Although Sirius’ own Mel Karmazin has been the public face of the merger, today’s “Saturday Interview” at the New York Times features XM’s Chairman, Gary Parsons, and President and acting CEO Nate Davis on the topic of the merger.  There is some interesting bits in this short article.

http://www.nytimes.com/2007/09/15/business/15interview.html?_r=1&ref=business&oref=slogin

My favorite line came from Mr. Parsons about the NAB’s opposition. He said, “The most extraordinary thing has been the visceral nature with which the N.A.B. jihad has progressed against the merger.”  He certainly isn’t one to hide his true feelings!

They also deal (somewhat superficially) with channel availability and pricing, post merger, with Davis saying, “You will be able to pick the channels you want, all at various prices. That’s not something we can do if we do not merge. “[Emphasis mine]

Overall, a good read.

Jim Cramer from the CNBC show Mad Money was interviewed by thestreet TV and here’s a quote from the interview:

“If you look at the economics of this Sirius-XM deal,
My god you go from being unprofitable to profitable like that “

Check out the video here, the Sirius-XM discussion starts at about 2:04 into the video.

Video - Cramer Interview

According to Wikipedia, In 2007, NewsBios.com named him one of the 100 most influential business journalists in the United States.

Do your own research before investing.

The FCC Chairman Kevin Martin expects a vote on the XM-Sirius merger by the end of the year and reiterated that today when speaking with reporters. According to Bloomberg:

” Martin said the FCC is trying to meet its goal of deciding on pending mergers within 180 days. The agency began its XM- Sirius merger proceeding on June 8, which puts the FCC on schedule to rule by Dec. 6.

“That’s our target,” Martin said today while speaking to reporters. The agency has exceeded its 180-day guideline when reviewing large transactions. “

They will still need to wait for the antitrust division of the Department of Justice to make it’s decision, but as we reported Here last week, that decision may be coming within 30 days.

SIRI stock was up 4.75% at 3.31 with XMSR up 3.18% at 13.62.

RBC Capital analyst David Bank has told clients to expect a decision from the Department of Justice within 30 days and that the deal is more likely to receive their approval than not. This isn’t the final decision as the FCC will also need to rule, but given the announcement of tiered pricing plans which the current FCC chairman favors, it is unlikely they will vote contrary to the DOJ’s decision.

The Stock is reacting positively to this breaking news:

It’s no secret that Sirius and XM have been getting a fairly impressive amount of support for the proposed merger with more the 4300 individuals and 30 organizations, and now they can add former FCC chairman Mark Fowler to the list. Fowler was FCC chairman during the Reagan administration and has the distinction of holding that post longer than any other person in history of the FCC. For this reason his opinion would naturally have more influence than the average supporter.

It’s starting to feel that some momentum is building in favor of the merger, and the stock has been rewarded by rising over 8% over the last 3 trading days. Sirius and XM expect the merger question to be settled by the end of the year.

(more…)

Based on some member comments, I’ve pulled together this list of Members of Congress who have made public statements in opposition to the merger.  Before anyone accuses me of a bias in the contents of this list, I based all the information off of the actual letter sent to the FCC on their behalf (found here), as well as some of the news coverage.  It appears that members of the minority party didn’t find it helpful to include their affiliation, but I don’t know that all the members in this list without a noted affiliation are Republicans.   You should also not read anything into the ordering of the list.

If you know of others who should be on this list, find mis-spellings of names, or if you know the affiliation/home state of any missing members, just PM me and I’ll update the post.  Thanks!

