SIRIUS and XM Merger [COMPLETE] - FreeiPodGuide Forums

h3x

20-02-2007 05:19:11

[b075e379319][u075e379319]SIRIUS-XM Merger Conference Call Notes[/b075e379319][/u075e379319]

- Operator has introduced Mel to the conference but there was silence... Operator has told us to stand by... Hold music is back on.
- Mel is finally on...
- Mel "We believe that this is the next logical step in the evolution of Satellite Radio... Will create long term value for the shareholders of both companies"
- Management will consist of both companies, Total cost savings of $3 to 7 billion
- Mel "The combined company expects to offer more diverse programming"
- Mel "We expect to offer the best content from both companies"
- Mel "Our radios will be smaller, lighter, simpler and cooler than what each company has today"
- Estimated $1.5 billion growth in revenue this year
- Mel (regarding the pending regulatory approval) "We believe there is a solid basis for approval." Goes on to mention that the company has done extensive research on this prior to the announced merger and is confident that the merger will go through as planned.
- The two companies will come up with a name for the merged company and the new headquarters before the merger goes to vote amongst shareholders.
- Gary "Sirius and XM will combine in a tax-free "merger of equals"
- Gary "The board will consist of 12 members (including Mel and myself)... 4 independent contractors... 1 representative each from GM and Honda.."
- Hugh will remain CEO of XM until the merger closes.
- Plans to offers an "a-la-carte" style programming choice for subscribers
- Mentions competition from "HD Radio", "iPods", "Internet Radio" and other medias and how the company (once merged) can effectively compete
- Gary "Shareholders will vote on the merger is the next step... This is expected to be completed within 4-6 months"
- Gary "We expect to receive regulatory approvals within 9 months"
- Gary "We expect to close the transaction by the end of 2007"
- SLIDE 20 Lists exclusive content offered under the new company (Howard Stern, Oprah & Friends, Martha Stewart, Bob Dylan)... O&A are not mentioned anywhere on the slide.
- Questions are being taken by those who dialed into the teleconference
- Q Have either of you done consumer research on how much of your disconnect numbers that cite either companies programming or lack of satisfaction of programming that drives the disconnecting? Both companies have a continuing process of testing the consumer waters... In the end its about value programming... That's one of the benefits of the merger for the consumer. The thought of them having 2 radios is not as attractive to them... The vast majority of subscribers we're looking to gain is from the 90% of individuals that aren't subscribed to Satellite Radio.
- Q Is there any impact imposed from the RIAA or NEB towards the planned merger? A We will go through a process and file our comments individually with the RIAA and the NEB as seperate companies during the merger.
- Question was about how they plan on offering full content to it's subscribers... A Each company has millions of exisiting radios that are in cars... We have joint engineering teams that are working on receivers that will be capable of accessing the full range of content from both systems... Current units will continue to work.
- Q How will the marketing go during the interim period? A Both companies will continue to operate as we do today.. Look for no changes on that front until the transaction is closed. Our plan will be to visit with regulatory committees next week.
- Q Will you span both content under one satellite fleet? A That's much further out... You do have the ability to access both companies content at the chipset level with further research.
- Q Does the merger's interoperability conflict with current OEM contracts? Both companies believe in honoring agreements... We believe car manufactures and OEM manufacturers will see the benefits of dual-programming.
- XM completed the launch of XM 4 Last December... SIRIUS 5 will launch in 2008... The merger will not effect the launch of SIRIUS 5.
- Question about pricing under the new company and the DOJ... A The one thing we do know... Raising our prices diminished our conversion rate 2 years ago (when XM raised the price)... SIRIUS did not raise it's price when XM raised theirs in 2002... We need to reach out to that 90% (that have not subscribed)... Over 90% of the people are getting their radio OTA and for free... We're confident that the DOJ will see that when they look at our competitors.
- We don't to do anything today at SIRIUS that will slow the adoption of more people coming to satellite radio... The reason that we have not raised our price is because of that overwhelming market out there of people that are not paying for radio.
- Question about the shutting down one of the two exisiting Satellite Radio spectrums... A It's not practical to look at turning off one system or one system of satellites.. It's not feasible due to the current installed base. We have to continue to have a backwards compatibility for current subscriber base. It's not realistic to look at elimination of a platform.
- Within 25 days, we will file an application with the FCC... and that will start the clock going at the FCC.
- Final question... How soon do you think you can get the interoperative market going for subscribers to switch over? As you know, we've been researching interoperability for quite a while... It will be brought out as fast as possible when we receive regulatory approval.
- Conference closes.

Of course I didn't note take every question that was asked (a lot of it was stockholder related questions)... But I mentioned all the good parts of the conference... I had the opportunity to ask a question to Mel and Gary, but unfortunately it did not go through (

Hope these notes answer some of your questions about the merger...

ajasax

20-02-2007 08:30:47

Are you part of some kind of Sirius committee? What got you into Sirius?

h3x

20-02-2007 12:46:32

[quotefd8df8f081="ajasax"]Are you part of some kind of Sirius committee? What got you into Sirius?[/quotefd8df8f081]

I'm a shareholder.

Wolfeman

20-02-2007 12:57:29

What is a good portable SIRIUS player?

dmorris68

20-02-2007 13:17:00

I just bought a radio and subscribed to XM about a month ago. )

h3x

20-02-2007 15:56:42

[quote46b10da77c="Wolfeman"]What is a good portable SIRIUS player?[/quote46b10da77c]

The Stiletto

http//www.digitaldrops.com.br/drops/imagens/sirius-stiletto-hirez1.jpg[" alt=""/img46b10da77c]

- Stores up to 100 hours of programming
- Ability to listen to SIRIUS Internet Radio on a Wi-Fi hotspot or on your home network
- OTR (One Touch Recording)
- 30 Channel Presets
- Also doubles as a MP3/WMA player
- 2.2" Color Display
- Pause/Rewind/Replay up to 44 minutes of live radio
- Audible Channel Names
- Lets you know when your favorite games are being broadcast and alerts you when the scores change
- Ability to bookmark songs and buy them from the Yahoo Music Download Service
- Come with 2 battery packs (Slim and Standard)

There's other features as well... It's a really nice player.

You can grab one from TSS-Radio for $284.99

They also make a 10 hour version for $219.99

http//www.tss-radio.com/sirius-radios-c-23_291.html

If you're strapped for cash... There's the S50 with the Car Kit being sold at SIRIUS for $79.99 (after $100 rebate)

[img="46b10da77c]http//z.about.com/d/radio/1/0/y/5/SIRIUS-S50.JPG[" alt=""/img46b10da77c]

Somewhat the same except it's 50 hours, no Wi-Fi capability and the battery is fixed (USB rechargable).

Here's their Portable line-up (including the S50)

http//shop.sirius.com/edealinv/servlet/ExecMacro?nurl=control/StoreDirectory.vm&ctl_nbr=2640&catLevel=1&catParentID=7874&scId=7874&oldParentID=7870

I have the Starmate 4 (while it's not portable in the sense you can't listen to it like a Zune or an iPod), it suits my needs perfectly from the Car to the House

[img="46b10da77c]http//www.mobilewhack.com/sirius-starmate4.jpg[" alt=""/img46b10da77c]

You can get one from TSS-Radio for $89.99 (after $20 rebate)

http//www.tss-radio.com/sirius-starmate-st4tk1-p-3903.html

tylerc

20-02-2007 16:56:03

[quotea001edfe97="dmorris68"]I just bought a radio and subscribed to XM about a month ago. )[/quotea001edfe97]

Same, I have had mine for a little over a month, except I had it built in to my Honda Accord, just never activated it.

Wolfeman

20-02-2007 17:20:42

[quotef2cd6c12c4="h3x"][quotef2cd6c12c4="Wolfeman"]What is a good portable SIRIUS player?[/quotef2cd6c12c4]

The Stiletto

http//www.digitaldrops.com.br/drops/imagens/sirius-stiletto-hirez1.jpg[" alt=""/imgf2cd6c12c4]
[/quotef2cd6c12c4]
Does it get decent signal inside? I don't sit near a window (

I really want something for work and my car.

Also, I want a Slingbox )

h3x

20-02-2007 17:41:45

[quotea4d53801c1="Wolfeman"][quotea4d53801c1="h3x"][quotea4d53801c1="Wolfeman"]What is a good portable SIRIUS player?[/quotea4d53801c1]

The Stiletto

http//www.digitaldrops.com.br/drops/imagens/sirius-stiletto-hirez1.jpg[" alt=""/imga4d53801c1]
[/quotea4d53801c1]
Does it get decent signal inside? I don't sit near a window (

I really want something for work and my car.

Also, I want a Slingbox )[/quotea4d53801c1]

There's a Terrestrial Repeater near Newport Beach... You should have no issues... Remember, there is also Wi-Fi built in... So if you're not getting a solid signal, you can use the Wi-Fi... But you should be good to go )

Here's a map for you that shows the location of the TERR repeater and the coverage footprint.

http//www.dogstarradio.com/sirius_map.php?longitude=-117.97393798828125&latitude=33.60546961227188&zoom=11

irannaked

20-02-2007 18:07:21

ok, so since XM and Sirus are merging...where can i find the new radios and service prices?

and can you have BOTH XM and Sirus on ONE player?
$12.99 monthly?

Tholek

20-02-2007 23:16:43

In case you're still reading...None yet. There's been a FCC-required dual chipset radio in the works for some time, but both networks really didn't want it to come to fruition. That's changed now, but I don't think we'll see them for a couple of years.

[quotef0c78ab991="h3x"][quotef0c78ab991="Wolfeman"][quotef0c78ab991="h3x"][quotef0c78ab991="Wolfeman"]What is a good portable SIRIUS player?[/quotef0c78ab991]

The Stiletto

http//www.digitaldrops.com.br/drops/imagens/sirius-stiletto-hirez1.jpg[" alt=""/imgf0c78ab991]
[/quotef0c78ab991]
Does it get decent signal inside? I don't sit near a window (

I really want something for work and my car.

Also, I want a Slingbox )[/quotef0c78ab991]

There's a Terrestrial Repeater near Newport Beach... You should have no issues... Remember, there is also Wi-Fi built in... So if you're not getting a solid signal, you can use the Wi-Fi... But you should be good to go )

Here's a map for you that shows the location of the TERR repeater and the coverage footprint.

http//www.dogstarradio.com/sirius_map.php?longitude=-117.97393798828125&latitude=33.60546961227188&zoom=11[/quotef0c78ab991]

I have to give it to Sirius on the Stiletto, it's certainly better than the S50, but XM is still ahead.

Some of the side by side comparisons between Sirius and XM players clearly show that Sirius is still behind, even with the Stiletto. If you can call the Stiletto the 1st Gen true handheld receiver, the XM 2nd Gen Inno and Helix still beat it.

Inno
[img="f0c78ab991]http/" alt=""/img157.imageshack.us/img="157/8884/inno2zh2adx0.jpg[" alt=""/imgf0c78ab991]

However, whistles and bells aside, it's the reception and repeater coverage that is key, and Wi-Fi compatibility is useless when most access is encrypted on the road. So, while I like a lot of the Sirius content, some even better than XM, if I was just looking at sat radio in general for music, I'd still go XM due to the hardware. At least for now.

Still, if you're dead set on Sirius, I'm with h3x on the Stiletto.

[quotef0c78ab991="h3x"][bf0c78ab991][uf0c78ab991]SIRIUS-XM Merger Conference Call Notes[/bf0c78ab991][/uf0c78ab991]

- Operator has introduced Mel to the conference but there was silence... Operator has told us to stand by... Hold music is back on.
- Mel is finally on...
- Mel "We believe that this is the next logical step in the evolution of Satellite Radio... Will create long term value for the shareholders of both companies"
- Management will consist of both companies, Total cost savings of $3 to 7 billion
- Mel "The combined company expects to offer more diverse programming"
- Mel "We expect to offer the best content from both companies"
- Mel "Our radios will be smaller, lighter, simpler and cooler than what each company has today"
- Estimated $1.5 billion growth in revenue this year
- Mel (regarding the pending regulatory approval) "We believe there is a solid basis for approval." Goes on to mention that the company has done extensive research on this prior to the announced merger and is confident that the merger will go through as planned.
- The two companies will come up with a name for the merged company and the new headquarters before the merger goes to vote amongst shareholders.
- Gary "Sirius and XM will combine in a tax-free "merger of equals"
- Gary "The board will consist of 12 members (including Mel and myself)... 4 independent contractors... 1 representative each from GM and Honda.."
- Hugh will remain CEO of XM until the merger closes.
- Plans to offers an "a-la-carte" style programming choice for subscribers
- Mentions competition from "HD Radio", "iPods", "Internet Radio" and other medias and how the company (once merged) can effectively compete
- Gary "Shareholders will vote on the merger is the next step... This is expected to be completed within 4-6 months"
- Gary "We expect to receive regulatory approvals within 9 months"
- Gary "We expect to close the transaction by the end of 2007"
- SLIDE 20 Lists exclusive content offered under the new company (Howard Stern, Oprah & Friends, Martha Stewart, Bob Dylan)... [bf0c78ab991]O&A are not mentioned anywhere on the slide.[/bf0c78ab991]
- Questions are being taken by those who dialed into the teleconference
- Q Have either of you done consumer research on how much of your disconnect numbers that cite either companies programming or lack of satisfaction of programming that drives the disconnecting? Both companies have a continuing process of testing the consumer waters... In the end its about value programming... That's one of the benefits of the merger for the consumer. The thought of them having 2 radios is not as attractive to them... The vast majority of subscribers we're looking to gain is from the 90% of individuals that aren't subscribed to Satellite Radio.
- Q Is there any impact imposed from the RIAA or NEB towards the planned merger? A We will go through a process and file our comments individually with the RIAA and the NEB as seperate companies during the merger.
- Question was about how they plan on offering full content to it's subscribers... A Each company has millions of exisiting radios that are in cars... We have joint engineering teams that are working on receivers that will be capable of accessing the full range of content from both systems... Current units will continue to work.
- Q How will the marketing go during the interim period? A Both companies will continue to operate as we do today.. Look for no changes on that front until the transaction is closed. Our plan will be to visit with regulatory committees next week.
- Q Will you span both content under one satellite fleet? A That's much further out... You do have the ability to access both companies content at the chipset level with further research.
- Q Does the merger's interoperability conflict with current OEM contracts? Both companies believe in honoring agreements... We believe car manufactures and OEM manufacturers will see the benefits of dual-programming.
- XM completed the launch of XM 4 Last December... SIRIUS 5 will launch in 2008... The merger will not effect the launch of SIRIUS 5.
- Question about pricing under the new company and the DOJ... A The one thing we do know... Raising our prices diminished our conversion rate 2 years ago (when XM raised the price)... SIRIUS did not raise it's price when XM raised theirs in 2002... We need to reach out to that 90% (that have not subscribed)... Over 90% of the people are getting their radio OTA and for free... We're confident that the DOJ will see that when they look at our competitors.
- We don't to do anything today at SIRIUS that will slow the adoption of more people coming to satellite radio... The reason that we have not raised our price is because of that overwhelming market out there of people that are not paying for radio.
- Question about the shutting down one of the two exisiting Satellite Radio spectrums... A It's not practical to look at turning off one system or one system of satellites.. It's not feasible due to the current installed base. We have to continue to have a backwards compatibility for current subscriber base. It's not realistic to look at elimination of a platform.
- Within 25 days, we will file an application with the FCC... and that will start the clock going at the FCC.
- Final question... How soon do you think you can get the interoperative market going for subscribers to switch over? As you know, we've been researching interoperability for quite a while... It will be brought out as fast as possible when we receive regulatory approval.
- Conference closes.[/quotef0c78ab991]

