How Can New Satellite Radio Merger Analysis Be 'Independent' When The NAB Paid For It?
from the curious-how-that-works dept
Research firm, The Carmel Group, has come out with a new report that supposedly tries to show why having XM and Sirius merge would be bad for consumers. The group also put out a similar report back when DirecTV and EchoStar tried to merge -- and some credit that report with killing off that merger. What the report apparently tries to highlight is that as Sirius and XM competed with each other, they continually tried to one-up each other with new features and services -- thus suggesting that competition between the two was strong. Now, obviously, we feel that competition like this does drive innovation, but it brushes aside the fact that competition also comes from terrestrial radio, iPods and other forms of entertainment. The folks over at Orbitcast point out that they could just as easily create a report highlighting how terrestrial radio has changed as it competes with satellite radio as well. Still, the silliest thing about this "research" is that the press is reporting that this is an "independent" report -- despite being funded by the NAB. We've already covered some of the dirty tricks the NAB is pulling in trying to prevent the merger, but to call a report that they funded "independent" isn't exactly realistic. The group is squarely against the merger, though the stronger they come out against the merger, the weaker their argument is. If they really believe that satellite radio doesn't compete with terrestrial radio (who the NAB represents), then why are they so concerned about the merger? If it would really lead to higher prices for consumers and less service, wouldn't that be a good thing for terrestrial radio? It would mean that more people would stick with good old fashioned terrestrial radio rather than bailing for satellite radio.
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Radio
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Re: Radio
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Let it Be
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xm/sirius merger
i've been a subscriber since early 2002 and if i wanted any sirius content i would subscribe to them as well as i listen to xm for 60 hours weekly (i drive a truck)....
karmazin's network is a dog literally....
he's paying howard 100 million a year for 15 million in revenue not counting stock, shrewd business to the max....
i don't think it's going to happen because both stocks are heading south...
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Chris ?
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David vs Golliath
SAT requires more capex, but then they have substantially lower operating costs by centralizing operations. The quality is more predictable (digital meaning you either get the signal or you don't) and also a common operating platform for the two rivals makes a lot of sense.. XM/Sirius is also digital format, and by being digital, they can offer content that is not only audio... Stock quotes, news updates, and song titles scrolled across the screen when they first launched.
While this tech existed prior to XM/Sirius, FM stations didn't start implementing until Sat providers started using it as a competitive (read: value added service) advantage. But at it's core, it's a battle between digital vs analog... Because it's digital, Sirius can offer more than the analog players can. Recently, they said they are also going to start ofering TV, and the FM players just can't play catchup that quickly. Sure they just started implementing HD Radio, but those lower operating expenses really play into XM/Sirius's favor.
Once it hits critical mass, its not tough to imagine more commercials, which could subsidize the entire business- free recievers and the whole gammut. I would like to hedge a bet that this is what NAB etal are really afraid about.
We need more companies that challenge Goliath and keep the innovation going.
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you do know that 15 million in revenue is about 100,000 subs. are you saying that when howard announced sirius was at 1m subs and they are now at 6m+ that only 100,000 people signed up. LOL and you claim he has shrewd business abilities.
1m at least. 1m x 12 months x 12 bucks = 144m
2m at least. 2m x 12 month x 12 bucks = 288m
3m at least. 3m x 12 x 12 = 432m
also how much of the 6m got sirius because of the BRAND name that howard made sirius. they went from a brand name recognition of 30% to xm 70% to a better then 60/40 split
http://www.bridgeratings.com/press_03.28.07.Sat%20Study%20Q1.htm
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My 2 cents
Dear Olde Timey Radio,
I don't mind paying a few bucks a month to actually listen to music (what a concept) and to have more than one local station playing each genre of music. What really made me change was that you've forgotten why adults listen to you.
I ***LOVE*** that I can get current traffic and weather every 5 minutes from Sirius. I'm not really sure what value is provided when the local radio stations only read the traffic once an hour during the morning and afternoon rush. Even in a big city most people are either already at their destination or hear about problems too late to change their route.
If you want to get serious (no pun intended) about competing then provide me something I can use. Scrap a few minutes of random DJ filler every hour and give me traffic updates every 5 or 10 minutes.
Until you provide me with a service I can use I'll stick with Sat radio thank you very much.
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Wana see what carmel group said last year- BUSTED!
http://www.orbitcast.com/archives/busted-carmel-group-has-already-defined-satellite-radio s-competitors.html
in a Carmel Group article written in October 05, 2005:
"...satellite radio, with more than seven mil. subscribers, and its competition comes in the form of traditional analog AM & FM radio, as well as burgeoning services like MP3 players, terrestrial radio, and video- and Internet-to-the-vehicle. "
now after BEING PAID BY THE NAB
"Sirius and XM make an argument that is critical to the success of this proposed merger. They state that their competitive landscape presently includes all forms of terrestrial radio (i.e., analog AM and FM, digital HD and Internet radio), as well as digital services such as MP3 devices and music-to-cellular telephones. This position is ludicrous. In fact, nothing could be further from the truth."
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