(Photo is New York Congresswoman Kirsten Gillibrand of the Fighten’ 20th district)

Bart Stupak (D-MI)

Steven LaTourette (R-OH)

Gene Green (D-TX)

Jim Sensenbrenner (R-WI)

John Conyers (D-MI)

Steve Chabot (R-OH)

John Spratt (D-SC)

Dennis Kucinich (D-OH)

Dennis Hastert (R-IL)

Charlie Wilson (D-OH)

Melissa Bean (D-IL)

Jim Matheson (D-UT)

Diane Watson (D-CA)

Steve Rothman (D-NJ)

Leonard Boswell (D-IA)

Lynn Woolsey (D-CA)

Gabrielle Giffords (D-AZ)

Tim Walz (D-MN)

Allen Boyd (D-FL)

Kristin Gillibrand (D-NY) (Name is misspelled in the letter! Real professional, NAB :rolleyes:)

David Scott (D-GA)

Baron Hill (D-IN)

Zach Space (D-OH)

Shelley Berkley (D-NY)

Eddie Bernice-Johnson (D-TX)

Lois Capps (D-CA)

John Spratt (D-SC)

Greg Meeks (D-NY)

Nick Lampson (D-TX)

Nancy Boyda (D-KS) (Name is listed but there is no signature…)

Charlie Melacon (D-LA)

Collin Peterson (D-MN)

Ciro Rodriguez (D-TX)

Bart Gordon (D-TN)

Mike Ross (D-AR)

Tom Allen (D-ME)

Marion Berry (D-AR)

Earl Pomeroy (D-ND)

Ed Pastor (D-AZ)

Betty McCollom (D-IL)

Lacy Clay (D-MO)

Mike Michaud (D-ME)

Louise Slaughter (D-NY)

C.A. Dutch Ruppersberger (D-MD)

Stephanie Herseth Sandlin (D-SD)

Joe Donnelly (D-IN)

Michael Arcuri (D-NY)

Nancy Boyda (D-KS)

Albert Wynn (D-MD)

Collin Peterson (D-MN)

Michael Capuano (D-MA)

John Barrow (D-GA)

G.K. Butterfield (D-NC)

Louis Gohmert

Greg Walden

Lee Terry

Jim Jordan

John Duncan

Scott Garrett

Tom Cole

John Culberson

Cathy McMorris Rodgers

Dan Burton

John Boozman

Dan Manzullo

David Davis

Bob Goodlatte

Marilyn Musgrave (R-CO)

Spencer Bachus

Joe Wilson

Zach Wamp

Ray LaHood

Mark Souder

Frank LoBiondo

Gary Miller

Roy Blunt

XM and SIRIUS to Offer A La Carte Programming

Companies’ FCC Filing to Detail Array of New Offerings Priced From $6.99 to $16.99 SIRIUS CEO Mel Karmazin to Discuss at National Press Club Address Today

NEW YORK and WASHINGTON, July 23, 2007 /PRNewswire-FirstCall via COMTEX News Network/ — SIRIUS Satellite Radio (Nasdaq: SIRI) and XM Satellite Radio (Nasdaq: XMSR) announced today that the merged company will offer American consumers for the first time the opportunity to choose programming on an a la carte basis. This unprecedented offering will provide subscribers with more choices and lower prices and pave the way for a unique form of competition in the entertainment industry — one based on the individual programming preferences of listeners.

Tomorrow, XM and SIRIUS will file their joint reply comments with the Federal Communications Commission (FCC). The filing will include detailed programming and pricing plans, including two a la carte options. One option will allow subscribers to choose 50 channels for just $6.99 — a 46 percent decrease from the current standard subscription rate of $12.95. Under this option, customers will also be able to include additional channels for as little as 25 cents each. The second a la carte option will allow subscribers to choose 100 channels and will allow SIRIUS customers to select from some of the best of XM’s programming (and XM subscribers to choose from some of the best of SIRIUS’ programming).

The combined SIRIUS-XM will also offer several other new programming packages, including two “family-friendly” options, as well. Those choosing one of the “family-friendly” options will be able to block adult-themed programming and, for the first time, receive a price credit. These packages will set a new standard in audio entertainment and subscription media, offering lower prices, package options, and “best of both” offerings. The new plans will give consumers the ability to choose from an array of different packages and price points, ranging from $6.99 - $16.99. A la carte programming will be available beginning within one year following the merger, and the other programming options will be available beginning within six months following the merger.

