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XM & Sirius: What a Merger Won't Fix
Last updated: February 21, 2008 - 5:01am
XM & SIRIUS: WHAT A MERGER WON'T FIX
[SOURCE: BusinessWeek, AUTHOR: Tom Lowry and Paula Lehman]
[Commentary] Even if regulators finally bless the proposed merger of XM and Sirius, there's no guarantee that the combined company will survive in a very competitive environment. Perhaps XM and Sirius should just take the satellite out of satellite radio. Both services have great content and where better to sell that programming than on cell phones or Web sites? Distributing more programming through third parties would require moving beyond the current $12.95-per-month subscription model. That could include sharing ad revenues or subscription fees with wireless carriers or Web sites. XM's deal with Cingular may provide a model: Subscribers pay an extra $9 a month to get the XM channels, a fee that is divvied up between both companies. XM and Sirius have built surprisingly robust brands in six years, thanks in part to pushes in such retail outlets as Best Buy. For media outfits trying to reach ears and eyeballs in multiple ways -- including, if it survives, via satellite -- a strong brand and content may well be the killer apps.
http://www.businessweek.com/magazine/content/07_10/b4024055.htm?chan=tec...
* Can Video Help Save the Satellite Radio Business?
http://www.nytimes.com/2007/02/26/technology/26satellite.html
* XM and Sirius: Happy Together
http://www.multichannel.com/article/CA6419390.html?display=Top+Stories
* Stick to the Rule, Satellite Radio
http://www.multichannel.com/article/CA6419267.html?display=Opinion
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