Your mentioning that speaks volumes. Is that Howie I smell on your breath? ;)

You apparently missed Gary stating that (and I paraphrase only slightly) that the new company will allow subscribers to hear "Howard and [bf0c78ab991]Opie & Anthony[/bf0c78ab991], Martha and Oprah and Football & Baseball" together.

I wouldn't have expected Mel to say that, since he hates them, but Gary clearly mentioned them as one of the biggest programs/channels of both networks. (IIRC, they [if0c78ab991]are[/if0c78ab991] actually the most listened to XM channel, so it would be weird not to)

You also didn't mention Mr "Karmazy" (lol) making a statement along the lines of subscribers having to pay $26 a month for content as of now (I believe in response to some question about pricing), as if we all have one of each radio. (the gall!)

That certainly sent a chill down my spine as for future subscription increases, and reminded me that as expensive sat radio is to some, it's as low as it is due to competition.

Merger = No competition = Price Increase = h3x makes some dough. ;)

If everything goes down as mentioned above, and elsewhere in the conference, it looks like I'll be going ala carte. (

h3x

21-02-2007 01:04:14

I checked with other shareholders and Gary did in fact mention O&A on the conference... I guess I missed it. (Keep in mind that I was listening to the teleconference over the phone, posting updates of the conference on here as it went along and discussing the conference with other shareholders simultaneously so I will miss some parts here and there)...

However about that $26/month... I didn't hear that at all... In fact I kept hearing Mel mention XM were raising their prices a few years back and SIRIUS stuck to their price. ?

I'll get back to you on that one.

P.S. Here's Slide 20 I was talking about... I'm just a bit surprised that if O&A are really doing that great (which recent ratings show that the number has dropped... not significantly, but there was still a drop) they would at least be mentioned on the slide (there's plenty of space to squeeze them in).

http/" alt=""/img216.imageshack.us/img="216/3710/slide20sb5.jpg[" alt=""/imgc9d73478e0]

h3x

21-02-2007 04:11:12

[quote90e01d745b="Tholek"]You also didn't mention Mr "Karmazy" making a statement along the lines of subscribers having to pay $26 a month for content as of now (I believe in response to some question about pricing), as if we all have one of each radio. (the gall!)[/quote90e01d745b]

He was saying that current dual subcribers that pay $26 a month as of now could reap the benefit of the merger with lower subscription costs for dual content... He just worded it funny ?

Tholek

21-02-2007 18:32:44

[quotec5753a1f9e="h3x"]However about that $26/month... I didn't hear that at all... In fact I kept hearing Mel mention XM were raising their prices a few years back and SIRIUS stuck to their price. ?[/quotec5753a1f9e]

The last XM price increase coincided with the inclusion of premium XM channels (like The Virus) into the main lineup once they realized their popularity. Previously, those channels were an extra $2 a month, with the main package subscription price being [ic5753a1f9e]less[/ic5753a1f9e] than Sirius. The increase was only an increase according to your point of view. ;)

[quotec5753a1f9e="h3x"][quotec5753a1f9e="Tholek"]You also didn't mention Mr "Karmazy" making a statement along the lines of subscribers having to pay $26 a month for content as of now (I believe in response to some question about pricing), as if we all have one of each radio. (the gall!)[/quotec5753a1f9e]

He was saying that current dual subcribers that pay $26 a month as of now could reap the benefit of the merger with lower subscription costs for dual content... He just worded it funny ?[/quotec5753a1f9e]

[ic5753a1f9e]Very[/ic5753a1f9e] funny. The way in which he phrased it was very ominous to me.

[quotec5753a1f9e="h3x"]I'm just a bit surprised that if O&A are really doing that great (which recent ratings show that the number has dropped... not significantly, but there was still a drop) they would at least be mentioned on the slide (there's plenty of space to squeeze them in).[/quotec5753a1f9e]

If you mean FM, then I agree. Their FM syndication deal hasn't yet reached the heights expected. Affiliate ratings are not as strong as they were when they were syndicated by Infinity and Westwood One years ago. Then again CBS plans to reconstitute the "Talk block" with a standard coast to coast lineup which will oust a lot of local programming. That may cement their acceptance as Howard heir apparents.

However, and at no prompting, Eric Logan, the Exec VP of XM Programming, publicly stated that they were the most listened to channel on all of XM. The lack of O&A's inclusion in promotions is a continued sore point, especially when considering that, but still not that surprising. Baseball, Oprah and Dylan are "safe", while O&A could put off people, especially those interested in XM for the entire family. Also take into account that Panero has/had a similar opinion of O&A that Mel does, and you can see how O&A never catch a break there.

Money is what matters though, and Mel probably won't act against them as long as they continue to rake in the subs, but if Mel's still under Howie's thumb, he could try to clilikblock them once again.

We'll see...

h3x

22-02-2007 02:40:03

SIRIUS filed Form 8-K with the SEC

http//www.shareholder.com/Common/Edgar/908937/950123-07-2540/07-00.pdf

What I think it says based on the content of the form

SIRIUS will be the holding company [Parent], XM will be the subsidiary company [Child]...

From what I understand, they intend to use the XM name (but SIRIUS will own the company).

Also, I'm removing the [MERGED!] from the thread title, as the merger hasn't even been approved yet and it will be a long time before it does and the shareholders have yet to vote on the merger.

Tholek

22-02-2007 05:16:55

Um, I added the [MERGED!] for the fact that I actually merged another thread about the merger into this one. ;)

Admittedly, the fine print of the merger is beyond me in a lot of areas, but Vernon Merger Corporation was created solely to be merged with XM? That's a bit disquieting. If I worked for XM I think I'd be worrying that those redundancy cuts may cut in one direction.

Plus O&A being answerable to Jeremy Coleman again is not good.

dmorris68

22-02-2007 08:54:54

I'm still thinking the SEC will nix this. Compare it to the DirecTV/Echostar merger attempt a few years ago -- the only difference now is it's radio instead of TV. There were only 2 players in the market space then, just like now, and the SEC said no. I don't know how much influence or leverage the FCC-backing will have, but since both are publicly traded companies it just seems unlikely that the SEC will approve of a monopoly.

h3x

22-02-2007 14:43:21

[quote4880775f71="dmorris68"]I'm still thinking the SEC will nix this. Compare it to the DirecTV/Echostar merger attempt a few years ago -- the only difference now is it's radio instead of TV. There were only 2 players in the market space then, just like now, and the SEC said no. I don't know how much influence or leverage the FCC-backing will have, but since both are publicly traded companies it just seems unlikely that the SEC will approve of a monopoly.[/quote4880775f71]

I think the angle they're trying to play is that with the emerging technology of HD Radio and exisiting technologies such as AM/FM, Internet Radio and MP3 Players (i.e. Zune, iPod, etc.) that there is plenty of competition in the industry.

All it depends on now is whether the SEC, FCC, DOJ and lawmakers see it in this light, or they see it strictly as a monopoly on [b4880775f71]satellite[/b4880775f71] radio.

Also, an organized group called the Consumer Coalition for Competition in Satellite Radio (C3SR) says they're ready to oppose the merger.

Then the NAB (National Association of Broadcasters) said "Given the government's history of opposing monopolies in all forms, NAB would be shocked if federal regulators permitted a merger of XM and Sirius. It bears mentioning that regulators summarily rejected a similar monopoly merger of the nation's only two satellite television companies -- DirecTV and DISH Network -- just a few years back."

"When the FCC authorized satellite radio, it specifically found that the public would be served best by two competitive nationwide systems. Now, with their stock prices at rock bottom and their business model in disarray because of profligate spending practices, they seek a government bail-out to avoid competing in the marketplace."

[b4880775f71]"In coming weeks, policymakers will have to weigh whether an industry that makes Howard Stern its poster child should be rewarded with a monopoly platform for offensive programming. We�re hopeful that this anti-consumer proposal will be rejected."[/b4880775f71] lol

Michael Powell (who was former head of the FCC) said he believes that the merger between Sirius and XM will pass (with some serious concessions)...

I'd say the merger can go either way at this point and it's going to be a long process...

[u4880775f71]Mel will be on Capitol Hill on February 28th to talk with the Congressional Antitrust Task Force regarding the merger.[/u4880775f71]

Armstrong

24-02-2007 20:15:32

not gonna happen. i know XM is headed down, but its just because of the economy.

h3x

26-02-2007 03:27:10

[bcf90a689ee]Mel Karmazin on the Howard Stern Show[/bcf90a689ee]

- Your SIRIUS satellite radio will not become obsolete and you will be able to get all of your SIRIUS programming after the merger on your current equipment and more programming (i.e. Baseball) on the current SIRIUS system. Same goes for XM.
- Again, says he's confident that the merger will go through.
- Tremendous savings on consolidating the call centers.
- Boards of both companies decided Mel being CEO was in their best interests (there was never any discussion of any other CEO).
- Talked to each of the five FCC commissioners individually shortly after the conference call (around 130pm EST).
- SIRIUS will go back to business as usual if the merger does fail.
- In his opinion, the odds of the merger going through is "certainly above 50%".
- Doesn't see either company going bankrupt if the merger fails.
- Will be speaking in front of a couple of congressional committees (first one on Wednesday).
- Not sure whether or not C-SPAN will cover the congressional meetings.
- Because of competition from various sources (i.e. terrestrial radio [which is free], a price hike would not seen in their best interest.

[bcf90a689ee]Subscribers begin to ask questions...[/bcf90a689ee]

- Caller asks if they would go to court if the merger is denied... Mel said if the merger is killed, it's killed (it would cost too much to go through any judicial process).
- Caller asks if Mel will remain CEO... You already know the answer (Yes).
- Artie asks a silly question about whether or not chocolate chip cookies will be available in the vending machines at the studio... Jokingly replied that they said they won't raise prices on subscriptions but that doesn't mean there won't be a price hike on the vending machines.
- Caller asks what the new company will be called... The new company name is still being worked out and will be announced soon... There is no firm decision. Can't imagine changing to a brand new name... It will most likely be either "SIRIUS" or "XM". Howard mentions that SIRIUS should probably be the new name since it has more brand recognition.
- Regulatory/Antitrust process could finish in as little as 3-4 months if the regulators agree unanimously, or it could take as long as 6-9 months if it doesn't.
- A few silly questions asked by Howard and the gang, and some side
chatter.
- Will leave for the first congressional at 500 AM on Wednesday and will testify at 300 PM.
- Mel is off to some meetings today.

h3x

27-02-2007 02:24:44

[b575e83b4ac][u575e83b4ac]From today's USA Today interview with Mel Karmazin[/b575e83b4ac][/u575e83b4ac]

Q If you're allowed to merge, will you use the monopoly power to raise monthly fees above the current $12.95?

A If we want to get more than the 10% of the population currently subscribing, we have to make it financially attractive, and there are still so many people that haven't been convinced that it's worth their while to pay for radio. If we can't get more subscribers at $12.95, what would make us think that we can get more at $15.95?

Q After the merger closes, which programming from Sirius' content will be available on XM's service and vice versa?

A What we need to do in this period of time is to work with our content partners. Most of those contracts didn't contemplate a combination.

[b575e83b4ac]Q How soon after the merger closes will XM subscribers be able to listen to Sirius content?

A It could start days (after). One of our priorities would be to work with our content providers to get our content in place so that we would be able to do this simultaneously with the merger.[/b575e83b4ac]

[b575e83b4ac]Q Will you offer any programming bundles or give subscribers more choices?

A There could be a service that would have just the kids programming and music programming and not any of the more expensive programming. Baseball, the NFL and bigger talent � such as Howard (Stern), Martha Stewart, and Oprah (Winfrey) � could be on another service that maybe would be more expensive.[/b575e83b4ac]

[b575e83b4ac]Q You've been working since 2000 on a radio that can receive both XM and Sirius signals. When will that be completed?

