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Satellite Radio Merger: The Beginning of the End?
Sirius and XM have finally joined forces, but is this good news for listeners?
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November 19, 2008 | by Richard M. Sherwin

I feel really, really bad both professionally and personally that satellite radio is going away. What? You say the merger will preserve the longest running alternative to the slowly dying, little choice over-commercialized terrestrial radio? I don’t think so!

No matter how this transition pans out, satellite radio will never be the same. Last week’s morphing of music and other radio content may do little to prevent the real fans of satellite radio from eventually walking away from the dial.

A few months ago, the Federal Communications Commission and other federal groups gave the final go-ahead to the merger of Sirius and XM Satellite- radio. They waxed poetic that these two companies may not survive the onslaught of other digital music/radio systems. Because of the new devices and the overall migration of radio and audio content to many other venues, this merger did not constitute a monopoly.

And realistically despite my use and admiration (along with 19 million others) of satellite radio, the alternatives including MP3 players, mobile phones with audio capabilities, HD Radio, Internet Radio and hybrid radio services like Rhapsody, Pandora, Last FM now offer plenty of choices that could be better and cheaper. And these alternatives could prove too much competition to make the merged companies a success. And eventually, the XM-Sirius combo may actually be forced to foreclose on more programming.

The Programming
In the merger, the smaller company Sirius wound–up owning the deal. In the last few weeks, many of the marketing and programming people were let go from XM radio…despite the fact they actually started this business. Even with Howard Stern and the NFL, Sirius never caught-up to XM’s subscriber total or unique programming.

Speaking of Stern, whose success almost saved Sirius, he will never earn enough advertising dollars to pay for his lucrative contract. While Stern denies it, don’t be surprised if his former home (CBS) reaches out to the shock jock. It’s not clear yet how many of the too-much-talk/not-enough-music programs will actually survive the merger. Officials from the company claim there will be a general toning down of the obnoxious DJs.

The music channels will fall along the lines of XM’s format - 40s, 50s, 60s, 70s, 80s and 90s. The new combined programming really doesn’t have a traditional folk music channel that would feature the likes of Joan Baez, Cheryl Wheeler or even John Gorka. I was told by Sirius that the Grateful Dead are folk music. There appears to be no difference between the oldies channel and the 60s channel. It’s apparent the classical channels are programmed by a computer with a limited memory. There ARE other composers beyond Bach and Beethoven.

Sources tell me that many of the programmers of other genres, such as rock and pop, were let go. That means different interpretations, fresh and new recordings, and the reason satellite radio was great are also out the door.

What about Subscribers?
Both system’s feeble attempts to convert each other’s listeners are being handled so poorly, subscribers are left in the cold. Recently several consumer surveys and focus groups conducted by private and public entities revealed that people are not signing up for either Sirius or XM when their renewals are due. This despite the fact they feel the $10-$12 monthly fee is fair. Sales through new car purchases are also expected to suffer mightily as the recession slows the auto industry in general.

So consequently, it’s not just one naysayer’s opinion that’s triggering a revolt in the subscriber base. I am and always will be a huge supporter of satellite radio, but myself and other radio authorities are now seeing and hearing some things from these services and their respective business and content practices that are alarming.


Richard M. Sherwin - Contributing Writer
Richard Sherwin is a former syndicated technology columnist and TV/Radio analyst, who has also been a marketing executive with IBM, Philips, NBC and a chief advisor to several manufacturers and service providers.



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Comments (23) Most recent displayed first.
Posted by Fred Fredburger  on  11/20/08  at  11:27 PM

I had both sirius and xm prior to the merger and from what I’ve been able to see (hear really) the only thing that’s changed (music channel wise) is the names and channel #‘s of some of the stations, otherwise content is the same and the merger (which is good for the listeners) has added availability of content to both companies existing subscribers.

The author of this article mentions XM’s “Unique” programing, what was so “unique” about it??

Sure XM had exclusive contracts for certin sports
but then so did Sirius. Sure XM had some exclusive contracts for talk radio, but so did Sirius
(and while I never listened to them didn’t Opey and Anthony go from being on XM “exclusively” to simultanilously being back to FM radio??)

There were “unique” things about both Xm and Sirius and now subscribers have the best of both worlds available to them…... 


By the HSF…..Stern, while still good, was more entertaining in his early day’s when he had to actually be creative, now (most of the time) it’s just one sophomoric bit after the next, with little to no creativity at all.

Posted by Dr sanchez  on  11/20/08  at  12:47 PM

I predict the next brilliant move by Mel Karmizan will be to make a 24/7 Classic Boy-Band channel.  I mean, hey, no one can every get enough “BackStreet Boys” or “New Kids on the Block” right?

Posted by Tim  on  11/20/08  at  10:40 AM

So far I think the merger made things WORSE not BETTER!
Several of the channels I loved are gone. What happened to Beyond Jazz??? Do we really need 24/7 Dead, AC/DC, Zeppelin, Sinatra etc stations? Wasn’t it the VARIETY that can’t be found on the vast wasteland of crap that is FM that made satellite radio attractive in the first place? Next thing you know Clearchannel will buy up xm/sirius and then I’ll go back to playing cds in my car!

Posted by Jim  on  11/20/08  at  09:02 AM

Not only does my XM channel now have some annoying person yakking away about things I have no interest in hearing, the compression levels are now those used by Sirius which destroy any high frequency content such as cymbals.  I am not going to continue my subscription unless they return to the XM channel I enjoyed (Top Tracks) and reduce the compression ratio back to what it was before.  I simply cannot listen to the overcompressed noise they are broadcasting.

Posted by Howard SternFan  on  11/20/08  at  08:52 AM

I only listen to Stern, Soul Town, The vault(or whatever they renamed it), grateful dead and left of center.  When I was listening to regular radio I didn’t have close to this kind of choice.  And while internet stations/websites can provide the music content, they cannot legally provide the stern content.  Anyone who has enjoyed stern on regular radio, and there were many, need to start listening to sirius xm immediately.  The stern show is hands down the most entertaining talk program in history, and it has only got better.  It is only through negative talk like this article that causes great experiments such as a new content delivery system like satellite radio to fail.  It only helps to convince people on the fence not to try it out and see how great things can finally be.


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