SIRIUS CEO Karmazin: Parents will not have to pay for Howard Stern

Mel Karmazin, CEO of SIRIUS Satellite Radio, announced today that parents who are offended by programming such as Howard Stern will recieve a decrease in programming costs after the XM-SIRIUS merger.

“There would be a cost reduction to their bill in a more a la carte way,” said Karmazin. “If somebody doesn’t want it, not only are they not getting it, but they’re not subsidizing it either.”

This announcement comes after FCC Chairman Kevin Martin has publicly expressed interest in having of an a la carte programming system. Previously, Karmazin has said that Satellite technology will not allow for such programming choices but it seems that instead of customers paying more for the Howard Stern service(a la carte style), customers will have the choice to remove Stern from their radios and recieve a price cut in the monthly price of the service. Karmazin also noted that these details were included with the FCC merger notice filed on Tuesday.

This decision by the merger corporations could not only influence the FCC to approve the merger, but could influence other services such as cable television to do the same type of program discounting.

Dan Isett, a spokesperson for the Parents Television Council, who also supports such a la carte programming said, “This is good news, but we want to see the details. The problem they face is why should consumers be forced to subsidize Howard Stern if they want Major League Baseball?”

How do you think this will affect the FCC decision to approve or dissaprove the XM-SIRIUS merger?

Source: Dow Jones Newswire



Comments:

  1. So if people don't want Stern get a descrease...well, I think we know where this is going! Mel is just tripping all over himself. When I heard about this new music system which was going to have satelite radio I was a little less leary about the merger because SiriusXM needs some competition! But now I'm off it again!
  2. I don't think the merger is going to go through, but much like the guy in the article, I want to see the details.
  3. Won't somebody think of the children??????


    And the pussification of America continues. This is become a sad, pathetic country.
  4. Quote:
    Originally Posted by badmotherfarker View Post
    Won't somebody think of the children??????


    And the pussification of America continues. This is become a sad, pathetic country.
    I think its more about protecting the lazy parents then it is the kids.

    You need a license or have to pass a test to do just about anything in this country, except being a parent. Any idiot is allowed to get that job, whether they are capable or not.
  5. I've got 2 kids and Stern's the only reason I signed up for Sirius. Does this mean I will get it for free?

    I don't want Baseball, Hockey, or Basketball nor the 30 other talk stations after RawDog. What kind of a discount can I get for those?
  6. Quote:
    Originally Posted by TheScionicMan View Post
    I don't want Baseball, Hockey, or Basketball nor the 30 other talk stations after RawDog. What kind of a discount can I get for those?
    I agree with you on this one. I could care less about sports, yet I will still have to pay for them.
  7. I am just amazed that one man can turn a whole industry upside down. I wonder how many of those at the hearing today are in that little black book that has every crapping? The poor kids.
  8. Quote:
    Originally Posted by Markz View Post
    I am just amazed that one man can turn a whole industry upside down. I wonder how many of those at the hearing today are in that little black book that has every crapping? The poor kids.
    Really makes you wonder doesn't it? The 2 satrad companies combined amke less in a year than Clear Channel alone does in a quarter and the knobs at NAB are pulling out every big gun they can find to fight these guys.

  9. Must they cater to these imbeciles demands? Are they totally oblivious to the fact that EVERY single SIRIUS receiver includes built-in parental controls? Are these people completely incapable of taking five seconds of their precious time and blocking the channels they deem "inappropriate" for their children or are they simply too stupid? This will only accomplish one thing -- the complaints will deviate from Howard and move to Raw Dog, MAXIM Radio, and the uncensored music channels. These piss poor parents they're doing this for don't even deserve satellite radio (or children!) in the first place.

    And why the hell can't I get a discount for having to endure Margaritaville, the Christian channels, LIME, Kids Stuff, Disney Radio, Martha Stewart Living Radio and whatever else I can't think of at the moment?! What the fuck makes these people so special that they get differential treatment? I'm special too dammit! Give ME a discount!! Hey, if I go out right this moment and impregnate a women can I get a discount as well if I solemnly swear to use my television as a babysitter and expect the world to revolve around my future offspring?



    Quote:
    Originally Posted by badmotherfarker View Post
    Won't somebody think of the children??????

    And the pussification of America continues. This is become a sad, pathetic country.
    Yes, yes it has.