A We have one. It's in my office. � At this point, there is no market for it because nobody is subsidizing the cost of the (dual) radio. Today what Sirius does is that we subsidize (our) receiver. And the reason we subsidize it is because we're gonna get a subscription. So, we think with the merger this really represents an opportunity for us to be able to financially subsidize radios that provide for interoperability.[/b575e83b4ac]

[b575e83b4ac]Q Once the dual-chip device hits the market, what will happen to the satellite radios that consumers currently have?

A The radios won't be obsolete. � Let's assume that you are a subscriber and you like Sirius. If you want to get something additional, then that's your choice and you can always decide to buy a new radio. But we're not migrating you or forcing you to pick up some XM content (on a dual device).[/b575e83b4ac]

So I think the opportunity of having one radio is again giving consumers more choice. Shortly after the merger, we will have a radio that will be able to get both services, so you'll have a choice if you want to buy that radio or not.

[b575e83b4ac]Q You say that you're still going to run XM and Sirius as separate brands. If so, where will the cost savings come from?

A I think there are plenty of opportunities for synergies to occur, even though we will still, for the next 15 years, continue to operate a Sirius service and an XM service. �We both spend a whole bunch of money on customer care and the call center and there would be consolidation there. We spend a whole bunch of money on chip sets. There would be savings there. We spend a lot of money advertising and marketing. We have a whole bunch of areas for redundancy.[/b575e83b4ac]

Q You've talked about creating new satellite services, such as "backseat video." What's the latest with that?

A We will have live, real-time television in the backseat of the car. And you should think kids programming. We'll give more information within the next 30 days.

Q What channels do you have pre-set on your Sirius radio?

A CNBC, NPR, Fox News, Howard Stern and the NFL.

Q Do you ever listen to XM on your personal time?

A No. I listen to it in the office for business. But I am having it installed in my car. I'll (keep) XM and Sirius in my car as long as the merger goes through.

The sum of it all A dual-chip receiver already exists but won't be mass-produced for the consumer any time soon. While SIRIUS and XM have not come to agreement on the new company name, the SIRIUS and XM brand will continue to exist seperately to at least 2015. Also, it looks as though they will be offering "a-la-carte"... I'm guessing they will offer reduced rates for selective programming (i.e. a family programming package for $9.95 and may increase programming cost for howard stern, mlb, martha, oprah, etc). Lifetime subscriptions will also be honored (most likely on the basic tier).

Here's how I think they are playing the subscription rate angle I'd say they will combine their music, news (CNN, FOX News, NPR, etc) and other selective programming (such as "Raw Dog" on SIRIUS 104 or "ESPN Radio" on XM 140). and that will be the basic tier offered at the current $12.95 rate and they charge a couple of dollars more for Stern, O&A, Oprah, Martha, and sports)...

I'm honestly not sure to vote for the merger or against it... Still waiting for more information on how they will be pricing content.

It also sounds like O&A are safe in the merger process.

Admin

28-02-2007 13:12:09

i just feel sorry for all of those tools who have either company's logo etched on their dashboard

h3x

28-02-2007 13:15:25

Yeah, I would never buy a factory installed radio for the same reason (That and I wouldn't be able to receive the Canadian channels).

The first congressional meeting was today

The NAB (National Association of Broadcasters) was up first [who strongly oppose the merger and will do whatever they can to kill it] followed by Mel Karmazin...

Link to Video[=rtsp//video.c-span.org/15days/e022807_sirius.rm]Link to Video

It's 2 hours and 15 minutes long... I'll take notes of the conference when I have the time (I'm at work at the moment)

h3x

28-02-2007 22:27:45

[ba2300bf32f]First Congressional Anti-Trust Task Force Meeting[/ba2300bf32f]

[ua2300bf32f]Opening Statements[/ua2300bf32f]

[ba2300bf32f]David Rehr (President of the NAB) starts off the opening statements[/ba2300bf32f]
- He starts off by making 5 points
- "#1 The national satellite radio market is currently a two company duopoly trying to become a government sanctioned monopoly."
- "#2 Such a monopoly would violate FCC rules and precedent, congressional policy, and anti-trust principals."
- "#3 This government sanctioned monopoly would undermine audio content competition, not enhance it."
- "#4 Even worst, two entitys that have a pattern and practice of violating the terms of their FCC licenses cannot be trusted with monopoly power."
- "#5 Finally, by their own admission, both XM and SIRIUS are not failing companies and should not receive a government bailout."
- Goes on to mention antitrust laws and violations of FCC regulations (regarding dual-chip receivers and violating Part 15 regulation for terrestrial repeaters) and past quotes from SIRIUS stating that there should not be a single entity in the satellite radio market... Also mentions the attempted merger of DirecTV and EchoStar.
- Chairman of the Task Force told Mr. Rehr that he's the first witness to go over his allowed time

[ba2300bf32f]Gigi Sohn (President of Public Knowledge) is next[/ba2300bf32f]
- "The proposed merger possesses a dilemma for public interest advocates. On one hand, the only two providers of satellite radio services which have vigorously competited for the past five years are seeking to consolidate, raising questions about the impact of prices and choice for consumers. On the other hand, this vigorous competition has lead to a spending war for new inventive programming leading both competitors weakened in a world where internet radio, broadcast and hd radio, cable radio, and other multi channel music, entertainment and information services have become increasingly popular... -- the assailiant question is this Will consumers be better off? I believe that if the merger passes anti-trust scurtiny, consumers will be better off if the merger is approved subject to conditions that protect consumer choice, promote diverse programming and keep prices at check."
- "The antitrust questions raised here are very complex and ultimately pertains to information that Public Knowledge does not have access..."
- "It should only be approved subject to three conditions First, the new company should make available to its consumers a-la-carte and tier programming. Second, the new company should ensure programming diversity by making available 5% of its capacity for non-commercial educational/informational programming. This would resemble Section 335 of the Communications Act which requires DBS providers to reserve 4-7% of the channel capacity for such uses. Third, the new company should prohibited from raising prices for three years after the merger is approved."
- "I would like to conclude by raising two other concerns... First, Public Knowledge strongly opposes any merger condition involving limitations on the ability of consumers to record satellite radio services... Second, we also strongly oppose any merger condition that will limit satellite radio from providing local programming."

[ba2300bf32f]Mark Cooper (Director of Consumer Federation of America)[/ba2300bf32f]
- "We remain unconvinced by the excuses we've heard to justify this merger."
- "Head to head competition is what gets the job done... They're suggesting that free over the air radio will discipline price increases is ludacris. They raised prices a few years ago by 30%, free over the air didn't do it when they were competing head to head, what makes you think it's going to discipline prices when they aren't even competing head to head with well-meshed products?"
- "Perhaps the most outlandous of all the claims being circulated by the merging parties is the argument that consumers will be better off with a benevolent monopolist than vigorous competitors. We reject that ultra short-term view."
- "We're not talking conditions anymore... We want to give competition a chance."

[ba2300bf32f]Charles Biggio (Antitrust & Trade Regulation Attorney)[/ba2300bf32f]
- "We don't have all the facts necessary to determine the legality of the merger... However, merger review is essentially a long course in exercise... My recommendation is that no firm conclusion be formed about this merger until the agencies have completed their review."
- "The parties argue that the merger will allow subscribers to get XM and SIRIUS content with one subscription but they'll have to explain why the differentiation between XM and SIRIUS is a bad thing that can only be fixed by the merger."
- "Ultimately XM and SIRIUS will have to articulate merger benefits that the two firms could not have achieved themselves as independent firms competing in the marketplace."

[ba2300bf32f]Mel Karmazin (CEO of SIRIUS Satellite Radio)[/ba2300bf32f]
- "We will have an obligation to demonstrate that this merger is not anti-competitive. I hear that we'll probably will be working with the DOJ and I'm convinced that we will give them enough information and they will get their own information to make that determination.. I can tell you for sure that satellite radio competes with 10,000 terrestrial radio stations, we compete with over 1,000 HD radio stations that are on today, we compete with internet radio, we compete with all kinds of services that interestingly enough were not available at the time when our licenses were given... The idea of comparing where we are from a technology point of view today and comparing it to where it was 10-12 years ago when statements were made, we think its sort of not consumer friendly because the world has changed... We're going to have to convince them that its not anti-competitive"
- "This merger will give people more choice than they had before and lower prices."
- "No radio will be obsolete."
- "We are committed to offering lowering prices, we're saying we're not going to raise our price, and we're going to offer the consumer something that they have not had before. SIRIUS has never raised its price, we started our service for our first subscribers at $12.95, they are currently paying $12.95. Our vision would be that because we are competing with free radio, because $12.95 has only enabled us to get 10 million subscribers nationally, we are competing with the 200 million cars that have AM/FM radio, we are competing with the 109 million homes that have four radios. So the idea of raising a price to compete with free is bizarre and doesn't seem to work. You know what? Maybe you're concerned that you don't want to deal with the economics. I'm telling you today that we are committed to not raising prices and committed to in fact, lowering the price. If the consumer is going to be able to have more choice, guaranteed no price increase and be able to have an option (more flexibility for a lower price), we think that we would meet this standard of having absolutely saying that this merger is in the public interest. So, I look forward to working with the regulators, I look forward to working with this committee, and I look forward to working with the consumers and making sure that they see this advantage as well."

I think I'll leave it at that... The opening statements were 30 minutes alone. If you want to watch the entire meeting (which I highly suggest if you're a subscriber for either service since it addresses a lot more issues than what was mentioned in the opening statements), here is the link [requires RealPlayer or Real Alternative]

rtsp//video.c-span.org/15days/e022807_sirius.rm

[ba2300bf32f]In a nutshell[/sizea2300bf32f][/ba2300bf32f]

- Public Knowledge said one condition of the merger should be that SIRIUS Satellite Radio should offer local programming. Mel Karmazin shot the idea down (see video for details).
- There will be no a-la-carte either (it's not feasible on the current system). However SIRIUS plans to offer tier-based packages (for example, music-only or family programming for less than you pay now, but there will not be any price hikes for the programming you're paying for today and that dual content will cost less than if you were a dual subscriber today).
- SIRIUS and XM will continue to run as separate entities in the market and the radios you will buy today are not obsolete, they will in fact be able to access more content (via existing channel capacity on both the SIRIUS and XM network... example MLB on SIRIUS / NFL on XM)
- David Rehr points out that both SIRIUS and XM have violated FCC regulations (regarding terrestrial repeaters and FM transmitters not complying with Part 15 and other regulations) and backed out on promises (one being a dual-chip receiver that was supposed to be available to the consumer 10 years ago) and because of this, they should not be trusted as a monopoly... Goes on throughout the meeting referring to the satellite radio industry as a "duopoly"... The NAB are clearly threatened by the merger and David Rehr gets caught backpeddling twice. Once when he was questioned regarding music royalties... See video for details).
- The CFA claim they are pro-consumer and want to see competition, Mark Cooper also appeared to be threatened by the merger.
- The committee appeared to be more in favor of the merger than not, but a few of those in the committee sound like they want strict conditions if it's to be approved... Regardless, this isn't the first meeting, there will be another meeting coming up shortly.

h3x

01-03-2007 14:16:36

[b6794fa5531]SIRIUS is being sued for $48 million by radio manufacturer, Xact (U.S. Electronics)[/b6794fa5531]

[quote6794fa5531]Sirius Satellite Radio hardware manufacturer US Electronics, publicly known as Xact, has sued Sirius for $48 million, saying that Sirius has not paid monies due, interfered with US Electronics establishing relations with other companies, and also that Sirius withheld information about last year's FCC inquiry into the FM transmitters in radios.

Sirius, is claiming that its contract bars them from paying $41 million of the lawsuit to US Electronics due to limitation of liability provisions in the contract that was signed, and that they will fight this. The case will go to arbitration.

It looks like this could be the reason that US Electronics stopped producing radios last year, and also why a company called "Advanced Global Technology" started producing the Sportcaster for XM last year that looked similar to many of the other Xact radios, including the ReGo prototype that they designed for Sirius. While we have never confirmed it, Advanced Global Technology is similar to Xact, in that both websites never reference their parent company, and the radios are strikingly similar.[/quote6794fa5531]

[b6794fa5531]SIRIUS files Form 10-K with the SEC[/b6794fa5531]

http//investor.sirius.com/EdgarDetail.cfm?CIK=908937&FID=930413-07-1865&SID=07-00

- "We plan to add additional content to our internet offerings in the future."
- "We also maintain earth stations in Panama and Ecuador to control and communicate with our satellites."
- "'We cannot predict with certainty when Sirius Backseat TV will be introduced."
- "In October 2006, we and XM Radio filed our direct case in this proceeding with the Copyright Royalty Board and proposed a royalty rate for our satellite radio subscription revenue. SoundExchange also submitted its direct case in this proceeding and proposed a substantially higher royalty rate than we proposed."

h3x

02-03-2007 16:47:18

[b778d45eadb][u778d45eadb]Asscroft asks Speedy Gonzales to reject the SIRIUS/XM merger[/b778d45eadb][/u778d45eadb]

[quote778d45eadb]
Source Jeffrey Yorke

In an unprecedented move, former U.S. Attorney General John Ashcroft is asking current Attorney General Alberto Gonzales to reject Sirius and XM satellite radio companies� notion that they compete with a wide array of audio providers and for the Department of Justice to narrow its market view to just satellite radio.

