FCC approves Sirius Satellite acquisition of XM

[Kire]

Source: Reuters

FCC approves Sirius Satellite acquisition of XM
Fri Jul 25, 2008 9:13pm EDT

By Peter Kaplan

WASHINGTON (Reuters) - Sirius Satellite Radio Inc's $3.3 billion purchase of XM Satellite Radio Holdings Inc was approved with conditions by U.S. communications regulators on Friday, clearing the way for a deal that will leave just one U.S. satellite radio service.

The FCC's commissioners voted by a 3-2 margin in favor of a proposal that would allow the deal to proceed as long as the companies met a series of consumer protection conditions, including a three-year cap on prices, setting aside 8 percent of their channel capacity for minority and non-commercial programming and payment of a $19.7 million penalty for past FCC rule violations.

"I think this merger is in the public interest and will ultimately benefit consumers," FCC Chairman Kevin Martin said.

The companies also will have to make available to consumers radios that receive both Sirius and XM. As part of the order, the FCC also will conduct an inquiry into whether it should require that all satellite radios be built with technology that allows them to also receive high definition terrestrial radio signals.

More: http://www.reuters.com/article/technologyNews/idUSN2532863820080726

Read more: http://www.reuters.com/article/technologyNews/idUSN2532863820080726

---

Friday Night News Dump!

[onehandle]

1. Good. Without this merger, both companies would die, and may die yet.

It might be too late. Thanks, for nothing Feds.

[Renew Deal]

2. This is great news.

Finally this gets done. It takes less time for massive banks and oil companies to merge.

[Ian David]

3. Kiss Air America and America Left goodbye.

Also, look forward to them trying to censor Howard Stern.

[Bombtrack]

6. I somehow doubt that Howard would be going apeshit on a daily basis to get this DONE if they were

going to censor him.

The only reason to assume Sirius is going to cancel one or both of their left-wing stations is if after a while they see subscribers aren't chosing them as part of their ala carte programming packages.

Sirius isn't News Corp, it was started by a transgender lawyer, author, and entrepreneur http://en.wikipedia.org/wiki/Martine_Rothblatt

and Mel Karmazin gives most of his support to Democrats

http://www.newsmeat.com/media_political_donations/Mel_Karmazin.php

[Renew Deal]

7. I'm looking forward to Air America

I've got Sirius. Hopefully we'll kiss Lynn Samuels goodbye. I really want to be able to listed to AAR again. It's terrible in NY.

[maseman]

13. You obviously know nothing about this

First off the CEO of Sirius is Mel Karmazin, the former CBS RAdio CEO and friends of Stern. The reason why Sirius has been as successful as they have been is the force of Howard Stern. The last thing in the world Karmazin would do is censor Howard. He is the primary reason why a huge percentage of people even have Sirius.

Second, regarding Air America (or any other progressive talk) Karmazin also realizes that much of the progressive talk format is only available online or on Sirius. He isn't going to dump it. The more variety you have on sat radio the more reasons (like me and you) to subscribe.

[Ian David]

15. We'll see. n/t

[onehandle]

24. Sirius is essentially buying XM.

Sirius is hardly known for censorship. If they weren't a pay service, they'd never get away with some of the stuff I've heard on various stations.

Now it is true that the right-wing stations outnumber the left stations 2-1. But that's the world we live in.

[Kire]

37. I think you can have the option of having both Sirius Left and XM's America Left

XM's America Left has Bill Press, Ed Schultz, Randi Rhodes, Thom Hartmann and Mike Malloy. Plus, XM welcomes Stephanie Miller and the return of the Young Turks to the home of America Left, XM 167.

Actually, you get most of those on Sirius Left, too - except Randi Rhodes and the Young Turks. Plus, Alex Bennett and Lynn Samuels (if that's what you're into), and Mark Thompson, and a few more original programming on weekends.

to be honest, I'm more of an NPR guy, sorry

[Zorra]

39. I hope not. America Left, XM 167, has an awesome lineup right now.

Stephanie Miller, Ed Schultz, Randi Rhodes, Thom Hartmann, Rachel Maddow, Mike Malloy, and Richard Green.

And Sam Seder filling in at times.

If America Left goes I will cancel my subscription to satellite radio.

[pattmarty]

4. I am against ANY monopolization or consolidation or whatever.......

.....the people in the suits with the high dollars want to call it. It's sink or fucking swim, just like us peons have to do. AND now, they can charge whatever the fuck they want too.

[Renew Deal]

5. You don't have to pay.

You're not obligated to get satellite radio.