    ---->
    The very personification of who they're bowing down too.
  10. there's already parental controls on every radio. it's pretty transparent that he's just using the parents excuse to set the groundwork for making Howard a "tiered" channel. 1-2 years down the road they set the "non Howard" price to 12.99 and "Howard price" to 15.99 or something. i'm loathing this merger idea more and more.
  11. This is NOT looking good... and people wonder why I'm against this merger..
  12. I don't want to pay for all of the religious and right wing crap, where's my discount Sirius?
  13. There's plenty of stations I don't currently listen to...where's my discount?

    If lazy-ass parents want to protect their precious little bundles of joy use the freakin' block button!
  14. I dont want to listen to latin, gay channels and those crybaby liberals... where's my discount??
  15. Seems like every day Mel has some new twist on this merger. I don't believe any of it. The only way we see benefits from this merger is the FCC making Mel put these concessions in writing and then holding him to it.

    The more confusing it gets, the less likely that the merger goes through. Mel and company need to quickly come out with a clear, concise statement on what the new company will look like and what it will offer, or this merger is going to go down in flames.
  16. Quote:
    Originally Posted by JollyJester View Post
    I dont want to listen to latin, gay channels and those crybaby liberals... where's my discount??
    Now that's funny.....this whole question about being able to opt out of receiving Stern was being pushed by Sam Brownback and Orrin Hatch, two of the biggest right wing, conservative poster boys out there. I don't think this is the argument where you want to make it a liberal vs. conservative issue or you'll most likely find that you fall on the left side of the argument..and I'm sure you wouldn't want that...
  17. I don't want to pay for Republican Propaganda, so why should I pay for Fox News or Fox Talk? I don't mind paying for Sirius Patriot because they're honest about their agenda.
  18. wait... am i to understand that some republicans are saying the only way this merger would get their stamp of approval would be if they made it extra for Howard?

    first, that seems ridiculous on its face. i understand howard's influence but how can they really regulate how sirius is going to operate their business on a tier level? there are already lock controls and hiding features on every radio that make it potentially easier for kids to use their parents gun than listen to dirty jokes on a stiletto. that to me seems like a great solution in the consumer's interest and any other government mandating of content seems like it defeats the whole purpose of satellite radio.

    more likely is this is doublespeak for making Howard a "tiered" channel.

    ie: "we're not going to raise prices FOR howard, we're going to LOWER the price of those without Howard, (and then later raise the price for everyone.) that should make YOU happy, FCC... right? right??"

    my concern with the merger is that if it goes through there really is no other option pricewise.
  19. Well, it all comes down to one thing. Regulation.

    If this goes through it will be with heavy governmental regulation. Regulation will be the only way to enforce these price commitments that Mel is making.

    Once you invite regulation do you really believe it will ONLY be regulation of pricing forever? I don't. The regulators need to justify their budget and justify increases in their fiefdom. This means we WILL end up with content regulation if we end up with any regulation.

    Keep regulation out of satellite radio. Keep competition in satellite radio.
  20. This merger means much more than any minor regulations. Remember satellite radio is still a PAID subscriber enterprise, and we still have freedom of speech in this country. Stern as an option to those who don't want him, is just an extension of that free speech. Mel is a genius in my opinion.
  21. This merger means much more than any minor regulations. Remember satellite radio is still a PAID subscriber enterprise, and we still have freedom of speech in this country. Stern as an option, to those who don't want him, is just an extension of that free speech. Mel is a genius in my opinion.
  22. Quote:
    Originally Posted by hazzar View Post
    This merger means much more than any minor regulations. Remember satellite radio is still a PAID subscriber enterprise, and we still have freedom of speech in this country. Stern as an option, to those who don't want him, is just an extension of that free speech. Mel is a genius in my opinion.
    i don't think anyone's saying this violates free speech. am i missing something??
  23. People seem concerned that some will pay less, by opting out of Howard 100/101. I don't see any problem with that.
  24. my concern is not with the immediate, but the doors it opens up in the future. it's in essence making Howard a tiered option, something that he was against from the initial contract.