�The parties, based on all press reports, hope that the Department will define the market so broadly as to include all terrestrial radio and a number of nascent cutting-edge technologies � the potentials of which remain without full development and deployment,� wrote Ashcroft in a three-page letter dated Feb. 27. �A close examination of the market reveals that Sirius and XM are the only two companies providing their product, which is nationwide mobile multi-channel audio content.� He added that the only way to keep markets free of unnecessary government regulations �is to promote and ensure that vigorous competition is enhanced and fostered.�

Ashcroft, who in May 2005 founded the Ashcroft Group, LLC, a Washington, D.C.-based lobbying firm specializing in strategic consulting, security and internal investigative services, and crisis counseling for countries, corporations and industry and political associations, added that �if these companies merge, no other entity can provide this content.� He reminded Gonzales, who replaced Ashcroft when he left the nation�s top law enforcer�s post after the 2004 election, that in issuing the original licenses for digital audio radio service (DARS), the FCC clearly stated that one operator could not buy out the other. �To create now a monopoly for a single licensee is to create a unitary dominant player who would have both the incentive and ability to use monopoly rents to undermine competition in media and broadcasting,� Ashcroft argued. He also knocks the satcasters for not delivering on their 1997 promise to the FCC to develop and market a receiver capable of receiving both satellite radio services.

Ashcroft points to the failed attempt by the Dish Network to merge with DirecTV in 2004, rejected by both DOJ and the FCC on the grounds that the deal �would have reduced the number of competitor s for many Americans from three to two, and in limited markets from two to one. � A similar analysis should determine that the proposed Sirius/XM merger, which reduces the number of competitors from two to one, raises most serious competitive concerns.�[/quote778d45eadb]

[b778d45eadb][u778d45eadb]"The SIRIUS Guarantee"[/b778d45eadb][/u778d45eadb]

Issued to the press

[quote778d45eadb]SIRIUS unleashed a national print and retail advertising campaign today, which sets forth the "SIRIUS Guarantee" in national and metropolitan publications. [u778d45eadb]The [b778d45eadb]guarantee says clearly[/b778d45eadb] that no SIRIUS radios will become obsolete as a result of a merger with XM.[/u778d45eadb] SIRIUS has millions of radios in the market, including many that are built into the vehicles manufactured by its automakers.

[u778d45eadb]Customers who sign up now for SIRIUS will have their subscription rate honored by the merged company.[/u778d45eadb] As a merged company, SIRIUS expects to be able to offer even more flexibility in subscriptions and programming selection.

Following a merger, SIRIUS will be able to offer the best of both services in a mix of programming that can be accessed by existing radios, including such critically acclaimed SIRIUS programming as

li 100% commercial-free music

li The best sports line-up including the NFL, NASCAR, NBA and college
sports

li Top personalities, such as Howard Stern, with two dedicated full-time
channels, Martha Stewart Living Radio, CosmoRadio, Playboy Radio, and
Blue Collar Comedy channel, among many others

About SIRIUS

SIRIUS, "The Best Radio on Radio," delivers more than 130 channels of the best programming in all of radio. SIRIUS is the original and only home of 100% commercial free music channels in satellite radio, offering 69 music channels. SIRIUS also delivers 65 channels of sports, news, talk, entertainment, traffic, weather and data. SIRIUS is the Official Satellite Radio Partner of the NFL, NASCAR, NBA and NHL, and broadcasts live play-by- play games of the NFL, NBA and NHL, as well as live NASCAR races. All SIRIUS programming is available for a monthly subscription fee of only $12.95.

SIRIUS Internet Radio (SIR) is a CD-quality, Internet-only version of the SIRIUS radio service, without the use of a radio, for the monthly subscription fee of $12.95. SIR delivers more than 75 channels of talk, entertainment, sports, and 100% commercial free music.

SIRIUS products for the car, truck, home, RV and boat are available in more than 25,000 retail locations, including Best Buy, Circuit City, Crutchfield, Costco, Target, Wal-Mart, Sam's Club, RadioShack and at shop.sirius.com.[/quote778d45eadb]

[b778d45eadb][u778d45eadb]"The XM Promise"[/u778d45eadb][/b778d45eadb]

Issued to the press

[quote778d45eadb]As you may have heard, XM and Sirius recently announced that they will merge to form the nation's premier audio entertainment service. This new company will be able to provide consumers with even better programming and more choices. This merger should be completed in late 2007. But between now and the merger date, we want to be sure that our 7.6 million customers, and anyone considering the purchase of XM Radio, know all the facts. This is our commitment to all of our customers � whether you are a current subscriber or plan to subscribe in the coming months.

As long as you are an XM subscriber, your XM radio will continue to receive XM's great programming. And following the merger, [u778d45eadb]we [b778d45eadb]expect[/b778d45eadb] that these existing radios will be able to receive a mix of programming from both services to bring you even more choices.[/u778d45eadb]

XM's programming, including Major League Baseball�, Oprah & Friends�, Bob Dylan, Opie & Anthony and commercial-free music channels, will not be interrupted by the merger. In the future, we will be able to offer the best of both companies' programming.

As the #1 satellite radio service, XM is committed to providing the highest-quality audio entertainment and customer service available today. If you have any questions, please visit our website, xmradio.com, or call XM Listener Care at 1-800-XMRADIO (1-800-967-2346).

There has never been a better time to get an XM radio. Our car, home and portable radios are available at retail stores, online at xmradio.com, and as a factory-installed feature in many new cars and trucks. For special offers on XM, visit xmradio.com today.[/quote778d45eadb]

[b778d45eadb][u778d45eadb]XM Canada raises their prices again, strips free online use for subscribers[/u778d45eadb][/b778d45eadb]

[quote778d45eadb]In an email to its subscribers yesterday, XM radio has announced new rate hikes to its customers effective September 1st, 2007.

The announcement comes just six months after the company announced its first price increase and only sixteen months after XM started offering satellite radio service in Canada.

Last September, the company increased the cost of its satellite radio programming 15%, from $12.99 per month to $14.99 per month, for customers who signed up after September 1st, 2006. Customers who signed before last September will see their rates increase on September 1st of this year.

Yesterday the company announced that, [u778d45eadb]effective September 1st of this year, XM Radio Online (XMRO), which previously was free for all XM subscribers, will cost new subscribers an additional $9.99 per month. Existing subscribers will start by paying $1 extra a month this September and the full $9.99 per month in September of 2008.[/u778d45eadb]

XM Radio Online (XMRO), which is still free for XM U.S. subscribers, provides a live stream of approximately 60 XM satellite radio stations to any Mac or Windows-based PC with Internet access. The service was made available to XM subscribers last July and was billed as "unique service" that was "free to XM Canada subscribers."[/quote778d45eadb]

h3x

07-03-2007 16:13:56

[b616d5a7a1a][u616d5a7a1a]Mel Karmazin at the House Subcommittee on Telecommunications and the Internet[/b616d5a7a1a][/u616d5a7a1a]

I didn't feel like taking any notes, so here is someone else's notes

[quote616d5a7a1a]330pm Opening statements by committee members are still being made. It seems there will be quite a few topics addressed by this committee. Some of the topics addressed include increasing the cap on the number of stations owned by a licensee in large markets, broadcaster licensees should better reflect the population by including more women and minorities, the sampling of music to create mash-ups should not be held to the same copyright standards as a song-writer that duplicates another artist's bass line, local radio provides to the markets they serve local content which satellite does not, technology is out pacing pacing laws that are currently in place and has changed they way consumers gain access to information, will the merger of Sirius and XM result in increased costs, less innovation, and other drawbacks found if there is only one player in the satellite radio market?

335pm We finally finish with the opening statements by the committee members and move to the guest witnesses.

345pm Peter Smyth of Greater Media, Inc and representing the NAB spoke in opposition to the merger claiming that terrestrial radio does not compete in the national market of satellite radio and there would be a monopoly in that market after the merger. Smyth cited FCC violations of the repeaters for XM and SIRIUS and the lack of a device that is able to receive a signal from both services.

355pm Robert Kimball representing RealNetworks and other internet broadcasters spoke in favor of a delay to the merger between Sirius and XM all of the players in the digital audio market can be placed on a level playing field.

400pm Mel Karmazin was allowed to make an opening statment. He made a number of statements about the merger that we've heard before and said that he hoped to be asked a lot of questions.

405pm Gene Kimmelman spoke on behalf of the Consumers Union. He stated there are distinct differences between mobile digital audio devices and terrestrial radio.[/quote616d5a7a1a]

[b616d5a7a1a][u616d5a7a1a]House Panel Told To Reject Sirius' Competition Argument[/u616d5a7a1a][/b616d5a7a1a]

[quote616d5a7a1a]By Corey Boles
Of DOW JONES NEWSWIRES

WASHINGTON (Dow Jones)--The satellite radio market is easily distinguishable from other forms of audio media and its participants are therefore distinct, a leading consumer advocate told a panel of House lawmakers Wednesday.

Testifying before the House Commerce Committee's telecommunications subcommittee into the future radio, Gene Kimmelman, a vice president with the Consumers Union, said that the argument put forth by the two satellite radio companies didn't hold water.

"The product and geographic market characteristics of satellite radio are easily identifiable and quite distinct from other mobile and stationary audio products," said Kimmelman in his opening remarks.

As part of their proposed merger, Sirius Satellite Radio Inc. (SIRI) and XM Satellite Radio Holdings Inc. (XMSR), the companies have said they are not competing just against each other but against traditional, HD and Internet-based radio stations as well as technologies such as Apple Inc.'s (AAPL) Ipod.

Executives at the company need to convince regulators at the Department of Justice's antitrust unit and the Federal Communications Commission that theirs is more than a market of two players.

Also testifying at the hearing, Robert Kimball, senior vice president at Internet media software developer RealNetworks Inc. (RNWK), said the committee should reject the argument that satellite radio competes with online radio broadcasters.

He said that laws such as the Copyright Act hamper the ability of Internet radio to compete effectively.

"I suggest to you that any XM-Sirius merger that relies upon Internet radio as the justifying competition should be rejected until Congress corrects the Copyright Act's bias against the internet," said Kimball.

In his opening statement to the hearing, Sirius Chief Executive Mel Karmazin repeated his mantra that the two companies compete against the range of audio media.

He also said the company would be willing to enter into binding guarantees over price levels post-merger.

"We are prepared at the appropriate time to discuss each of these issues with regulators and to guarantee these benefits as a condition of our merger approval," said Karmazin. "From our standpoint, these guarantees are not only good for consumers, they are also essential to the long term success of the combined company."

Rep. Edward Markey, D-Mass., the chairman of the subcommittee, said the merger affected a wide range of issues such as consumer prices and equipment, radio content and the ability of content providers to compete.

Republican Texas lawmaker and ranking member of the overall House Commerce Committee, Joe Barton, acknowledged in his opening comments that it was difficult to define the market in which Sirius and XM operate.[/quote616d5a7a1a]

[b616d5a7a1a][u616d5a7a1a]Sirius, XM To Use Separate Networks Until 2016-CEO[/u616d5a7a1a][/b616d5a7a1a]

[quote616d5a7a1a]By Corey Boles
Of DOW JONES NEWSWIRES

WASHINGTON (Dow Jones)--Sirius Satellite Radio (SIRI) Chief Executive Mel Karmazin said Wednesday that his company and XM Satellite Radio Holdings (XMSR) would continue to operate on separate networks for at least 10 years after a successful merger.

Testifying before a House telecommunications subcommittee hearing into the proposed merger between the two companies, Karmazin said that the earliest the two companies could merge their networks would be in 10 to 12 years' time.

He said that Sirius was planning to soon launch three new satellites into orbit, which would be operable until between 2016 to 2018.

Karmazin was responding to questioning from Edward Markey, D-Mass., the subcommittee chairman, about whether or not the merger between the two companies couldn't result in spectrum being freed up for other purposes.

He said that while the two companies would make programming from each others' networks available to subscribers, they had pledged to ensure that no existing customers' radios were rendered obsolete by the merger.

Sirius had previously announced the launch of the three satellites. So far it has said the first will be in the air in the second half of 2008.

Earlier in the hearing, Republican lawmaker Lee Turner, of Nebraska, said that he was skeptical of the benefits to consumers of the merger going forward.

Rep. Rick Boucher, D-Va., repeated his statement of last week that he supported the merger as long as there were sufficient attachments to ensure consumer protection.

Separately, the Senate Judiciary Committee's antitrust subcommittee announced earlier Wednesday that it would hold its own hearing into the proposed merger, the third congressional panel to do so since the deal was announced three weeks' ago.[/quote616d5a7a1a]

[b616d5a7a1a][u616d5a7a1a]Merged Satellite Radio Co Would Pay Artists For Music[/u616d5a7a1a][/b616d5a7a1a]

[quote616d5a7a1a]By Corey Boles
Of DOW JONES NEWSWIRES

WASHINGTON (Dow Jones)--A merged satellite radio company would continue to pay artists for the right to broadcast their music, Sirius Satellite Radio (SIRI) Chief Executive Mel Karmazin said Wednesday.

Karmazin told lawmakers on the House Telecommunications subcommittee that he was in favor of remunerating artists to allow satellite radio subscribers to record music from their radio.

"We're implementing my viewpoint at Sirius. We have made an accommodation with the various music labels," said Karmazin. "After the merger, I will be the CEO, and all I can say is you know my views on the subject."

Sirius has reached an agreement with the music industry to pay them while rival XM Satellite Radio Holdings (XMSR), which plans to merge with Sirius, has resisted doing so and is currently locked in a court battle with the music industry.

Karmazin said he couldn't comment on XM's legal case, nor did he know whether the matter would be resolved by the time the merger, if approved, would be completed.[/quote616d5a7a1a]

Wolfeman

07-03-2007 16:35:59

http//gizmodo.com/gadgets/home-entertainment/totally-unbiased-national-association-of-broadcasters--ad-slams-siriusxm-242396.php

http//cache.gizmodo.com/assets/resources/2007/03/monopoly.jpg[" alt=""/img421661da5f]

h3x

10-03-2007 00:31:37

[b848b0f7a03][u848b0f7a03]NAB president David Rehr finally admits that satellite radio is competition[/u848b0f7a03][/b848b0f7a03]

[quote848b0f7a03]�The Future of Broadcasting�
The National Press Club � October 4, 2006
Remarks of David Rehr, President and CEO, National Association of Broadcasters

"But even with all of these expanded business opportunities, we must address new competitors.

