One thing to reference in regards to the monopoly issue. A few years back, DirecTV and Dish Network tried to merge but the merger was blocked because the combined companies would have a monopoly (Both companies had over the previous year, picked up their smaller competitor).
As the regulations are currently written, the two companies cannot merge without one of the companies having to give up their SDARS license. But like many regulations, this can be rewritten at the whim of the agency that issued it. I honestly wouldn't be surprised if Clear Channel or CBS Radio comes into play and buys one of the SDARS license.
One thing I'll like about this merger is the fact that I won't lose the NHL, and honestly, XM
has done a much better job with the games than Sirius (Although their daily show, NHL Live is excellent.).
Here's are my questions about what will happen if the two companies do actually merge:
1. Equipment. Whose standard is going to be the one that will be retained? Will the subscribers who have the other equipment be left out in the cold or will they continue to supply programming to those with that type of receiver until a set date? At least with the head units, you can just get the brain you need. Everything else would still be up in the air.
2. Programming. What gets the ax, and what stays? Since both companies offer very similar music channels, I would guess those channels would merge. The real action is between Martha Stewart and Oprah and between Howard Stern & Company and O & A and Company. I wouldn't be surprised if O & A packed up and left since they do have the terrestrial stations their show is on.
3. Subscription rates. How much will rates go up as a result?
|Quoting Go3Team (Reply 15):|
They will have to consider satellite coverage - XM has, or will have 4 in a stationary orbit, and Sirius has 3 in a different orbit. Sirius also has limited repeater coverage, which has produced numerous complaints in some areas. I would think the XM equipment wins out on this part.
XM filed an interesting patent recently with the US Patent Office:
For those of us with Sirius, the orbit looks familiar.....
[Edited 2007-02-19 21:48:23]