Print Email RSS RSS  Share del.icio.us Facebook Twitter
Product News
XM & Sirius Deal Almost Done
Companies need to pay $20 million in fines before the merger can be complete.
Sirius XM
The merger will allow for a la carte programming from both services, as well as reduced pricing programs.
July 24, 2008 | by Rachel Cericola

It seems that the FCC may finally wrap up the deal that will merge XM and Sirius Satellite Radio.

The whole thing rests on a lone vote from Commissioner Deborah Taylor Tate. However, The Wall Street Journal says that, in exchange for her vote, both companies will pay $20 million in fines stemming from tower locations and power limits. Both companies have already agreed to other stipulations, including price caps, a la carte channel options, and designating 8 percent of its full-time channels for public interest and minority programming.

Once the deal goes through, the company should have a la carte radios ready to roll within six months. This will allow subscribers to mix and match stations from both services. Other changes will include the option of a $7 monthly plan, which will offer 50 stations from one service, versus the current $13 for the whole lineup. Also many channels may merge or be eliminated to cancel out any repeat programming.

Both satellite radio services first announced plans to merge in February 2007.

 



Rachel Cericola - Contributing Writer
Over the past 15 years, Rachel Cericola has covered entertainment, web and technology trends. Check her out at www.rachelcericola.com.



Article Topics
What's Related
Popular Tags
Social Bookmark   less


Comments (2) Most recent displayed first.
Posted by Rachel Cericola  on  07/24/08  at  04:13 PM

Hey unsure: I am in the same boat as you.

The good news is: Your radio will still work. I am not 100% sure, but I think you will be able to get the reduced plan, as well as your current plan. You will probably have less channels though, since some are going away. They haven’t made any announcements on which ones will get eliminated yet.

The bad news: From what I understand, you will NOT be able to get channels from the other service. If you have XM, you can’t get the Sirius channels and vice versa. For that, you will have to purchase a new unit.

It’s not great, but I think ultimately, the merger is a good thing for subscribers—at least for now.

Posted by unsure  on  07/24/08  at  02:04 PM

So what will that do for those of us that recently purchased a car with xm or sirius built-in?  Will it be obsolete, will we lose stations that we like now that the newly formed company may eliminate but not be able to get there replacement cause we have one or the other radios?  I don’t like that thought of having a more limited selection of stations after the merger or to have to buy another radio that will no longer be integrated into my existing system in my car.



Commenting is not available in this weblog entry.