[pattmarty]

46. Well then, good luck on your XM/Sirius subscription........

........when the prices start rising because of the "increased use of satellite radio resources" by China & India. Seriously though, what's to stop them from doubling the rates? People here at DU have argued that both are supposedly losing money, and if you're losing money you either cut the product somehow or raise prices, or as a last resort, go out of business. I don't trust ANY corporation at all anymore. If they told me at 8 am in the morning, that the sky was blue, I would have to go outside to look.

[Bombtrack]

8. Those Satellite radio subscribing "peons" would have ample evidence to show Mel Karmazin as a liar

which to my knowledge he hasn't publically been known as of yet, if indeed he did raise prices for the same content customers had been paying for before.

http://www.xm-sirius-blog.com/blogviewpost_3e0fd965-0aab-4bcf-9dd7-c0cc86cbe1e3.aspx

[high density]

26. The merger forced some lower a la carte prices on them

I'm looking forward to those packages, even if they require new hardware to utilize them.

[Psephos]

58. It's not a monopoly. They compete against AM/FM, HDRadio, and your iPod

and plenty more.

The satellite space is small, and won't support two competitors. I look ahead and see that satellites are old tech already and will be even less advantageous in the future. Their marketshare is not going to grow a whole lot more.

The choice is more about having one reasonably healthy company providing better service (see the consent decree) or two dying off.

Radio in general, and satellite in particular, is not a necessity. Don't want it? Don't buy it. But don't fuck it up for those who want a healthy alternative.

[jaysunb]

9. Not good.....

:evilfrown:

[Bombtrack]

10. Not good for who? I've been paying paying for and enjoying Sirius for 2.5 years

and I very much like the idea of now being able to hear Major League baseball and other XM channels I wasn't able to get and not have to pay for the dozens of shitty Sirius stations I would never listen to like Faction, radio margaritaville, New Country and Shady 45.

absolutism is not a virtue. The Exxon Mobile Merger was a bad thing, that doesn't make this (which took 3 times as long) automaticallly also a bad thing.

[Renew Deal]

11. I was so thankfull for Punk 29

Because Faction was unlistenable.

[Bombtrack]

12. Faction should just be called the Mountain Dew dumbshit channel

I think Crazy Cabbie hosted a show on there for a few weeks. Very appropriate.

I wish Bubba the Love Sponge would move over there, have Adam Carolla or someone halfway smart replace him on Howard 101

[sharesunited]

14. No strings attached?

Not stripping them of any frequencies to make the same available to new entrants to the SatRad business?

Big mistake and bad precedent.

[Kire]

36. do some research

they have to give up 24 channels to public interest or minority owned broadcasters, they have to pay a 20 million dollar fine, they can't raise prices for three years, they have to make "a la carte" options available, thus lowering the price of a significant number of current subscribers, incurring a loss, and they have to come to Chairman Martin's house and give him a foot massage on weekends.

I think there are other strings, just follow the links in the OP and, maybe ask a question from somebody and you'll find out.

[sharesunited]

40. Ignorance of a subject does not deprive me of an opinion.

And what are you anyway, some kind of monopolist?

[Kire]

45. no, I'm not a monopolist

just somebody with an opinion, like you

and this is not a monopoly (there are plenty of sources that might help you to agree with me on that, but if you don't want to look, then well, I guess we shouldn't reply to each other about this topic, then)

[Hugin]

16. "....have to make available to consumers radios that receive both Sirius and XM."

Does this mean I'm going to have to buy YET another radio?

[Sen. Walter Sobchak]

20. Only if you want to

The seperate Sirius and XM signals will continue to be broadcast for years to come and as channels are consolidated they will be offered on both streams.

I really wanted to buy a new Sportster 5 but I have been holding off because of this.

[tpsbmam]

23. That's my question but beyond that.....

Mine is built into my car -- buying a new radio for my car is NOT going to happen.

[Hugin]

30. One of my cars has a SR built into it which....

I never activated.

I can see this devolving into the traditional Cable tier system. Where no matter where you are there's always
a better tier above it in price. They just keep moving the good stuff just out of reach.

I suppose the ala-carte might take care of that, but, that means buying another radio.

Well, at least I'm not alone in this...

Edit: Changed evolving to devolving.

[Kire]

31. there seem to be two stories to this

siriusmerger.com says:

"We guarantee no radio will become obsolete. Your current radio will continue to provide you with the programming you enjoy, whether you keep your current service or change to a new subscription plan." - right on the front page


but other places say that xm won't work on sirius's machines and vice versa.

It sure would be nice to hear some kind of announcement, or even a press conference from Mel Karmazan and the gang.

[tpsbmam]

33. A little vague about the radio issue --

(Thanks for the site -- wasn't aware of this one.)

7. Should I buy a radio today or wait for a dual-service radio? I want to buy a second radio; should I wait for the new models?

There’s never been a better time to be a SIRIUS or XM subscriber. Any radios or other equipment that subscribers currently use will be fully supported by SIRIUS and XM for many years to come. Furthermore, following the merger, existing radios will all be able to receive a mix of programming from both services.