    who is to say that sirius, once merged and a year down the road, won't say "ok, the 'base price' is going up to 12.99-- the price with howard is going up to $17.99"

    there's no real way to regulate that, and if you as a consumer think "aaah, eff sirius, i just want some music without commercials" they can then come back and say "WHERE ELSE ARE YOU GONNA GO!!! YOU NEED US NOW, MUWAHAHAHAHAHAHAHAAAA!! ....now then.... that'll be 12.99 for less than you had pre-merger"
  25. What if for $17.99 you got all of Sirius's current programming PLUS the best of what XM has to offer??
  26. Quote:
    Originally Posted by dkain1976 View Post
    who is to say that sirius, once merged and a year down the road, won't say "ok, the 'base price' is going up to 12.99-- the price with howard is going up to $17.99"
    What happens if Howard retires in three years? What then?
  27. Quote:
    Originally Posted by Markz View Post
    What happens if Howard retires in three years? What then?

    exactly! then they can say "well... since 12.99 was a DISCOUNT for not choosing howard and he's no longer an option... your rate's gonna go up to the 'normal' rate of 17.99"

    although i can't see Howard ever retiring. but great point.
  28. I honestly don't think he will, and by then, he may be irrelevant anyway. It depends on the job he does in the next four years.
  29. According to an AP story one hour old, Sen. Herb Kohl, D-Wis., questioned Karmazin's stance during a hearing that the combined company would face competition from terrestrial radio, MP3 players and Internet radio.

    I immediately drafted the below letter and sent it to him on his website.
    ________________

    Senator Kohl,

    I could sit here and waste time for both of us by detailing the complexities of the technological realm, but I'm not going to. What I would simply like to do is offer my support for the Sirius/XM merger. As an avid fan of music, I have downloaded music off of the internet since 1999, burned custom cd's since 2000, worked on car audio equipment in 2002, subscribed to Sirius Satellite Radio in early 2003, purchased an iPod in 2004, and listen to streaming audio feeds and podcasts from the internet quite often.

    I would like to express my strongest assurances to you that satellite radio faces stern competition against all of the listed sources of music, and any others mentioned to you by Mel Karmazin this past week.

    One of many ideas that comes to mind is the nature of music and sound. It is something that is listened to - so unlike computer software which can control the environment of the user, listeners of music control how they wish to hear audio. Almost anything that projects music can face equal competition against a device that can play audio.

    If XM & Sirius merge, they won't have a monopoly on their market; the idea that 'satellite radio' IS a market is a farce - it literally does exist on paper, yet theoretically it does not exist in practice due to the free will of our citizens to choose how to hear music in nation that upholds this freedom.

    Please support the merger, you will be doing a favor for music and citizens of the United States, as you will only be helping strengthen one of many available choices to listen to music for the American consumer.

    Whether it is relevant or not, as a current Sirius subscriber, you will doing me a favor as well.

    Most Sincerely,
    [my full name]
  30. man, good letter. but i disagree so i guess i'll have to send an opposing letter to my guy now.

    also, kinda off topic.
  31. Excellent letter. I think there are millions of voters out there who would echo those sentiments. I don't see why anyone would be against the merger.... unless they are a card carrying member of the NAB.
  32. Quote:
    there's already parental controls on every radio. it's pretty transparent that he's just using the parents excuse to set the groundwork for making Howard a "tiered" channel. 1-2 years down the road they set the "non Howard" price to 12.99 and "Howard price" to 15.99 or something. i'm loathing this merger idea more and more.
    That's the first thing I thought of.
  33. i just tried composing a letter opposing the merger because of all of the reasons i listed, but kinda felt like a dork so i stopped.
  34. also, for hazzar and for the record. i'm pretty vehemently opposed to this merger and not a member of the NAB nor do i listen to most terrestrial radio. the only times i've ever heard of the NAB was on Stern and this forum. i just love satellite radio and can see a merger leading to Sirius having us by the balls.
  35. You are already by the balls, financially. If this merger doesn't go through, you will have much less quality programming, and more commercials.
  36. Quote:
    Originally Posted by hazzar View Post
    You are already by the balls, financially. If this merger doesn't go through, you will have much less quality programming, and more commercials.
    Yep. Charge more for the service to not go belly up and people will cry and cancel. Add more advertising to not go belly up and people will cry and cancel. Stop spending money on premium content to not go belly up and people will cry and cancel. The only thing for Sirius to do which will be fair is to go belly up so then everyone is crying.
  37. Can I save a buck a month if I get rid of Radio Korea ? I don't understand a word they're saying.
  38. first the argument was the merger would make a subscription less money. then it was it'll be less money than TWO subscriptions. now it's it'll be less money without howard.

