I only listen to a handful anyway.

So what happens to the thousands of people who purchased life-time subscriptions to Sirius?

I haven't heard a word about what they are going to do or offer these people. Until then I would not support any merger.

[olebd]

Let them merge. It couldn't hurt. I really like the al a carte idea. I wish cable and satellitte TV would become al a carte. I would do away with at least half the channels I have currently.