A merger between these two is probably inevitable. A satellite radio receiver was hands down the most popular gift among my family and friends this past Christmas. Everyone from my Dad to my friend Andrew got one, and those that didn't got iPods, which if the Podcasting thing takes off - could also be a boon to satellite radio as well.
As mobile technology in the United States advances, XM and Sirius are hoping the FCC will consider satellite radio as part of the broader industry of delivering music and other content through mobile devices, such as cellphones, say sources.
A merger between XM and Sirius (neither of which is yet profitable) would alleviate a price war for premium content and allow the two companies to save significant amounts of money on marketing costs.
And with the advent and spread of media such as the internet and satellite radio, will the FCC soon become obsolete? One hopes.
UPDATE: I find it amusing that CNN links to the NY Post as breaking this story.
This consolidation bothers me. For the liberal minded, it should set off alarms about the stiffling of diverse voices through monopoly (the Clear Channel model, of which people like Howard Stern were trying to escape by going to Sirius), and it should set off alarms among the conservative minded about the stiffling of free-market competition and therefore prices and prodcut improvements. The whole concept of satellite network was anti-monolithic voice; now they're putting themselves in danger over the long run of becoming the same, watered down juggernaut that killed radio. They're also killing any chances of other start-upu satellite companies joining the fray; who wants to compete against the combined market share of these two so early in the game? I mean, look at where the Microsoft model got us. I hope it doesn't happen.
This consolidation bothers me. For the liberal minded, it should set off alarms about the stiffling of diverse voices through monopoly (the Clear Channel model, of which people like Howard Stern were trying to escape by going to Sirius), and it should set off alarms among the conservative minded about the stiffling of free-market competition and therefore prices and prodcut improvements. The whole concept of satellite network was anti-monolithic voice; now they're putting themselves in danger over the long run of becoming the same, watered down juggernaut that killed radio. They're also killing any chances of other start-upu satellite companies joining the fray; who wants to compete against the combined market share of these two so early in the game? I mean, look at where the Microsoft model got us. I hope it doesn't happen.