    look, if they charge more per sub that's fine-- they'll probably see some people jump ship but at least those people will have somewhere else to jump ship TO. the idea that there's another option for satellite radio (commercial-less music programming and uncensored talk radio) keeps each other competitive. if they're "competing" with formats that don't have either of those things (ipods don't program themselves, and terrestrial radio is censored), there's less choice for the consumer.
  39. Wal-Radio
  40. And where will they jump ship to? I don't think XM will be around too long without the merger. The best thing now is to pool XM's resources now and work together.
  41. Quote:
    Originally Posted by hazzar View Post
    And where will they jump ship to? I don't think XM will be around too long without the merger. The best thing now is to pool XM's resources now and work together.
    as was said before on here, there are tons of people in line waiting for one of these businesses to fail so they can scoop it up. another company could take the XM brand and probably make it work. the fact that it would be all one company and not even room for another competitor is what makes the merger unappetizing to me. it looks to me like Slacker's satellite capabilities are going to be extremely limited, so i'm not sure if that can be considered competition. but if it can, and if it opens the door to more similar premium radio services that will compete on the same level as sirius and xm, then i'm all for the merger.
  42. Quote:
    Originally Posted by TheScionicMan View Post
    I've got 2 kids and Stern's the only reason I signed up for Sirius. Does this mean I will get it for free?

    I don't want Baseball, Hockey, or Basketball nor the 30 other talk stations after RawDog. What kind of a discount can I get for those?
    Excatly. I don't want most sports...I would like baseball if that happens but that's it. I want Stern, the poltical channels (which aren't even that important) and Music. And Radio Korea, of course.

    Sounds like Mel is in panic mode with this stunt. It's not going to happen unless they can stress that upcoming satellite radio thing that's coming on the scene or stick to their guns with one price, etc.
  43. Quote:
    Originally Posted by VinnyM27 View Post
    Excatly. I don't want most sports...I would like baseball if that happens but that's it. I want Stern, the poltical channels (which aren't even that important) and Music. And Radio Korea, of course.

    Sounds like Mel is in panic mode with this stunt. It's not going to happen unless they can stress that upcoming satellite radio thing that's coming on the scene or stick to their guns with one price, etc.
    I don't think it is panic mode at all. Have you listened to the 3 hearings? What stunt? Are there transcripts to the last two hearings? I only caught half of the last two and me thinks things are getting twisted here.
  44. If Mel does this with all of the channels,does this mean I can buy a Stilletto as a second subscription and just get Howard 100/101 for $.50 or less a month
  45. Which tier will the "Who Gives a Shit" channel be on?
  46. Hazzar I am wondering something. Are you a stockholder of either Sirius or XM ?
  47. If you really think one of these companies WON'T be around if the merger fails, you are dead wrong. I'd pay for ala carte sports programming and forget the rest. If one company or the other fails, how appealing would satellite radio look to ESPN? ESPN could offer all of their channels plus scarf up all of the sports leagues/conferences and they would have something that rivals or surpasses their growing TV empire. ABC could offer a few music and entertainment channels on the service. The leftovers such as FOX Sports Radio and SNR would be left to the rival service provider.
  48. And there would be no guarantee that if a new company bought the assets, that they would keep the existing programming or honor existing sub rates/plans. If there's uncertainty about the after effects of the merger, there's got to be more uncertainty over some new company buying the assets...
  49. Quote:
    Originally Posted by gridironmike View Post
    If one company or the other fails, how appealing would satellite radio look to ESPN?
    Doubtful with their cell phone partnerships. SatRad just isn't that appealing with new media and expanded networks from the cell companies which are more and more providing live content. How many SatRad subs are there? And how many cell users are out there? Again, another one of those cases where it's silly to think that SatRad has no competition and this merger would create a "monopoly". Yes, it creates a single SatRad company, but it certainly doesn't create a monopoly.
  50. if it doesn't create a monopoly, where else can you get uncensored talk radio and preprogrammed commercial-less music? i'd like to look into those other options.

    last night i was walking home from the bar and popped on my stiletto with the luxury of knowing whatever msuic channel i turn to immediately 100% GUARANTEED won't have a commercial on it. it felt amazing.
  51. Oh - Right...

