Boston (EON) – Satellite radio providers Sirius and XM stated on Monday the benefits of a potential merger between the two as many subscription packages could be offered to cut subscription costs by 46%.
This is big news as they continue to try and get their merger approved. Lawmakers have been long concerned that the merger would actually raise prices and also cut down on programming choices which the companies would show to their consumers. Many new packages though would be offered to give the users more choice over their subscription.
One package could allow a customer to pick 50 channels on XM or Sirius for $6.99 a month. If they wanted to add more channels it would be at 25 cents a piece. The current plan is for $13 a month with more than 100 stations including Howard Stern on Sirius.
Sirius Chief Executive Mel Karmazin stated that “We need to build the subscription business base of satellite radio to strengthen our business and better leverage our high fixed costs. We are confident that a lower price point and more programming choices will help us do just that.”
The merger is being reviewed very slowly by the Federal Communications Commission, the FCC.
1 comment for Sirius and XM Show Merger Benefits »
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It is clear that there may be benefits from such a merger, what about the possibility of a monopoly? One opinion I have heard is that a merger may make room for another company/competition…Let’s wait and see.
Comment by Sirius XM ChiKK — July 24, 2007 @ 7:58 am