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SIRIUS XM Radio (Merger Mania) Now that the FCC has "approved" the merger, discuss all the aspects of it and the newly formed company.

 
 
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Old 02-28-2007, 09:23 PM   #1
D0TC0M
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Default Mark Cooper makes alot of sense IMO

I've been listening to the merger hearing. Mark Cooper mirrors my thoughts to a Tee. He brings out exactly what my concerns are and also like what Charles Biggio had to say. They both ask the exact questions I wish to have answers to. I do agree that NAB are a bunch of hypocritical Aholes.

I found one piece interesting that came out is that Sirius and XM were as part of their licenses develop hardware that would be compatible with both systems which isn't the case today. Oh there is one but only Mel has one on his desk hehehe

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Old 03-01-2007, 10:47 AM   #2
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Did you hear Mel's response to the question of a dual-chip receiver?

Mel said they HAVE created the radio...but can't find a company that will produce it because both XM & SIRIUS don't want to subsidize the production of a radio that could result in no subscription. The producers/manufactorers are not wanting to create a device that won't sell due to high market price (becuase of no help from SIRIUS/XM).

For example, SIRIUS subsidizes the producers of the Stiletto to reduce the price in the market. It probably would cost $500-$600 if SIRIUS didn't subsidize it. He stated that a dual-chip radio would cost $700+ if XM/SIRIUS didn't subsidize it (which both don't want to). The argument would be made that anyone that purchases such a device WOULD subscribe to both services...but for how long?? What if they decided to cancel one or the other? Then XM/SIRIUS just paid for a radio that doesn't result in a subscription (or a subscription that lasts long enough to pay for the payment they made to the radio maker).

Post-merger, such a radio makes great sense.
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Old 03-01-2007, 11:10 AM   #3
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yes I heard that and I understood his argument but also consider the point that they were to make them available as per FCC rules. They chose to ignore those rules. You can look at it from another way as well, the unsubsidized price of their hardware would be around $500-$600 (he didn't say which model, it could be the stiletto for all we know) but in any account the price of a dual chip receiver was only about $100 or so more. If both companies fulfilled their FCC commitments as they were licensed to do then the argument could also be made that well you might lose some customers to the competition but you also gain some from them as well and competition would dictate where the majority would go. I'm think both companies felt this as a liability and thus chose to not make them available. I'm pretty sure if the consumer had been offered the choice, some people would have bought these dual chip receivers. Certainly those with dual subs would have considered it for sure.

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Old 03-01-2007, 11:39 AM   #4
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Originally Posted by D0TC0M View Post
yes I heard that and I understood his argument but also consider the point that they were to make them available as per FCC rules. They chose to ignore those rules.
You can blame the FCC for that. The FCC rule/condition stated that XM & Sirius had to develop a dual radio. It did NOT say they had to market it. XM & Sirius chose to follow the letter of the FCC rule while probably not the spirit.
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Old 03-01-2007, 01:01 PM   #5
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yeah Mark Cooper did mention this double talk that was going on. Rules I guess have to be written in lawyer talk so that this doesn't happen LOL
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Old 03-01-2007, 01:26 PM   #6
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Why would you mass produce a radio that is of no use right now? Yeah there are some dual subscribers out there right but I'm sure they are a very small percentage. Most people don't want to pay for radio let alone pay twice. I'm sure a large number of sunscribers come from new car purchases as well. My father in law subscribes to XM, now my mother in law gets free Sirius for buying a Jeep. It's hard to say how many people will remain subscribers once the free term ends.

At least we know they have this radio designed. If the merger gets approved it won't be too long afterwards that they'll have a radio available. Hopefully it can switch between services with no difference then changing channels now. How much to subscribe the thing will be the big wait and see.
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Old 03-01-2007, 02:08 PM   #7
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Why would you mass produce a radio that is of no use right now? Yeah there are some dual subscribers out there right but I'm sure they are a very small percentage. Most people don't want to pay for radio let alone pay twice. I'm sure a large number of sunscribers come from new car purchases as well. My father in law subscribes to XM, now my mother in law gets free Sirius for buying a Jeep. It's hard to say how many people will remain subscribers once the free term ends.
To answer your first question, As per Mark Cooper - They "had" to develop and make avialable to the public hardware that could receive both signals as a condition of the FCC license. I never knew this until I heard it in the hearings yesterday. Mark stated that they chose not to obey this FCC rule. Had they obeyed that rule than the argument on needing 2 hardware devices to listen to both streams would be non existent. If this is found to be true, I would find it hard to sympathize with them when they bring up the hardware incompatibility argument because had they followed that rule back when they conceived these companies, the problem wouldn't exist today. You can argue that it makes no economical sense to force them to do that but if in fact it was part of their license when they started doing business this argument is mute. If they weren't prepared to do this then sorry but they shouldn't have started the business and FCC should have had more teeth in inforcing their rules. It will be interesting to see how this unfolds as time goes by.


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Originally Posted by Nismo View Post
At least we know they have this radio designed. If the merger gets approved it won't be too long afterwards that they'll have a radio available. Hopefully it can switch between services with no difference then changing channels now. How much to subscribe the thing will be the big wait and see.
Well if I may speculate, they might make available a dual chip receiever but for the time being if they merge, from what I heard from the hearings, both streams will essentially have shared content added to each stream which for the average listener would not intitate a huge demand to buy these dual chip devices considering the majority are probably happy with what they have now. The only market would be those of which would like all the rest of the content that is not shared. Alot of questions arise in this situation but, most prominently is the question of shared content. If such dual chip devices are made available the company could chose not to shared certain content as to entice customers to buy these devices. These are all "what if" scenerios but worth discussing IMO. We haven't gotten alot of detail on that yet but I would guess that it will come out soon enough.

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