XM-Sirius merger: the satellite radio monopoly

XM-Sirius merger: the satellite radio monopoly


We’ve been hearing about the possibilities of a merger between XM Radio and Sirius Satellite Radio for some time now, but it seems that we may be that much closer to it becoming a reality. The infrastructure costs, should the merger actually happen, could be shared between the two firms, meaning that they would both have a much easier time pulling in a profit.

Sirius shortened the gap between the two when they nabbed Howard Stern, but XM still has a lead as far as number of subscribers. As such, it is said that Sirius is much more open to the merger than XM is. Moreover, it seems that the vast majority of subscribers never purchased a satellite receiver on their own and are rather just people who got the system for “free” when they bought a new car, and liked it so much that they decided to extend their trial membership.

It’s hard to say where satellite radio will go in the long run, but from a consumer’s point of view, imagine having access to not only Howard Stern and Martha Stewart, but also Ellen Degeneres, Oprah Winfrey, and every sporting event known to man.