Who are the newer competitors? ... On the radio side, we have SATELLITE RADIO, Internet radio, iPODs, other MP3 players, cell phones and others. How will we compete?"[/quote848b0f7a03]

So David, you're telling us that Satellite Radio is a monopoly when Satellite Radio faces the same competition from Terrestrial Radio, Internet Radio, MP3 players, and cell phones?

If anything, Clear Channel is a monopoly.

Way to backpedal, Mr. Rehr. roll

[b848b0f7a03][u848b0f7a03]Legacy (current) radios will continue to work until at least 2016[/u848b0f7a03][/b848b0f7a03]

[quote848b0f7a03]If the two satellite radio companies merge, they would need to support two separate technology platforms until about 2016.

This is key, as Wall Street analysts have been debating how much money Sirius and XM might save by merging and how far down the road those benefits would be realized.

The 2016 date is from Sirius President/CEO Mel Karmazin, who testified before the House Telecom and Internet Subcommittee this week in a hearing about the future of radio. The satcasters don�t want to make current receivers obsolete, he said.

In other words, Sirius signals can�t transmit and be received by XM radios and vice versa.

When asked by Subcommittee Chairman Ed Markey, D-Mass., if a merged company might be able to give up one of its two chunks of 12.5 MHz spectrum space, Karmazin said that using compression technology, each company could �squeeze more channel capacity� out of their respective services to add some more programming, but could not give up a big swath of spectrum.

Yet, he left the door open by saying. �We�re not spectrum hogs� and �would be open to other ideas.�[/quote848b0f7a03]

Tholek

12-03-2007 18:16:35

I'm somewhat relieved, but the constant ups and downs in this process is leading me to hit the bottle. Pepto, that is. ;)

I'm not even a shareholder...

dmorris68

12-03-2007 18:35:38

Hey, here's a Sirius (ha!) question

Do the Sirius comedy channels have as much annoying advertising as XM's? I love XM and all, but when I joined I was under the very wrong impression that all of it was commercial-free. Apparently that only applies to the music channels. I love comedy and listen to it almost as much as music, but it is incredibly annoying to hear the same droning commercials after every 2-3 bits of standup. It's a non-stop barrage of Debt Relief-Tax Relief-Real Estate Investment-GotoMyPC-GotoWebinar-Adam&Eve commercials. 60 seconds per spot, 4 spots minimum at a time. Which is quite aggravating when you're driving 10-20 minutes at a time and only get to hear half that in comedy routines.

Tholek

12-03-2007 18:58:03

[quote38c010a087="dmorris68"]Hey, here's a Sirius (ha!) question

Do the Sirius comedy channels have as much annoying advertising as XM's? I love XM and all, but when I joined I was under the very wrong impression that all of it was commercial-free. Apparently that only applies to the music channels. I love comedy and listen to it almost as much as music, but it is incredibly annoying to hear the same droning commercials after every 2-3 bits of standup. It's a non-stop barrage of Debt Relief-Tax Relief-Real Estate Investment-GotoMyPC-GotoWebinar-Adam&Eve commercials. 60 seconds per spot, 4 spots minimum at a time. Which is quite aggravating when you're driving 10-20 minutes at a time and only get to hear half that in comedy routines.[/quote38c010a087]

Are you referring to the Clear Channel programmed channels? If so, XM got screwed when doing a deal with them, as they got to add commercials, and XM went and created new channels of their own to compete against them.

Then again, there are commercials during O&A too, which I didn't expect way back when, but it's a helluvah lot less than FM. A cross to bear, for sure, but I'm already in deep. ;)

dmorris68

12-03-2007 19:04:59

I don't think Clear Channel does XM's comedy channels, but I could be wrong.

And the music channels I typically listen to (Flight 26, 90's, 80's) don't have any commercials other than the brief DJ/station ID spots every once in awhile. I love that compared to FM music, I just wish the comedy channels were that way.

h3x

12-03-2007 19:11:12

The SIRIUS comedy channels don't even come close to being as bad as the comedy channels on XM when it comes to commercials...

There are call sign plugs (i.e. You're listening to Raw Dog, comedy uncensored... SIRIUS 104) after 2-3 skits...

Jim Breuer Unleashed is on right now and I've been listening for the last hour and I've only heard one commercial break (2 quick advertisements for other SIRIUS channels [Laugh Break and The Catholic Channel], 1 commercial and 1 call sign plug).

Tholek

12-03-2007 19:34:27

Actually, come to think of it, the breaks during the FM O&A show are due to it being simulcast on FM too. Thankfully, they fill with uncensored material, and go long without break during their XM-exclusive show. I'm not sure how long the breaks are on the other XM comedy channels are though. (Oh, and all the CC ones [if764408c3c]are[/if764408c3c] music. I just checked)

h3x

12-03-2007 20:00:52

The way I see it, with talk channels, commercials are to be expected... Try talking 5 hours straight without a quick break.

Also, channels like CNN will have more commercials than exclusive non-music channels since they are simulcast on television (which obviously have longer commercial breaks).

As long as the music is 100% commercial free and there are limited commercials on the talk channels, I'm content.

dmorris68

12-03-2007 21:11:27

Well, the comedy channels aren't exactly the same as live talk channels. The comedy bits are pre-recorded and repeated, so it's not like they need a break, and they're not simulcast. Aside from the occasional special show, the only thing live is the "DJ" person who comes on every so often, just like with the music channels, to remind you of the station and to tell you what's coming up later.

I was just wondering if the equivalent Sirius channels were similarly commercialized.

And my gripe is not necessarily that there are commercials, but the type, length, quality, and frequency of them. For a pay service I'd expect much less. It's like paying $15.00 for a movie ticket and popcorn, then having to sit through 15 minutes of Coke and Levi's commercials at the theater. Something else that gets on my nerves...

h3x

12-03-2007 21:34:15

[quote6527d460f0="dmorris68"]Well, the comedy channels aren't exactly the same as live talk channels. The comedy bits are pre-recorded and repeated, so it's not like they need a break, and they're not simulcast. Aside from the occasional special show, the only thing live is the "DJ" person who comes on every so often, just like with the music channels, to remind you of the station and to tell you what's coming up later.

I was just wondering if the equivalent Sirius channels were similarly commercialized.

And my gripe is not necessarily that there are commercials, but the type, length, quality, and frequency of them. For a pay service I'd expect much less. It's like paying $15.00 for a movie ticket and popcorn, then having to sit through 15 minutes of Coke and Levi's commercials at the theater. Something else that gets on my nerves...[/quote6527d460f0]

Short answer, SIRIUS has less commercials than XM and overall I think you'll enjoy the SIRIUS experience if you give it a shot.

Like I said about the comedy channels, most of the commercials broadcast are from SIRIUS themselves (i.e. quick plug for CNN on SIRIUS 132. or announcements of upcoming events on the channel you're listening to).

h3x

17-03-2007 14:31:49

[bd1bda82bbd][ud1bda82bbd]No longer a monopoly? SIRIUS/XM has competition.[/ud1bda82bbd][/bd1bda82bbd]

Slacker Radio

[quoted1bda82bbd]Q. What is 'Beta' about the Slacker music service?
A. We are still working to ensure that you have the best music experience when you visit Slacker.com. Please enjoy the free music service. If you have any comments for us, let us know through the 'Feedback' option. We are adding new music, features and updates almost daily and look forward to your input to make Slacker the best service.

Q. Do I need anything special to listen to Slacker Personal radio on the web?
A. All you need is a web browser and an Internet connection to play Slacker personal radio. We are constantly testing various browser and system configurations to ensure that playback is as seamless as possible. If you encounter any issues, try reloading the Slacker.com website. Also check your browser for any messages about updates or necessary installations. Please send us feedback if you have any issues.

Q. What is 'Artist Radio' and why do I hear different artists than the one(s) that I chose?
A. When you play an 'Artist Radio' station, we create a great radio station based upon the artist(s) that you choose AND other artists that are related to that artist. If you have comments about the selection of music that we play for you, please use our "Feedback" option below the web player.

Q. I selected an artist to play, but that artist never appears on the station when I play it. What's wrong?
A. During our Beta period, we will constantly be adding new music to the Slacker service. There may be times during this period when our library has information about the artist but no available music for that artist. You still can build stations that will play music by related artists and when our library is updated, songs by that artist will appear. Our library will be very dynamic, so keep trying. Your artists are likely to appear and begin playing as soon as we add them.

Q. I don't see the genre station that I would like to play. Are more stations coming?
A. We are working to provide just over 100 expertly programmed stations for to you choose from. We will always be looking to add unique genres that you want to hear. If you have a suggestion for a station you would like to see, please let us know through our "Feedback" section below the web player.

Q. How do I rate songs to let you know what I like and what I don't like while my stations are playing? A. There are two buttons to the right of the volume setting in the web player, one with a heart icon and one with a 'ban' icon. While you are listening to a station, if a song appears that you love, press the heart button. We will mark that as a favorite on that station. If a song plays that you don't like, press the 'ban' button. We won't ever play that song on that station again.

Q. I just received a message telling me that I have reached my skip limits. Why did this happen and what do I do?
A. While all of our content and stations are available in our free service, there is a 6 song skip limit for each station per hour. If you reach the limit, you can switch to another station, where you will have a fresh start on your skip limits. The initial station will regain those six skips over the next hour, whether or not you listen to that station. Also, very soon we will be offering a premium radio service which will eliminate the skip restrictions for all stations. For more information on this, please check out our Products section.

Q. I accidentally marked a song as a favorite (or accidentally banned a track that I like) on one of my stations. What do I do now? A. While you are playing the station that you would like to modify, look for a drop down arrow near the station (or artist station) name. When you click on this arrow, you will see a menu featuring an option to "Edit" your station. Slacker radio displays a screen where you can modify all of your favorite or banned songs. And you can rename your station to whatever you choose.

Q. I have created new stations (or modified an existing one). How do I rename it to something different? A. While you are playing the station that you would like to modify, look for a drop down arrow near the station (or artist station) name. When you click on this arrow, you will see a menu featuring an option to "Edit" your station. Slacker radio displays a screen where you can modify all of your favorite or banned songs. And you can rename your station to whatever you choose.

Q. I was listening to music and I received an error and/or the web player stopped responding. What do I do?
A. First, try to refresh the web page to allow the web player to reload and see if you are able to resume playback. In addition, if you receive an error (or other message), please send us the information in the 'Feedback' area. We are constantly releasing updates to the beta web player to reduce the chances that you will see this in the future. If you do encounter a problem and choose to send us your feedback, please include the type (and version if possible) of the web browser that you were using. We are testing many configurations with our web player to ensure that you have the best experience possible.

Q. I've heard that there is a device coming that will allow me to take my stations with me wherever I go. Where do I learn more about this?
A. A Slacker portable device is coming soon. For information on availability and features, please check out our Products section.

Q. Will I still be able to maintain my free music experience even with a Slacker portable device?
A. Yes. While a Slacker device will be able to take great advantage of the premium radio service features, you are not required to upgrade your service to take your music with you on a Slacker portable music player.

Q. I've heard that you have satellite technology. Is this true and when is it available?
A. That is correct. We have a unique way to deliver the Slacker personal radio experience over satellite through our Slacker satellite car kit. It will work together with your Slacker portable device so that you can receive new music while you drive. And it plays through your car stereo. Please check out our Products section.

Q. Are there premium upgrades to the free radio service that will give me more features and less limitations?
A. Yes. Soon we will have a premium radio service that will eliminate the skip limits of free radio, eliminate any advertising, and allow you to play the tracks you mark as 'favorites' whenever you like, either on your PC or on your Slacker device. Please check out our Products section.

Q. How will I know when new features or products arrive from Slacker?
A. You can visit our News section to stay up to date on Slacker releases.

Q. I am having trouble sending my stations to friends, why does Outlook (or other email clients) open after I click "Send to Friend"?
A. When you click "Send to Friend" we will open your default email client so you can easily add names from your address book. If you prefer to use another application to send your station, you can cut and paste the URL we create for you. With this URL you can use web mail, instant messaging, or other email clients to share your station.[/quoted1bda82bbd]

http//www.slacker.com (Free online player is on the front page)

dmorris68

17-03-2007 19:03:05

How is that considered competition? It's just another internet radio service, with a paid service to remove ads. Not exactly the same market as a satellite broadcast that is available everywhere, not just where you can get an internet connection.

Tholek

17-03-2007 19:11:14

[quotebd45ae49d7]Q. I've heard that you have satellite technology. Is this true and when is it available?
A. That is correct. We have a unique way to deliver the Slacker personal radio experience over satellite through our Slacker satellite car kit. It will work together with your Slacker portable device so that you can receive new music while you drive. And it plays through your car stereo. Please check out our Products section.[/quotebd45ae49d7]

Sounds like competition to me. shrug

dmorris68

17-03-2007 19:14:51

[quote0401fc5601="Tholek"][quote0401fc5601]Q. I've heard that you have satellite technology. Is this true and when is it available?
A. That is correct. We have a unique way to deliver the Slacker personal radio experience over satellite through our Slacker satellite car kit. It will work together with your Slacker portable device so that you can receive new music while you drive. And it plays through your car stereo. Please check out our Products section.[/quote0401fc5601]

Sounds like competition to me. shrug[/quote0401fc5601]
Ah, my bad. I was skimming through and apparently missed that one. I saw them talking about a "portable player" being produced and figured it would just cache an internet feed for later playback.