    I remember when I was first looking into Sirius and XM... and Sirius had the flat rate that they do now, while XM had a rate under $10 for music and talk, then another $3 if you wanted the internet feed, then another $2 if you wanted O&A (because you shouldn't have to pay for O&A if you weren't going to listen, or didn't condone their actions)...

    Then XM went to a flat rate that was in line with Sirius, and included the internet stream with that price (and even O&A if memory serves me correctly... )

    After that - I remember looking at Sirius' "propaganda" page, where they were basically saying our prices have never changed, and our competition tried the a la carte option, but it failed miserably, so they had to change it to Sirius' pricing structure...

    Right now, you pay for everything that your chosen service has to offer you (although, with the 128 channel limitation on Sirius, that's not entirely true either... no one mentions the current lost channels on *older* radios)... Right now, there is a choice based on quality and quantity of (good) content...

    If either company wanted to change their pricing structure, it's obviously possible for them to do it. XM has done it in the past, and Sirius could do it without a merger (since the merger is incidental to a la carte pricing, and Sirius currently requires an 'activation signal' to get access to the Playboy channel, the theory extends they can do this with more channels)...

    An XM and Sirius merger would cause a Sat. Rad. monopoly... Would it cause a 'listening' monopoly, absolutely not... Yes, FM, AM, MP3 players, CDs, etc. all exist, and they all take away from listening to Sat. Rad. - but there are only 2 places to go right now where I can get nationwide (commercial free) access to stations where the content isn't regulated by government and doesn't require me to 'preload' what I want to hear...

    Sirius is a great choice... XM is a great choice...

    Combined, there is only one choice...

    And personally, I don't see the sum being greater than the parts...

    ----
    Current Satellite Radio Equipment:
    Sirius Stiletto S100
    Pioneer SIR-PNR
    Sirius S50
    Delphi SkiFi 2
  52. Mergers do mean one thing, take anyone - like the recent Hewlett Packard/Compaq merger, GIANT tens of millions to hundreds of millions in bonuses for those executives that make it happen. G.I.A.N.T.
  53. Quote:
    Originally Posted by yg17 View Post
    I don't want to pay for all of the religious and right wing crap, where's my discount Sirius?
    I don't want to pay for all of the non-religious and left wing crap. Where's my discount Sirius?
  54. I don't know why the Parents out there are complaining about Howard Stern when they can just block it on their radio so the kids can't listen to it.
  55. Quote:
    Originally Posted by stonecold756 View Post
    I don't know why the Parents out there are complaining about Howard Stern when they can just block it on their radio so the kids can't listen to it.
    It was brought up by two republican conservative congressmen, not so much by a bunch of parents.

    As everyone else has said there are controls to block any channel you don't want, but I guess Mel needs to spin it so that people that are offended by the thought of Howard can have a way to not have to pay for him and listen to satrad guilt free.
  56. ala carte is the best thing for Satellite Radio. The CEO's would then find out how many people really listen to Stern, how many people listen to Martha Stewart, how many people want the Korean channel.

    My guess is many of these "high paid talk show host" and useless other channels would get the boot. The customer would have more bandwidth available, lower cost for its customers because of a lower overhead expense, and a Satellite Radio product thats driven by listener demand.

    oh my,,, the fear and thought of ala carte.... BRING IT ON!!!
  57. It would be great if they offered us the chance to subscribe to what we want.

    Imagine: 100 Music Channels, Talk and News for $9.95
    add NFL for $2 a month
    add MLB for $2 a month
    add NBA for $2 a month
    add NHL for $2 a month
    add College Sports for $2 a month
    add all Sports for $7.95 a month
    add Howard, Bubba, Opie and Anthony and Playboy for $7.95 a month
    Get it all for $21.95 a month

    Then we would see what people were really willing to pay for.
  58. Quote:
    Get it all for $21.95 a month

    Then we would see what people were really willing to pay for.
    F-that - I get it all now for 12.95 a month. Its sounds great on paper but I bet the reality is they split it just like TV where to get what you want you end up paying more. They will give you a music package but leave some of the better channels out. Forcing a tier upgrade. Or they'll offer all the news but say Fox and force you to get Fox with more money.
  59. Quote:
    Originally Posted by RoadClosed View Post
    F-that - I get it all now for 12.95 a month. Its sounds great on paper but I bet the reality is they split it just like TV where to get what you want you end up paying more. They will give you a music package but leave some of the better channels out. Forcing a tier upgrade. Or they'll offer all the news but say Fox and force you to get Fox with more money.