“Mel and I are very excited about being able to offer a la carte programming. We think this is going to be great for consumers and great for our business. From the day this transaction was announced, we promised that the merger would enable us to deliver more choices and lower prices for consumers. In our filing tomorrow with the FCC, we will offer detailed plans regarding how we will achieve those goals. These plans will further demonstrate why this merger is overwhelmingly good for consumers and in the public interest,” said Gary Parsons, Chairman of XM Satellite Radio.

In total, the companies announced a suite of eight post-merger programming options, all of which adhere to the companies’ commitment to maintain and enhance service to existing devices and to ensure that no consumer pays more after the merger for the service they enjoy today.

“The a la carte options and other packages unveiled today demonstrate that consumers will be the beneficiaries of this merger. The efficiencies of the merger will allow the combined companies to save hundreds of millions of dollars a year and give us the opportunity to increase the number of programming options available to subscribers,” said Mel Karmazin, CEO of SIRIUS Satellite Radio.

A La Carte Programming

The combined company will offer two a la carte packages. Consumers will select their channels on-line allowing them to easily review the full-range of each company’s programming choices. A la carte programming will only be available for subscribers using new radios, which will be developed following approval of the merger.

    -- A La Carte -- 50 Channels ($6.99) -- Currently the only standard
       package offered by either company is $12.95 a month.  Under this new
       option, for only $6.99 per month -- a savings of 46 percent --
       consumers will be able to choose either 50 SIRIUS channels from
       approximately 100 SIRIUS channels or 50 XM channels from approximately
       100 XM channels.  Additional channels can be added for 25 cents each,
       with premium packages priced at additional cost.  However, no one
       choosing this option will pay more than $12.95 a month.

    -- A La Carte -- 100 Channels ($14.99) -- Consumers may also choose an a
       la carte offering of 100 channels each.  SIRIUS customers will be able
       to choose from some of the best of XM's programming and XM customers
       will be able to choose from some of the best of SIRIUS' programming.
       Today this programming would require two monthly subscriptions,
       totaling $25.90.  The new 100 channel a la carte option represents a
       savings of 42 percent.

          Best of Both Packages Will Be Available on Existing Radios

(more…)

http://news.yahoo.com/s/nm/20070523/tc_nm/xm_sirius_dc_1;_ylt=Aj8X9txfNwyP9cWt.FqeSBkE1vAI

Reuters is reporting that Sen. Herb Kohl (D-WI) has come out on record as opposing the XM-Sirius merger.  As we’ve said before, Congress does NOT have a direct role to play in the merger decision, but that regulators who do have a role will take the input from those who control their funding very seriously.  Senator Kohl is the chairman of the Senate’s anti-trust subcommittee, and works closely with the DoJ anti-trust division.

For Mel and the merger team, this is clearly bad news.  On the good news front the marketing department ought to take some of Sen. Kohl’s words for their advertising.  Terrestrial radio is too limited to compete with satellite radio, while personal audio players can not match the programming of satellite service, he wrote.

“No other technology available today is a substitute for the satellite radio,” Kohl wrote.

Heck, we’ve been saying that for years!!  As much we all of us here would tend to agree with the Senator on these points, we also need to recognize that millions of consumers disagree and find their terrestrial radio stations and personal music players not only competitive, but superior.

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

Broadband Instruments recently unveiled Slacker, a “Personal Radio” service to deliver content online and through a WiFi and Satellite-capable portable player. After recruting executives from MusicMatch, Rio, and iRiver; Slacker was ready to expand Personal Radio services, introduced by internet-only Last.fm and Pandora, to the portable market. Their satellite bandwidth will be leased from the Ku band, and is rumored to deliver 10,000 tracks/day (7 tracks/minute) to be archived on the portable receiver while docked. Slacker’s Portable Player will cost between $150-$350, dependent upon storage capacity desired. It will support MP3, subscription-based WMA, WMA, and MPEG-4/AAC-encoded audio files, and play WMV video on a 4-inch screen. You can try out the Slacker Jukebox online at Slacker.com. The online service is free, but for $7.50/month you’ll get a player without video ads and the ability to skip more than 6 songs per hour per channel.

How will the introduction of Slacker affect the Sirius/XM merger? Post in the comments section below.

[Via Wired, Orbitcast, Engadget, and CNet]