Interesting indeed, then...

h3x

17-03-2007 19:25:47

I hear it's going to be transmitted on the Ku band.

h3x

19-03-2007 19:48:51

[bd6c46b27bf][ud6c46b27bf]Mastercard is not happy with the NAB and their "mock ads" against SIRIUS/XM[/bd6c46b27bf][/ud6c46b27bf]

It seems that the often-parodied MasterCard commercials are off limits to the NAB. The trade group's full-page "Priceless" ads in a few Capitol Hill publications (asking Congress to oppose the Sirius-XM merger) brought the complaint of copyright infringement from MasterCard. The ad showed a giant "Credit Card" with XM-Sirius over MasterCard's familar red and orange circles. Below the giant credit card, the copy read as follows

Howard Stern = $500 million for five years
Major League Baseball = $650 million for eleven years
National Football League = $220 million for seven years
Oprah Winfrey = $55 million for three years
Martha Stewart = $30 million for four years

Asking for a government bailout after making bad business decisions... PRICELESS.

In a memo sent today to some 40 board members and NAB's senior staff, Executive VP/Marketing & Communications and Regulatory Affairs Michelle Lehman said the original plan was to utilize the ad in numerous ways. "In fact, it has already garnered a buzz on Capitol Hill and some earned media hits -- reporters really got a kick out of it!" she wrote. But, Lehman added that "MasterCard was not so amused" and NAB assured them that "the ad would go no further."

Since the merger plans were announced, NAB has run a series of full-page print ads asking Congress to oppose the merger.

Wolfeman

20-03-2007 10:55:26

The ads are super lame to boot...

h3x

20-03-2007 11:54:28

[b5e7cd49603][u5e7cd49603]New SIRIUS/XM Ad promoting the merger[/b5e7cd49603][/u5e7cd49603]

http/" alt=""/img488.imageshack.us/img="488/6991/xmsiriusnumbersaddk3.jpg[" alt=""/img5e7cd49603]

Also, there is a Senate Subcommittee meeting going on right now... More on that later on today.

h3x

21-03-2007 19:42:22

[b294bcd496f][u294bcd496f]Senator questions SIRIUS-XM merger[/u294bcd496f][/b294bcd496f]

[quote294bcd496f]WASHINGTON (AP) -- The chairman of a Senate antitrust panel expressed skepticism Tuesday regarding claims by two satellite radio companies that their merger would not eliminate competition or lead to higher prices.

During a hearing on the proposed combination of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., Sen. Herb Kohl, D-Wis., questioned assertions by Sirius's chief executive that the combined company would still face significant competition with land-based radio, iPods and Internet radio.

"We must view these claims with a healthy degree of skepticism," Kohl said. "Over-the-air radio does not come close to duplicating the impressive array of program offerings of satellite radio."

Mel Karmazin, chief executive of Sirius, nevertheless stuck to his argument that a combined Sirius-XM would face heavy competition from other sources of music, sports and news.

"There is no question that there is robust competition in this area," he said. Karmazin testified before the Senate Judiciary subcommittee on antitrust, competition policy and consumer rights, which Kohl chairs.

Sirius offered to pay $4.7 billion in stock for XM when the transaction was announced Feb. 19.

Karmazin said that Sirius has not raised monthly subscription price in the five years it has been in business. "The reason the price has not been raised is because we are competing with free," he argued.

The combined company would be able to pass on some cost savings to consumers, Karmazin said, and [b294bcd496f]would charge a lower rate of $8.95 to $9.95 per month for basic service. Both XM and Sirius currently charge subscribers $12.95 per month for basic service.[/b294bcd496f]

Kohl pressed Karmazin on whether the combined company would raise prices in the future, expressing concern that a single satellite radio company could sign exclusive contracts with sports leagues or popular entertainment providers and then hike rates.

"And, you have no competition ... Man, what a business," Kohl said.

Karmazin said he was open to regulatory oversight of price increases as a condition of the merger.

Utah Sen. Orrin Hatch, the senior Republican on the panel, appeared to be more receptive to Karmazin's argument that the company would face competition from broadcast radio and other sources.

"I personally don't believe that there will be a lack of competition if you're successful," he said.

But Mary Quass, who testified for the National Association of Broadcasters, said that over-the-air radio doesn't compete nationally with satellite radio. Broadcast radio cannot offer the bundle of services that Sirius and XM offer, she added.

"XM and Sirius want government permission to take two competitive companies and turn them into a monopoly," Quass said.

Kohl's subcommittee is the third congressional panel since Feb. 19 to consider the competitive impact of the planned merger although so far there are no congressional plans to prevent the transaction.

The proposed merger still faces what observers say could be challenging antitrust reviews by the Federal Communications Commission and the Justice Department. When the FCC created the satellite radio industry in 1997, it did so on the condition that the two companies would not merge. XM and Sirius execs say the industry has changed so much since then that a merger should be allowed.

Shares of XM Satellite fell 5 cents to $13.49 in aftermarket trading after gaining 10 cents to close at $13.54 on the Nasdaq Stock Market. Sirius shares rose a penny to $3.32 in aftermarket trading after finishing up 2 cents to $3.31, also on Nasdaq.[/quote294bcd496f]

SIRIUS filed Form 8-K with the SEC... The form is available here[=http//edgar.brand.edgar-online.com/fetchFilingFrameset.aspx?FilingID=5046539&Type=HTML]here

EatChex89

21-03-2007 22:47:36

I hope they don't merge. I don't see how you can't call it a monopoly. Satellite doesn't compete with terrestrial radio. That's like saying regular TV competes with cable TV..

h3x

29-03-2007 18:39:51

Speaking of TV...

[b807323f38b][u807323f38b]SIRIUS announces Backseat TV[/b807323f38b][/u807323f38b]

http//www.orbitcast.com/archives/sirius-backseat-tv.jpg[" alt=""/img807323f38b]

[quote807323f38b]SIRIUS Satellite Radio�s Backseat TV� Launches Only on Chrysler Group Vehicles

li First ever live in-vehicle TV network, exclusive to the automotive market for 2008 model-year Chrysler, Jeep� and Dodge vehicles
li Nickelodeon, Disney Channel and Cartoon Network � the biggest names in family TV � will deliver three live channels directly to the vehicle

New York - SIRIUS Satellite Radio (NASDAQ SIRI) and Chrysler Group announced today that Chrysler Group will be the exclusive automaker to offer SIRIUS Backseat TV� in its 2008 model-year vehicle lineup. SIRIUS Backseat TV� is a dynamic and pioneering TV service that delivers live TV from the best family TV programmers directly to the vehicles.

Whether driving cross-country or cross-town, families will be able to access SIRIUS Backseat TV��s high quality television entertainment and family TV fare through a simple, easy-to-operate video service. SIRIUS Backseat TV� is live TV programming from the world�s most trusted brands in family entertainment � Nickelodeon, Disney Channel and Cartoon Network. The service will be available in select 2008 model Chrysler, Jeep� and Dodge vehicles, beginning with the all-new 2008 Chrysler Town & Country and Dodge Grand Caravan minivans, available later this year.

Three channels of children�s TV featuring many of the most well-known kids� programming will be available, including Nickelodeon, Disney Channel and Cartoon Network. Rear-seat passengers will be able to watch shows such as Nickelodeon�s �SpongeBob SquarePants,� Disney Channel�s �Cory in the House,� and Cartoon Network�s �Foster�s Home for Imaginary Friends.�

�Chrysler Group is committed to offering innovative technologies that are right for our customers,� said Frank Klegon, Executive Vice President � Product Development, Chrysler Group. �SIRIUS Backseat TV� makes its world debut in Chrysler Group�s all-new 2008 minivans and marks the third SIRIUS service � along with SIRIUS radio and SIRIUS real-time traffic � available to Chrysler Group customers.�

Mel Karmazin, CEO, SIRIUS said, �SIRIUS is dedicated to bringing Chrysler Group customers the best in-vehicle entertainment available anywhere, whether it is through radio or video. SIRIUS Backseat TV�, with its best-in-class programming from our partners - Nickelodeon, Disney Channel and Cartoon Network - further enhances the already exceptional driving experience for Chrysler Group customers. In SIRIUS� first venture in visual entertainment, I am pleased to have the three most original family-centered programming providers in TV. Just as we provide The Best Radio on Radio, this allows us to launch SIRIUS Backseat TV� as the Best TV in the Backseat.�

�We're excited to work with SIRIUS and Chrysler Group to bring kids' number-one network � Nickelodeon � to even more places where our fans can experience and enjoy our hit shows and characters,� said Denise Dahldorf, Executive Vice President � MTV Networks Content Distribution and Marketing. �Like all of our MTVN brands, our goal for Nickelodeon is to be everywhere our audiences are, and the launch of SIRIUS Backseat TV� gives kids and families even more screens to interact with us.�

�Disney Channel viewers expect to be able to access their favorite shows and stars wherever they are on a wide variety of devices," said Ben Pyne, President � Disney and ESPN Networks Affiliate Sales and Marketing. "We are excited to team with SIRIUS and Chrysler Group to super-serve our young viewers and deepen their connection with our shows and brands.�

�Cartoon Network Mobile is a customized programming service designed for the on-the-go mobile lifestyle,� said Coleman Breland, Executive Vice President of sales and marketing for Turner Network Sales. �This new venture with SIRIUS is one we think parents will see the benefits of and represents the next generation of back seat entertainment.�

SIRIUS Backseat TV will also be available on the 2008 Chrysler 300, Dodge Charger, Dodge Magnum, Jeep Commander and Jeep Grand Cherokee.

SIRIUS Backseat TV operates via an in-vehicle satellite video receiver and two small roof-mounted antennas. Programming is displayed on the vehicle�s second- and/or third-row video screens, and channel name, program title and rating will be broadcast and displayed on the screen(s). For added flexibility, rear-seat passengers can enjoy SIRIUS Backseat TV while front-seat occupants listen to SIRIUS Satellite Radio. The system can be operated from either the rear-seat entertainment unit or the radio head unit. In addition, when the vehicle is in Park, programming can be displayed on the MyGIG screen for front-seat viewing.

SIRIUS Backseat TV is available for a Manufacturer�s Suggested Retail Price (MSRP) of $470 -- which includes the first year of service -- when packaged with Chrysler Group�s Rear Seat Entertainment System and SIRIUS Satellite Radio. After the first year, SIRIUS Backseat TV is available for $7 per month when packaged with SIRIUS Satellite Radio ($12.95 per month). SIRIUS Backseat TV will only be available to SIRIUS Satellite Radio subscribers.[/quote807323f38b]

... and speaking of Anti-Merger

[b807323f38b][u807323f38b]Consumer Coalition for Competition in Satellite Radio (C3SR) is supported by the NAB[/b807323f38b][/u807323f38b]

[quote807323f38b]Corporate Crime Reporter has revealed that C3SR - the consumer group that was created to oppose the merger between XM and Sirius - is in fact supported by the NAB.

Separately... and perhaps more importantly... in the recent Criterion Economics Study about the XM-Sirius merger there's a footnote (on page 3) stating
"The Consumer Coalition for Competition in Satellite Radio is a consumer group consisting of Sirius and XM subscribers. It is supported by the National Association of Broadcasters."

Consumer Coalition For Competition In Satellite Radio (C3SR) founding member Chris Reale actually works full time at Williams Mullen Strategies - the lobbying arm of the Williams Mullen law firm - whose communications practice is headed by Julian Shepard, who just happens to be a former assistant general counsel at the NAB.

When Corporate Crime Reporter confronted Reale about who is funding C3SR, he wouldn't say, but did admit that the NAB "supports" the group. Reale refuses to identify the nature of NAB�s support.

"If we were out there in the media telling people who funded us, it would detract from support from different groups," Reale said. "I didn�t think that was a wise course."[/quote807323f38b]

h3x

30-03-2007 00:53:02

[b3599ca61b5][u3599ca61b5]ABA and HAB Join NAB in Petition to Deny SIRIUS Authority to Operate Repeaters in Hawaii and Alaska[/u3599ca61b5][/b3599ca61b5]

On March 19, the Alaska Broadcasters Association and the Hawaii Association of Broadcasters joined the NAB in a Petition to Deny SIRIUS the authority to operate repeaters in Alaska and Hawaii.

SIRIUS has stated that they have subscribers in Alaska and Hawaii; however, we doubt any subscriber in Hawaii actually receives a signal.

There are reports of subscribers in Alaska that receive satellite radio. Whether there are subscribers in Anchorage, Juneau, or Fairbanks is unknown to us. The Alaska Broadcasters Association should explain to the good people of Alaska why they should be second class citizens. We invite them to let the FCC know how they feel about it. The people of Alaska deserve the same choices as the rest of the union. As far as Hawaii goes, we are not convinced that anyone receives satellite radio there with a conventional satellite radio receiver.

Tholek

30-03-2007 02:20:45

I had wondered if repeaters existed where you live or not.

tylerc

30-03-2007 09:19:54

I got a letter from XM a week or two ago saying they were going to merge.

As long as they don't get rid of XM 47 (Ethel) or XM 48 (Squizz) we won't have any problems.

h3x

01-04-2007 04:49:48

[bfe7178d1ab][ufe7178d1ab]FCC SIRIUS, XM DOES NOT Compete with Terrestrial Radio[/ufe7178d1ab][/bfe7178d1ab]

[quotefe7178d1ab] A recent FCC analysis of satellite competition determined that the relevant market for satellite radio consists solely of Sirius and XM. The agency relied on antitrust law and the Department of Justice merger guidelines in finding that other audio services such as terrestrial radio (including HD Radio), iPods, and Internet radio are not competitive substitutes.