    Your not getting 100 Music Channels and the NFL and MLB and O&A and Howard for $12.95 now.
  60. I listen to 2 music channels, H100/101 and Nascar. I am overpaying as is.
  61. Quote:
    Your not getting 100 Music Channels and the NFL and MLB and O&A and Howard for $12.95 now.
    OK Fair enough.

    To get a couple more music channels, MLB and that crap called Opus and Anthony I have to may an extra 10 bucks? I get Howard, almost 100 music channels, NFL, Nascar, ESPN, Fox, BBC ... and the list goes on. But I see the point in tiered programming. I am just saying that I would bet 100 percent that to get what I have now would cost more in a tiered system.
  62. Quote:
    Originally Posted by RoadClosed View Post
    OK Fair enough.

    To get a couple more music channels, MLB and that crap called Opus and Anthony I have to may an extra 10 bucks? I get Howard, almost 100 music channels, NFL, Nascar, ESPN, Fox, BBC ... and the list goes on. But I see the point in tiered programming. I am just saying that I would bet 100 percent that to get what I have now would cost more in a tiered system.
    I say people stop giving yourselves ulcers trying to figure out what will happen down the road.

    And giving me an f-ing headache.
  63. I'm actually a fan of tiered pricing but I want to see it in cable as well. I'd toss 80% of the channels I receive and save a bundle.

    I don't like that Howard is being singled out. But, I guess that's his role as the SatRad poster child. But, if they do embrace this strategy then it should not stop with just Howard. It should be true-a-la-carte. Every channel should be optional.

    I don't like sports, Savings $10.
    I don't like political talk, Savings $2
    I don't want Maxim, Playboy, Oprah, Martha, Stones, Savings $10
    I don't want the Foreign Language Channels, Savings $3
    I don't like Rap, Hip-Hop, 90's, Top-40, Savings $5
    Savings = $30/month
    Less Monthly Subscription (estimated) -21.99
    Sirius pays me $8.01/month to subscribe

    That sounds good to me!
  64. I mean on my stiletto 10 I listen to howard100/101 and all the hip-hop channels and pure jazz and NFL radio.
  65. Quote:
    Originally Posted by TheScionicMan View Post
    I've got 2 kids and Stern's the only reason I signed up for Sirius. Does this mean I will get it for free?

    I don't want Baseball, Hockey, or Basketball nor the 30 other talk stations after RawDog. What kind of a discount can I get for those?

    Great, I don't want Martha Stewart, MLB, any religious programming, or any top 40 crap. Do I get a discount if all I want is Howard, Classical, everything from Buzzsaw through Punk, and NPR?
  66. Quote:
    Originally Posted by srm59 View Post
    Every channel should be optional.

    I don't like sports, Savings $10.
    I don't like political talk, Savings $2
    I don't want Maxim, Playboy, Oprah, Martha, Stones, Savings $10
    I don't want the Foreign Language Channels, Savings $3
    I don't like Rap, Hip-Hop, 90's, Top-40, Savings $5
    Savings = $30/month
    Less Monthly Subscription (estimated) -21.99
    Sirius pays me $8.01/month to subscribe
    It will never be tiered to that degree. In my opinion you'll have adult programming and sports tiered... maybe talk... but I doubt it.

    So if you want to opt out of adult or explicit language channels you may save a buck or two. If you aren't interested in NFL, NBA, MLB, NHL, and college sports you may be able to opt out of that and save some money. But I just don't see them allowing you to pick and choose every channel you want or don't want. I do not see music being tiered at all, except those channels that have explicit language will be removed from if you opt out of the adult programming. They already do this if you call, but you get no discount for its removal.

    But overall I think the tiering may have to do more with the programming made available between SIRIUS and XM more than specific channels. We'll see!
  67. I specially got Sirius for the OUTQ channel.

    Yeah and wheres my discount so I don't have to pay for the "Holyier than thou" channels.
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