According to The New York Post, Sirius and XM, both Satellite Radio providers have been working all weekend to work out a merger agreement that could possibly be confirmed today. The Post says that talks are still in process, and that at any point the deal could fall through. If you’re a subscriber of one of these services, this could be a pretty sweet deal.
This is really a win-win situation. Users get more channels, while Sirius and XM save themselves some money. In fact, analysts say that they would be able to save $7 billion a year. That’s certainly not pocket change. With no competition in the world of Satellite radio should they merge, they might run into some problems with the FCC approving the deal. And, according to analyst Robert Peck, the approval could potentially take up to 15 months.
In the mean time while we’re waiting on the deal, Sirius subscribers can sit and listen to Howard Stern or Martha Stewart while XM subscribers can tune in to the start of the baseball season or Oprah.
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Tags: General, Satellite Radio
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Thanks for the update Cory!
This would really be awesome. All of the sports coverage that it would offer would surely knock out any rivals from popping up though, but the consumers would definitely win. I’m an XM subscriber and when I was trying to pick between the two services it was a tough choice, but in the end I think XM was the better route for me.
The question here is will the savings, some $7 billion, be passed on to consumers or will the monopoly drive up subscription cost? What is the price elasticity of satellite radio anyway?
I’m sure the FCC would have some say in how much they can raise the price since they would have a monopoly on that industry.