Sirius and XM have tried to justify their proposed merger based on competition from iPods, HD Radio and other forms of audio entertainment. "The reality is that satellite radio competes with an awful lot of audio services -- terrestrial radio, Internet radio, with cell phones when hooked up to Bluetooth, and we compete with MP3 players," said Sirius CEO Mel Karmazin testifying before the Senate Judiciary's Subcommittee on Antitrust Competition last week.

"This FCC decision that the current duopoly of XM and Sirius do not compete with radio, iPods or any other audio sources in the satellite radio market further undermines the arguments made by XM and Sirius to obtain a government-sanctioned monopoly," said NAB President/CEO David K. Rehr. "While the FCC clearly intends to examine all issues surrounding the XM/Sirius merger, the hurdle the parties must overcome to convince the FCC to change direction is very high."

Rehr added, "This is a dramatic blow to XM/Sirius' presumption of a broader market, and still more evidence that XM and Sirius compete ferociously against each other in the market for nationwide multichannel mobile audio services, and no one else."[/quotefe7178d1ab]

h3x

04-04-2007 04:20:16

[bf56c7fea37][uf56c7fea37]Influential research firm to come out against SIRIUS-XM Merger[/uf56c7fea37][/bf56c7fea37]

[quotef56c7fea37]NEW YORK (MarketWatch) -- The influential research firm Carmel Group, whose analysis helped kill the 2003 merger of EchoStar Communications Corp. (ECHO) and DirecTV Group Inc. (DTV), will release a new report Tuesday that outlines arguments against merging satellite radio companies Sirius Satellite Radio Inc. The New York Post reported in its Tuesday editions.

Sponsored by the National Association of Broadcasters, which has already come out against the deal, the 11-page independent white paper includes a point-by-point rebuttal to the six main arguments put forth by Sirius and XM in favor of a merger.
The Post reports that the paper concludes that that approval of the deal will result "in less service, less affordability, less diversity and less choice in content and hardware."[/quotef56c7fea37]

[bf56c7fea37][uf56c7fea37]FCC Chairman Kevin Martin will be attending NAB 2007[/uf56c7fea37][/bf56c7fea37]

[quotef56c7fea37]WASHINGTON, D.C. - Federal Communications Commission Chairman Kevin Martin will speak at NAB2007 in Las Vegas. He will address the attendees at a special event on Wednesday, April 18, 2007.

"Chairman Martin has a great passion for public service and a deep understanding and appreciation for the value of local broadcasting," said NAB President and CEO David K. Rehr. "We are delighted that he will attend NAB2007 and look forward to hearing his thoughts on the future of our industry."

President Bush appointed Martin to the FCC in 2001 and elevated him to the FCC chairmanship in 2005. Before joining the FCC, Martin was a Special Assistant to the President for Economic Policy. He served on the Bush-Cheney Transition Team and was Deputy General Counsel for the Bush campaign. Prior to joining the campaign, Martin was an advisor to FCC Commissioner Harold Furchtgott-Roth. He has also served in the Office of the Independent Counsel and worked as an associate at the Washington, DC law firm of Wiley Rein & Fielding. Before joining Wiley Rein & Fielding, Martin was a judicial clerk for U.S. District Court Judge William M. Hoeveler, Miami, FL.

Martin received a B.A. from the University of North Carolina at Chapel Hill, a Masters in Public Policy from Duke University, and a J.D. from Harvard Law School. He is a member of the District of Columbia Bar and the Federal Communications Bar Association.[/quotef56c7fea37]

h3x

13-04-2007 20:04:49

[baaa1ef74c4][uaaa1ef74c4]SIRIUS to hold Q1 2007 Financial/Operating Results Conference Call for Investors[/baaa1ef74c4][/uaaa1ef74c4]

[quoteaaa1ef74c4]SIRIUS Satellite Radio (Nasdaq SIRI) today announced that it plans to release 1Q 2007 financial and operating results on May 1, 2007.

(Logo http//www.newscom.com/cgi-bin/prnh/19991118/NYTH125 )

SIRIUS also plans to hold a conference call at 800 am ET to discuss these results. Investors and the press can listen to the conference call via the company's website, http//www.sirius.com, and on its satellite radio service by tuning to SIRIUS Channel 122.

A replay of the call will be available on the company's website.[/quoteaaa1ef74c4]

Sanjiya_rocks

14-04-2007 06:23:10

Disturbing in my opinion, not just because of the monopoly but alot of ppl don't think about it as just another step towards GLOBALISM which threatens to destroy cultural diversity...

Wolfeman

14-04-2007 13:51:46

Sanjiya rocks huh?

h3x

14-04-2007 17:46:02

Forget Mangina... What about his sister?

http//sanjayassisterbounce.ytmnd.com/

http//thesuperficial.com/2007/04/sanjaya-malakar-sister.jpg[" alt=""/imgc99eaac7b0]

[img="c99eaac7b0]http//i143.photobucket.com/albums/r129/spicypants/sanjayasis.jpg[" alt=""/imgc99eaac7b0]

I love the smell of curry in the morning [img="c99eaac7b0]http//forum.freeipodguide.com/smilies_mod/upload/dae9951f400225b51bf2bb33d35abb26.gif[" alt=""/imgc99eaac7b0]

Tholek

14-04-2007 20:12:40

Butterface.

Now back on topic. ;)

h3x

21-05-2007 21:48:50

[b6aa767fae4]National Black Chamber of Commerce Supports SIRIUS/XM Merger[/b6aa767fae4]

[quote6aa767fae4]The National Black Chamber of Commerce (NBCC) voiced their support today for the merger between XM and Sirius, urging the FCC to act swiftly in its approval.

Formed in 1993, the NBCC represents 95,000 African American owned businesses and provides an advocacy that reaches all 1 million Black owned businesses.

�Satellite radio is critical to the programming needs of African Americans,� said Harry Alford, NBCC president and CEO in a letter to the FCC. �Both companies offer dozens of channels that are targeted to African American entrepreneurs, entertainers, and consumers. A combined company will improve efficiency, expanding the breadth of these offerings while offering African Americans more choices at lower prices.�

Only a few weeks ago, FCC Commissioner Michael Copps had some very harsh words to say about the current state of diversity in the media. "Our media have an obligation to reflect our country's diversity. They have an obligation to nourish our country's diversity. It's a job not getting done," Copps said.

With this in mind, the support of the NBCC could then hold some significance.[/quote6aa767fae4]

http//www.orbitcast.com/archives/national-black-chamber-of-commerce-comes-out-in-favor-of-siriusxm-merger.html

KnightTrader

22-05-2007 12:53:02

SEC is dumb. They have a choice. Let XM and Sirius merge and create a monopoly, Or Bar it and let both companies go bankrupt, resulting in the losses of THOUSANDs of jobs. Fact is both companies are losing Millions of dollars each quarter. Never has either company ever turned a profit, and they're doomed to fail without combining their suscription bases.

Monopoly isen't bad in this case. If they start to over charge, and fail to innovate, as monopolies are theoretically supposed to do, Customers have the option to Stop paying for the service. Simple as that.

The only BAD monopolies are GOVERNMENT monoploies. Like the monopoly on elctricity / Gas. Everyone in Bergan country for example HAS to purchase electricity / Gas from a company called PSE&G. If I wanted to start a business distributing electricity/Gas in my county, I would get locked up, because the government said ONLY they are allowed to sell electricity/Gas.

Monopolies like the USPS are also bad, as They are the only company allowed to deliver letters. UPS/DHL/FedEx Cannot deliver regular letters, Illegal for them to, or anyone else.

h3x

25-05-2007 22:56:33

[b9f76db70ed][u9f76db70ed]Artie Lange... Arrivederci Cocksucker![/b9f76db70ed][/u9f76db70ed]

[quote9f76db70ed]Stern-2007-05-24cf an eos edit.torrent[/quote9f76db70ed]

http//www.redskunk.org

Registration required. It's open to the public.

This has got to be one of the most tense shows to date. You could cut the tension with a knife.

[spoiler9f76db70ed]Artie Lange insults Howard on May 23rd's Wrap Up Show and gets grilled for it all day long the next day... It eventually leads to Artie announcing that he will be resigning from the show in January... But with the day-long exchange of insults and Howard breaking his friendship with Artie, it looks as though he will be leaving a lot sooner. A historic ending in the Artie Lange saga.[/spoiler9f76db70ed]

... and if 5 hours weren't enough, it includes the Wrap-up show which will discuss about the preceding show [spoiler9f76db70ed]and input on who might be sitting in the chair when Artie leaves.[/spoiler9f76db70ed]

Wolfeman

26-05-2007 01:46:57

I heard this when it happened. I was stuned!

Tholek

26-05-2007 03:36:01

Despite his shots at O&A and their fans, I had always liked Artie. He was the one guy on the show that could make me laugh. Bringing him on was the last wise move Howard had made since signing with Sirius.

There was a similar fight on O&A with Opie and Jim Norton, where I thought he'd get booted too, but they patched things up.

Shame about Artie...last movie tanked, no MadTV. What's he gonna do?

h3x

26-05-2007 03:56:47

[quoteeb20caf34f="Tholek"]Despite his shots at O&A and their fans, I had always liked Artie. He was the one guy on the show that could make me laugh. Bringing him on was the last wise move Howard had made since signing with Sirius.

There was a similar fight on O&A with Opie and Jim Norton, where I thought he'd get booted too, but they patched things up.

Shame about Artie...last movie tanked, no MadTV. What's he gonna do?[/quoteeb20caf34f]

[spoilereb20caf34f]Take 6 months off in Europe (which sounds like a publicist's answer)... He was isolated during the show and was subjected to verbal jabs by Howard, Robin, the guests & callers... $50 says he's back on heroin after this incident.[/spoilereb20caf34f]

Tholek

26-05-2007 04:14:26

(

Wolfeman

26-05-2007 13:36:47

I think he needs serious therapy. Moving away isn't going to solve anything. He looks like hell lately. This all came to a head because Howard brought in this girl that had a big crush on Artie and Artie took it as an insult when all Howard was trying to do is 'hook a brotha up' in his words...

h3x

02-06-2007 22:53:42

[bff2c296aca][uff2c296aca]New SIRIUS Commercial[/bff2c296aca][/uff2c296aca]

Its been awhile since SIRIUS advertised on TV (aside from the recent Mercury-SIRIUS promotion and guest appearances from Howard Stern and Artie Lange on the late night talk shows)... Here is one of the commercials they plan to release nationwide as part of their summer advertisement campaign

http//www.sirius.com/wo/movie/sirius_ad_52907.wmv[]http//www.sirius.com/wo/movie/sirius_ad_52907.wmv

[bff2c296aca][uff2c296aca]League of Rural Voters supports SIRIUS-XM Merger[/bff2c296aca][/uff2c296aca]

[quoteff2c296aca]MINNEAPOLIS, May 31, 2007 /PRNewswire via COMTEX/ -- The League of Rural Voters urged the Federal Communications Commission (FCC) to approve the merger between XM Radio (Nasdaq XMSR) and SIRIUS Satellite Radio (Nasdaq SIRI), noting that the combined entity would offer listeners in rural communities more programming options at lower prices than those currently available from the two companies separately. "In many rural areas throughout America, commercial radio reception can be extremely limited. Satellite radio has offered listeners in rural areas a robust alternative with hundreds of specialized channels that meet the programming needs of rural America," said Niel Ritchie, the League's Executive Director.

Consolidation of the commercial, over-the-air radio industry over the last decade has left much of rural America behind in recent years, as locally-owned stations are replaced with corporate conglomerates producing homogenized content with so-called local news and weather delivered from offices hundreds of miles away. In announcing its support of the merger, the League also highlighted rural listeners who depend on satellite radio's emergency and public safety stations. Satellite radio is often the best source of diverse music, talk, news, and sports in remote areas, as many other alternatives to terrestrial radio have yet to reach there. A successful merger of XM and SIRIUS creates even more programming options and provides a clear benefit to the many listeners living in rural America.

The League of Rural Voters was founded in 1985 as a non-profit
organization dedicated to increasing the representation of rural people in the public policy making process. The League seeks to build awareness of the economic challenges facing rural communities while advocating for federal and state policies that focus government resources on education, health care and local and regional economic development.

SOURCE League of Rural Voters[/quoteff2c296aca]

Tholek

02-06-2007 23:27:35

There is a resistance to the merger by fellow Opie & Anthony fans who feel wronged by O&As suspension. Personally, I don't see opposing the merger as something that is really in the interest of O&A. If XM will screw them over now, I don't see how they wouldn't if the merger fell through too. However, they seem to be some of the most vocal opposition right now, and have succeeded in convincing some advertisers to pull commercials.

It remains to be seen if they will continue if, and when, O&A return to the air.

h3x

03-06-2007 02:10:57

I don't think O&A will be dropped from XM after the suspension is up (that is if they keep their mouths shut about XM, the merger and the incident that got them suspended in the first place)...

I have a strong feeling that they'll be back on XM when the suspension is up.

Tholek

03-06-2007 14:17:40

So do I, and while I want them back, it's something I'm not 100% happy about. Being there now may be like being at Infinity when Stern was an ass and tried to ruin their careers. While it's up to XM what they wish to air, O&A usually, as of late, follow FCC rules. To castrate them further is untenable, and may affect the show.

Approved or denied, this merger business needs to end sooner rather than later. Maybe that's what the other fans are thinking here.

http//forum.freeipodguide.com/smilies_mod/upload/8da47a6a788bfa3cafaca999fecc915f.gif[" alt=""/imga77b05d8f9]

h3x

11-06-2007 20:49:56

Its going to end soon. The clock has officially started today...

As of today, the FCC has begun their 180-day investigation (which will ultimately decide whether the merger will go through or get shot down).

tylerc

11-06-2007 20:54:53

So when will they actually merge?

h3x

17-06-2007 04:21:55

One last post before the outcome of the merger is decided...

You have until July 9th to file a comment with the FCC on whether or not the merger should be approved.

