OK, technically, they didn’t approve it, they choose not to oppose it, but to subscribers this may be a difference without a distinction.  Here’s the press release from Sirius.  http://investor.sirius.com/ReleaseDetail.cfm?ReleaseID=301291

SIRIUS Satellite Radio (Nasdaq: SIRI) and XM Satellite Radio (Nasdaq: XMSR) today announced that the U.S. Department of Justice (DOJ) has informed the companies that it has ended its investigation into the pending merger of SIRIUS and XM without taking action to block the transaction. This decision means the DOJ has concluded that the merger is not anti-competitive and it will allow the transaction to proceed. SIRIUS and XM each obtained stockholder approval in November 2007. The pending merger is still subject to approval of the Federal Communications Commission.

Here’s the DoJ’s spin…http://www.usdoj.gov/opa/pr/2008/March/08_at_226.html

The Division’s investigation indicated that the parties are not likely to compete with respect to many segments of the satellite radio business even in the absence of the merger. Because customers must acquire equipment that is specialized to the satellite radio service to which they subscribe, and which cannot receive the other provider’s signal, there has never been significant competition for customers who have already subscribed to one or the other service. For potential new subscribers, past competition has resulted in XM and Sirius entering long-term, sole-source contracts that provide incentives to all of the major auto manufacturers to install their radios in new vehicles. The car manufacturer channel accounts for a large and growing share of all satellite radio sales; yet, as a result of these contracts, there is not likely to be significant further competition between the parties for satellite radio equipment and service sold through this channel for many years. In the retail channel, where the parties likely would continue to compete to attract new subscribers absent the merger, the Division found that the evidence did not support defining a market limited to the two satellite radio firms that would exclude various alternative sources for audio entertainment, and similarly did not establish that the combined firm could profitably sustain an increased price to satellite radio consumers. Substantial cost savings likely to flow from the transaction also undermined any inference of competitive harm. Finally, the likely evolution of technology in the future, including the expected introduction in the next several years of mobile broadband Internet devices, made it even more unlikely that the transaction would harm consumers in the longer term. Accordingly, the Division has closed its investigation of the proposed merger.

http://www.radio-info.com/in3_src/images/SP07_National_Satellite_P12.pdf

Lots of interesting data, including the domination of Stern programming among Sirius listeners.

Post your favorite data extrapolation

Thanks to livingfruitvirus at XMFan for the find!

In filings with the SEC this morning, both SatRad companies announced they will holding shareholder votes on the merger on Nov. 13th

http://money.cnn.com/news/newsfeeds/articles/djhighlights/200710040938DOWJONESDJONLINE000561.htm

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.

Orbitcast is reporting that XM “shock jocks” Opie and Anthony will immediately start serving a 30-day suspension. Apparently there were comments made on yesterday’s program that indicated to XM management that their earlier apology was insincere (as many commenters here pointed out at the time).

The XM statement is here

More details as they become available…

Update 3:50pm ET: Orbitcast has a second post that includes the offending audio.

Update 5/16: Although I first found this report at Orbitcast, I have to give credit where it it is due, and recognize Ryan at XMFan for being first to break this story early yesterday morning.

This morning, Sirius CEO Mel Karmazin stopped by the Howard Stern show for nearly an hour. The Stern staff and callers asked him questions regarding plans for the merger.

He said that merger Talk began nearly two years ago. XM passed on it then, but talks have been ongoing since. The companies’ lower stock prices combined with greater external competition has made the deal more appealing to both sides.

Click here to listen to the interview (54 minutes)

22MB // MP3 Audio // Credit: Guins

Monthly Price

When asked if rates will increase:

Mel: Sirius charged $12.95 when they started, and still charge $12.95 after signing Howard and Nascar. They’re not in a price war with XM, they’re in a price war with free radio.

He hinted the tiered programming plan may allow some subscribers to pay less than they do now. The pricing and the subscriber packages are still vague at this point, but pointed out there have been no rate hikes since he’s been CEO.

In response to Artie’s concern about vending machine prices increasing:

Mel: I don’t know how long we can keep the current pricing on our vending machine. Our service, we’re not going to raise the prices on our service, but I never said anything about the vending machine.