8. Which company’s satellites will the merged company use? How long will you operate both satellite systems?

Each of our satellite systems will continue to operate for many years to come providing service to the millions of radios in use today.

I've learned to trust very little. What does "many years to come" mean? I realize they can't provide a specific number of years, but I'm envisioning the day in the not too distant future when they say my factory installed XM car radio is obsolete and/or the Sirius radios are obsolete.

[Kire]

34. yes

all of these satellite radios tend to die out in three to five years

that's what I've heard, and what I'm experiencing now

my starmate replay is not quite three years old, but I have to jiggle the power cord to get it to stay on, and heaven help me if it gets bumped now.

Now, I predict somebody's going to stomp and yell, but look at the ipod, and everything else these days. In three to five years, that's about average. I am not saying it doesn't suck, just that I don't want to embarass myself whining about it too much.



which page did you get that blockquote from? thanks

[tpsbmam]

35. Oops, sorry I forgot the link....

http://www.siriusmerger.com/site/page/faq

[Kire]

38. "Same Radios"

We guarantee no radio will become obsolete. Your current radio will continue to provide you with the programming you enjoy, whether you keep your current service or change to a new subscription plan.

http://www.siriusmerger.com (this quote can be found in the middle of the front page, down towards the bottom)

[Triana]

17. Of course they do. Pfft. n/t

[Malidictus Maximus]

18. As long as Sirius keeps the Met opera and Classic Jazz channels!!!

That's all I ask.

[Kire]

32. where else can you get opera all day, every day?

Originally, Alt Nation, First Wave and then Lithium, were my favorites, but now I listen to Met Opera at least as much, if not more sometimes. I have no idea what they are talking about, but it's just nice to listen to for a change.

Bring on the insults!

[Sen. Walter Sobchak]

19. Finally!

I am really glad this freakshow is over and I am really angry about how many Democrats signed up as useful idiots to fight the merger on behalf of clear channel.

XM Radio is apprently just weeks away from a total shutdown, I am personally a longtime Sirius subscriber but I would like to add "The Virus 202" to my Sirius subscription. I find the music on XM terrible but while I am ashamed to admit it I really am a big Opie and Anthony fan.

[solarize]

22. O&A are fun to listen to

but they're just too racist/sexist/republican for me.

[Kire]

21. Want to know what it's going to look like?

Like What You Have Today? It Will Still Be Here Tomorrow
From day one, SIRIUS and XM have promised that no subscriber will pay more after the
merger for a service similar to what they enjoy today and that no existing radio will be
made obsolete by the merger. The XM Everything and SIRIUS Everything packages will
offer a service similar to that offered today for the standard subscription of $12.95.
Customers who choose to keep the subscription package they have today can continue to
do so for $12.95 per month. Customers who purchase XM Everything and SIRIUS
Everything packages will also be able to continue their current $6.99 multi-receiver
subscriptions.
Additional detail

A La Carte – 50 Channels ($6.99)

A La Carte – 100 Channels ($14.99)

Get Mostly Music or Just News and Sports and Save 23 Percent

Discounted Family-Friendly Packages

Best of Both Packages Will Be Available on Existing Radios


Lots more here:

http://www.siriusmerger.com/

[pattmarty]

47. Do you work for these people????????

[Kire]

67. No

I don't, but I do know how to get you some free Sirius bumper stickers...

[happygoluckytoyou]

25. they dont mind waiting 3 years to own it all.... competition fucked again and the public buys it

[Kire]

27. they have plenty of competitors

http://www.tennessean.com/apps/pbcs.dll/article?AID=/20080712/OPINION01/807120327/1008

[MilesColtrane]

28. Pretty clear that satellite radio in it's present form is doomed.

Now a company that has never made a dime of profit in six years is not going to be able to raise it's subscription price?

Time to put Sirius' little logo dog Mongo to sleep.

[Kire]

29. it actually has to lower it's prices

I don't want to put out a figure, but I bet a significant number of subscribers are going to opt for the $6.95 plan

This was mandated by one of those politicians, not sure if it was the FCC, or a congressperson or whom.

[Bombtrack]

41. It was free to raise its subscription price since inception, now it isn't by law

I don't get how so many "free minds" here can so willingly swallow the ass backward bullshit that the NAB and Clearchannel have been spewing across America about Satellite Radio and this merger.

[Kire]

42. I'm not sure what you're talking about....

...what did the poster you reply to say about NAB and Clearchannel?

[pattmarty]

48. Show the link to show it can't raise prices. I think you're either.....

.....misinformed, working for or invested in either company, or just full of shit.

