XM & Sirius Consider Merger
For the full story go here.
Heck I’ve had XM for close to two years, and I’ve said from the beginning that these two companies ought to merge. There is no reason why they shouldn’t, and there are a lot of reasons why they should.
1. The market for satellite radio right now is somewhere at 13-14 million subscribers. In the big scheme of things this isn’t much. By combining the companies and therefore 13-14 million subscribers who are willing to pay for content rather than fluff, a merged XM/Sirius could start to compete with traditional radio.
2. By combining companies, the resulting company could focus on improving content. Both companies suffer from stagnant content on some channels. While I can understand trying to grab contracts like Howard Stern and Oprah from a business standpoint, both companies paid more than these people are worth from a content point of view.
3. I think there is an honest opportunity here for a combined company to open up a couple of channels for independent content such as podcasted audio books, independent music labels, independent news, etc. Not only does it help the authors of independent content by broadening their market and therefore their potential appeal, it also will attract niche customers who actively listen to programs such as these and who are stuck using an MP3 player etc.
4. Pretty soon, both companies combined or not will start to have more advertising (It’s all about the cash flow). A combined company could focus on what advertising they would actually allow, rather than two separate companies who would be fighting each other for advertising content and costs.
Just a thought.