Robin: If they don’t approve it [at first], could they say if you do this, this, and this…?

Mel: For example, if someone said ‘we’re concerned about pricing, is there something you can do to guarantee prices won’t increase’?. I mean, there are a number of things we’re prepared to do or trade off in this event.

(more…)

According to Orbitcast, theflyonthewall.com is saying that XM and Sirius are planning to announce a merger today at the North American International Auto Show. We’ve commented on why it wouldn’t work before, so I won’t rehash it. If it does happen, look to Backstage to report the details, and thoughts on the merger. Stay tuned.

I do wonder why they didn’t announce this Monday at CES, if it is happening.

Click to Comment

Thanksgiving marks the beginning of the holiday shopping chaos. With the season comes lots of new television and print ads.

XM Canada launched its first Canadian TV campaign, urging Canadians to get on the road with XM. And it’s a hit. “Panties” shows a man rocking out to a great guilty pleasure song, “Cherry Pie” by Warrant. He is singing out loud, as we all do in our cars–I know I’m not the only one–until the inevitable happens. While waiting in traffic, he’s caught in the act by three women. The man looks away, embarrassed, dejected, until three sets of panties hit him in the face. He tucks the undies in his pocket and drives off a happy man. Watch the ad here.

The campaign’s tagline is: “There’s no place like it.” “Panties” is running across Canada, except for in Québec.

Ironically, SIRIUS used “Cherry Pie” in an early advert with Pam Anderson.

Here’s a few funny SIRIUS ads on YouTube here and here. No word if these have aired anywhere. If you have info on these spots, let us know.

Via MediaPost

Comment here.

Just as SIRIUS prepares to launch the Stiletto portable satellite radio this August, Verizon Wireless is countering with a hybrid Cell Phone and digital music player called “Chocolate”.

Verizon partnered with Korean consumer electronics giant LG to import the Chocolate to the American market.

LG has sold more than 1 million devices worldwide since May. Verizon has felt the competitive muscle of Apple’s iPod, as the Chocolate has has comparable storage to Apple’s 1GB Shuffle or 2GB Nano iPod designs.

Instead of trying to convert iPod devotees, Verizon will compete for customers by focusing on people who don’t yet have a portable digital music player, said John Harrobin, vice president of digital media for Verizon Wireless, during a conference call with reporters.

“Radio is heavily programmed and can be formulaic. But this mobile platform is an excellent device for music discovery,” he said.

SIRIUS is looking to break out of the confines of their structured channel lineup with the Zing, which is said to feature community music discovery features and dynamic playlist capabilities.

“Our personal live satellite radio product, Stiletto, is great,” Mel Karamazin, chief executive officer of Sirius, said on a conference call. “We have been beta testing it for a few weeks and we will have it available to consumers by the end of the summer.”

Verizon will sell the Chocolate phone for $149.99, with a two-year subscription and after a $50 rebate. V CAST songs cost 99 cents if purchased from a PC or $1.99 if purchased and downloaded over the air.

In comparison, SIRIUS Stiletto will likely retail for $350-$450, in line with comparable devices from XM such as the Inno and Helix.

Nonetheless, SIRIUS has the continued challenge of balancing retail hardware costs with a monthly subscription service. Compelling content is the enabler, however new devices such as Verizon’s Chocolate, Apple’s iPod and Microsoft’s upcoming Zune player will make the back-to-school and holiday seasons competitive for the Stiletto.

Comment here.

Former spokesperson for the RIAA, Ms. Rosen now leads a consulting group whose clients include XM. In this interview with Wired magazine, she talks about DRM and how recording rights ought to apply to SDARS services like XM and Sirius. She makes references to Sirius including this part in regards to the earlier announced settlement:

“There’s been a lot of bad information reported about this, both on what the device does and the business choices XM has made. People have said, well Sirius chose to pay additional monies for their devices but XM didn’t. That’s not true. XM did offer to pay additional monies, in fact, at greater levels than what Sirius is paying, but the record companies, I think, were just looking for a lawsuit on this one because they’re hesitant about these devices going forward.”

I thought it was interesting from a wider angle of music-lovers, but also applicable to SDARS fans (like us).

Comment Here