[MilesColtrane]

52. In the original post...

"The FCC's commissioners voted by a 3-2 margin in favor of a proposal that would allow the deal to proceed as long as the companies met a series of consumer protection conditions, including a three-year cap on prices,..."

Personally, I could give a rat's ass whether either of these companies survive.

[pattmarty]

53. Well, it just gives a "blanket" promise for 3 yrs that it can't..........

.....raise prices. I am sure that there is or will be in the final "package" a dispensation that if they "need" to raise prices that they can. AND it looks that one Republican member of the FCC had to be "bribed" somehow to go along with the OK. It ain't good for consumers, I don't give a shit what anybody says. AND, I have yet to read anything here that it is good for consumers.

[Psephos]

59. Do you work for a terrestrial radio company? n/t

[pattmarty]

60. What the fuck does that have to do with anything here? I don't.......

....but what if I did? If you want to pay for your radio (like cable or satellite TV) go right ahead, but don't start whining when they raise your rates, and they will, just like the cable, water, electric, AND your radio company. These companies are supposedly broke and the one is paying how many billions of dollars to acquire the other? C'mon, they are going to raise rates faster than you typed your stupid response to my post.

[Psephos]

62. take a look at YOUR OWN post, #47, where you asked the same thing

And they're not going to raise my rates because I'm not a subscriber. The merged company is legally bound by the agreement not only to forgo rates increases for three years, but also to immediately offer a lower-priced tier of ala carte service, at approximately half the current rate.

The way I see it, this is actually a good thing for you, too, because it gives you something to vent over. That's probably salutary on a number of levels.

[pattmarty]

65. Oh, c'mon. You are a corporatist, just fucking admit it.

[thingy]

43. I had to register because I cannot understand why

this merger is a good thing for anybody. Wouldn't the fact that all three Republican FCC commissioners voted in favor while both Democratic FCC commissioners voted against the merger be a sign that maybe, just maybe, this Sirius-XM deal isn't such a hot idea?

[Kire]

44. on this board, I can see how people would think that

but, have you read any of the arguments mentioned in the numerous resources posted above?

if you don't want the service, don't buy it

it's a luxury, it's not like you can't hear all kinds of radio from a hundred different sources, am, fm, short wave, cb, streaming, podcasts, ipods, iphones, muzak (if you own a business).

It would be nice if there were more than one company, but the way it's going, there won't be any satellite companies within a year or two..

not that this is a guarantee or anything, but there are some advantages to keeping a whole bunch of people, from the dj's, to the executives, to the equipment manufacturers and the janitors, employed for a little while longer.

If you're a Democrat, it doesn't mean you have to agree with everything every Democrat ever does. I think I've contributed enough other things on this board to earn the right to disagree with somebody about something.

[thingy]

56. There's nothing wrong with disagreement among Democrats

It's just that in this instance, specifically, the Republicans in charge have been very much in favor if the merger, while the Democrats, at the very least, wanted another look at the situation. Perhaps it's my own problem, but I just cannot approve of a plan that's 100% endorsed by the FCC Republicans and 100% rejected by the FCC Democrats. Had it been a unanimous 5-0 vote, I know I would see less of a problem with it.

[pattmarty]

49. BINGO!!!!! And, welcome to DU.

[thingy]

54. Thank you very much, pattmarty.

It's good to be here after a long time of browsing.

[high density]

50. With this merger there will be less expensive subscription options.

I think that's a good thing.

If anything the Democrats on the FCC seem to be owned by the National Association of Broadcasters more than anything else.

[pattmarty]

51. What???????????????????????

[Kire]

55. "With this merger there will be less expensive subscription options."

"I think that's a good thing.

If anything the Democrats on the FCC seem to be owned by the National Association of Broadcasters more than anything else."

high density

:sarcasm:

[thingy]

57. I know it's all to easy

for the government, even the Democrats, to capitulate to big business and special interest groups. But no matter how messed up the Democrats in authority may get sometimes, their viewpoint is always preferable than supporting the Republican spin. When the Republicans are too eager to support this (or indeed any plan), my suspicions are immediately raised.

[high density]

61. Sometimes the Democrats are wrong as well

Truth is I care little about these two companies or what five commissioners on the FCC say about them. Yes, I subscribe to XM radio but if they vanished tomorrow it wouldn't be a particularly big void in my life. This merger is going to bring lower prices, at least to countless subscribers like me who do not listen to the entire universe of channels that are offered, and I will take that for the three years that have been mandated by the FCC.

[Dont_Bogart_the_Pretzel]

63. Since I have XM... I wonder if I will get "SIRIUS Left"

including THE MIKE MALLOY SHOW?

[MrSlayer]

64. XM's music stations suck compared to Sirius.

Air America might be the only thing worth taking from them.

[LeftofU]

66. Fred is the best station ever..

The sirius version sucks ass.