You can find out how to voice your support (or opposition) to the merger from the following websites

http//www.siriusmerger.com
http//www.fcc.gov/cgb/ecfs/

Tholek

18-06-2007 20:39:40

[quotebacf073a87]Lawmakers to regulators Block merger of XM, Sirius

By Brooks Boliek 1 hour, 16 minutes ago

WASHINGTON (Hollywood Reporter) - More than 70 lawmakers on Monday urged antitrust authorities to block the proposed merger of the nation's two satellite radio companies, contending that the deal is anticompetitive.

In a letter to Attorney General Alberto Gonzales and
Federal Communications Commission chairman Kevin Martin, 72 members of Congress expressed their opposition to the XM-Sirius deal, saying it would harm consumers.

"On its face, we believe that sanctioning the marriage of the only competitors in the satellite radio market would create a monopoly, which would be devastating to consumers," the lawmakers said.

Chief authors of the letter are Reps. Gene Green, D-Texas, and Jim Sensenbrenner, R-Wis., a senior Republican of the
House Judiciary Committee, which oversees the Justice Department.

Several committee chairmen and prominent members also signed the letter.

Among the Democrats' signatories are Budget Committee chair John Spratt of South Carolina, Agriculture Committee chairman Collin Peterson of Minnesota, Rules Committee chairwoman Rep. Louise Slaughter of New York and presidential candidate Rep.
Dennis Kucinich of Ohio.

Among the 25 Republicans who signed the letter are former House Speaker Rep.
Dennis Hastert of Illinois, Republican whip Rep. Roy Blunt of Missouri and Tom Cole of Oklahoma, chairman of the National Republican Congressional Committee.

The lawmakers join a growing cadre of congressmen who have expressed varying degrees of concern about the deal. While the lawmakers can't block the deal on their own, their concerns threaten to create an atmosphere that would make the deal harder for antitrust authorities to approve because they often pay attention to lawmakers' concerns.

In May, House Energy and Commerce Committee vice chairman Rep. Mike Doyle, D-Pa., sent a letter expressing concern about the deal to Gonzales, Martin and FTC chairman Deborah Platt Majoras.

Sen. Herb Kohl, D-Wis., chairman of the Senate antitrust subcommittee, sent a letter to Martin and Assistant Attorney General Thomas Barnett expressing opposition.

House Judiciary Committee chairman John Conyers, D-Mich., and House antitrust task force ranking member Rep. Steve Chabot, R-Ohio, sent a letter to Martin and Gonzales asking a series of tough questions related to the merger.

Reuters/Hollywood Reporter[/quotebacf073a87]

http//news.yahoo.com/s/nm/20070619/media_nm/radio_dc;_ylt=AtEb.nXne_wpKegbTgsUVs5xFb8C

h3x

25-03-2008 03:07:02

[b466b117e4b][u466b117e4b]The Department of Justice approves SIRIUS-XM Merger, FCC ruling has yet to be decided[/u466b117e4b][/b466b117e4b]

[quote466b117e4b]WASHINGTON (AP) � The Justice Department has approved Sirius Satellite Radio's $5 billion buyout of rival XM Satellite Radio.

The merger was approved despite opposition from consumer groups and an intense lobbying campaign by the land-based radio industry.

Regulators said the merger is not likely to substantially hurt competition or consumers.[/quote466b117e4b]

http//ap.google.com/article/ALeqM5gpcaW34bTLs1hXU9zx16zSXEHrCQD8VJVPPG2

[quote466b117e4b]The United States Department of Justice today approved the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., stating that the evidence does not establish that the combination of the two would "substantially reduce competition."

[b466b117e4b]Official statement[/b466b117e4b]

"After a careful and thorough review of the proposed transaction, the Division concluded that the evidence does not demonstrate that the proposed merger of XM and Sirius is likely to substantially lessen competition, and that the transaction therefore is not likely to harm consumers. The Division reached this conclusion because the evidence did not show that the merger would enable the parties to profitably increase prices to satellite radio customers for several reasons, including a lack of competition between the parties in important segments even without the merger; the competitive alternative services available to consumers; technological change that is expected to make those alternatives increasingly attractive over time; and efficiencies likely to flow from the transaction that could benefit consumers.

"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."[/quote466b117e4b]

http//www.usdoj.gov/opa/pr/2008/March/08_at_226.html

All that is left to seal the deal is for the FCC to approve the merger. It will most likely be approved by the FCC because according to analysts "The FCC has never, to our knowledge, rejected a merger approved by the DOJ. We don't believe this one is likely to be the first."

dmorris68

25-03-2008 05:07:50

Yeah, I thought about posting this yesterday when I heard the news. I'm very surprised.

[quote35e3129274]The United States Department of Justice today approved the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., stating that the evidence does not establish that the combination of the two would "substantially reduce competition." [/quote35e3129274]

I just can't wrap my head around that statement. There IS no other competition in satellite radio. I just don't understand how they can equate free, limited market, terrestrial broadcast with a nationwide subscription satellite service and thus claim they compete. Corporate greed and stockholder demands being what they are, without competition in the satellite market, I would expect prices to rise while service and innovation decline over time.

Maybe the FCC will see things different, but honestly I thought the DOJ would have a bigger problem with it, so it's probably going to be approved. Oh well, maybe we'll get some refreshed equipment out of the deal -- I'm looking to upgrade and quite honestly haven't been impressed enough with the latest generation. I find all the features I want are scattered between different models -- no one model has what I'm looking for.

h3x

25-03-2008 06:02:22

[quote1c3f87ccee="dmorris68"]Corporate greed and stockholder demands being what they are, without competition in the satellite market, I would expect prices to rise while service and innovation decline over time.[/quote1c3f87ccee]

I don't think it would make any sense to raise prices if you are struggling to "compete" with other forms of "audio distribution". If they raise the price and start taking content away, then people will simply stop paying for the service and it will drive the company to bankruptcy (they aren't exactly in a financially stable position as it is, hence the reason for the merger).

Whether or not you consider terrestrial radio, MP3 players, internet radio, and any other form of 'audio distribution' as competition to the satellite radio industry is in the eye of the beholder. I would consider it as "a form" of competition.

[quote1c3f87ccee="dmorris68"]Oh well, maybe we'll get some refreshed equipment out of the deal -- I'm looking to upgrade and quite honestly haven't been impressed enough with the latest generation. I find all the features I want are scattered between different models -- no one model has what I'm looking for.[/quote1c3f87ccee]

What service do you have? I thought you mentioned awhile back that you had SIRIUS... or was it XM? Anyways, lets just say you have SIRIUS...

If you don't want any of the XM programming, then you will still receive SIRIUS programming without the need of getting a new receiver. You won't have to do a thing and you won't pay any more for your service.

However, if you decide to add XM programming to your service via the 'A La Carte' plan, then you would need a new receiver.

Then they have some plan where you can get 10 channels of the 'best of' the other service. That would not require a new receiver, you would be able to pick that up on your current radio. What channels will be offered on each service has yet to be decided.

Here is a list of the proposed Post-Merger pricing options

http//www.siriusmerger.com/uploads/Sirius_Channel_Lineup.pdf

Personally, I have no need to get any XM programming. I'm content with what SIRIUS has to offer.

h3x

25-03-2008 08:29:51

Apparently one Boston terrestrial radio station considers SIRIUS & XM as competition (to the point that they bleep their own afternoon radio host from mentioning the approval)

[quote57434ab7c1]Apparently Entercom is real serious about not mentioning Sirius or XM on the air, because it's being reported that an afternoon talker was bleeped when mentioning the news about the companies yesterday.

According to Radio-Info, regionally syndicated afternoon talker Howie Carr was bleeped when reading the news about the DOJ's approval (from the Drudge Report apparently).

Carr supposedly was discussing the merger news on air, saying "Justice Department approves [EDIT]. That's good." Then later Carr said to his producer "Did you cut that out? I can't report the news?"

More and more it's the corporate regulations - not the FCC mandated indecency regulations - that are crippling broadcasters from doing their job. This is a perfect example.[/quote57434ab7c1]

http//www.orbitcast.com/archives/boston-talker-gets-bleeped-talking-about-sirius-xm.html

dmorris68

25-03-2008 08:55:05

I just don't agree on what counts as "competition," but that's just me. People who are hooked on subscription programming (which is most of us who try it) will tolerate price increases to keep their service. That's why they left free commercial broadcast service in the first place -- they were willing to pay extra for premium content.

With XM and Sirius as separate competitors, if you were dissatisfied with one, you could switch to their direct competitor. Now, the only available switch is away from premium programming entirely, so many will endure price increases, at least until they can't afford it anymore. As such, to maximize profits, XMSirius is now free to increase pricing as long as they don't keep it so high that customers leave in droves. That couldn't happen as easily with them being separate competitors. Same with innovation -- with nobody in the market to "out do" them, they are going to be less inclined to spend the money on R&D to innovate.

I keep going back to the satellite TV comparison. The DirecTV/Echostar merger was nixed on the same monopoly principle, and yet in their case there liisli a direct competitor for premium content cable TV. So even if they had merged and monopolized satellite, there would still be a preimum alternative to go to (for most people, although not rural folks). In fact that relatively small rural population who cannot get cable was one of the main reasons the satellite TV merger failed, because then those people would have no competition to go to if unhappy. I see radio as the exact same concept (you just listen instead of watch) but with radio there is no 3rd party (i.e. cable) to go to. There are already fewer options from the start. Those same rural people who can't get cable or decent broadcast TV also likely can't get broadcast radio other than AM, so why doesn't the same regulatory argument apply for radio that applied for TV?

As far my service, I have XM and I'm quite happy with it -- I really have no desire for Sirius programming at this point. Of course that could change if I experience something I like better than XM. My complaint was about the hardware itself. I have in mind an "ideal" receiver that has features I see split between several different current XM models. Features such as a nice color display, cross-channel buffering with lots of capacity, portability, reliability, reception, etc. Some models that have limostli of what I want are getting poor reviews for various reasons. The best reviewed models are lacking in the features I want. It's not like I want features that don't exist, they just don't all exist in one unit. I'm at least hoping that if the merger goes through, they'll merge technologies and hopefully get me closer to my ideal receiver.

h3x

25-03-2008 09:53:07

I forgot to mention that they will continue to operate as two seperate brands. Its just that both brands are now owned by SIRIUS. I personally don't see any drastic changes any time soon.

Its up to the FCC at this point on whether they will approve the merger (which is most likely) and if there will be certain conditions for its approval.

TravMan162

25-03-2008 12:46:50

[quote1f7b2e94c9="h3x"]I forgot to mention that they will continue to operate as two seperate brands. Its just that both brands are now owned by SIRIUS. I personally don't see any drastic changes any time soon.

Its up to the FCC at this point on whether they will approve the merger (which is most likely) and if there will be certain conditions for its approval.[/quote1f7b2e94c9]

this is going to be dragged on longer than mick jagger's career.

h3x

25-03-2008 21:21:42

[b6affe6b98d][u6affe6b98d]Orbitcast SIRIUS/XM Merger Will my radio still work? (and how much will it cost?)[/u6affe6b98d][/b6affe6b98d]

[quote6affe6b98d]I am questioned constantly (nearly everyday even) from satellite radio subscribers concerned about their existing radios. Since the DOJ approved the merger, these questions have bombarded my inbox even more [i6affe6b98d]Will my Inno work after the merger? Do I need to buy a new Stiletto after Sirius and XM merge? I just bought a new car, will my new satellite radio still work?[/i6affe6b98d] You get the idea.

[b6affe6b98d]Here's the facts[/b6affe6b98d]

From day one Sirius and XM have promised that [u6affe6b98d]no existing radio will be made obsolete[/u6affe6b98d] by the merger. (Afterall, that would be silly from a business sense wouldn't it?) The reality is that you will be able to get the "best of both" Sirius and XM on any of today's satellite radio devices with one monthly subscription.

[b6affe6b98d]li If you're an XM subscriber[/b6affe6b98d]

You'll continue to receive your existing XM service, and gain the ability to receive certain Sirius programming.

[b6affe6b98d]li If you're a Sirius subscriber[/b6affe6b98d]

Sirius customers would continue to receive their existing Sirius service, and be able to obtain certain XM programming.

There are eight different packages that the companies have announced they will offer following the merger. Prices for each will range from $6.99/month to $16.99/month. If you don't want anything to change, it won't - the "Everything" packages will cost the same as what you currently pay.

[i6affe6b98d]Can I get MLB on my Sirius after the merger? Will I can get NFL on my XM?[/i6affe6b98d]

The real answer? We don't know for sure. If you read through those post-merger channel lineups, you'll notice that there are "top selections" made available for both sides. Obviously, like anything else in this world, contracts will need to be negotiated to iron out all the details. We will find all that out after the merger is finalized.

[b6affe6b98d]First-ever A La Carte packages[/b6affe6b98d]

Of those eight packages, two will be "a la carte" packages. These will be the [b6affe6b98d]first ever[/b6affe6b98d] a la carte options in subscription media. Ever. You will have the choice of either a 50 channel package (starting at $6.99) or a 100 channel package ($14.99), and then choose from a selection of channels to your liking. "Premium" content will cost more, but this will be the first time that you can pick and choose what channels you want on your radio. (Hint if you mostly want the commercial-free music, with a smattering of news/talk, then the a la carte packages will be perfect for you.)

There's one caveat A la carte programming will [i6affe6b98d]only[/i6affe6b98d] be available for subscribers using [b6affe6b98d]new radios[/b6affe6b98d].

These new a la carte capable radios are currently in development and will be brought to market following final approval of the merger. Sirius and XM originally estimated it would take one-year to bring them to market, but since the merger process has dragged on much longer than anyone expected, it's hard to know the exact timeline now.

[i6affe6b98d]If you have any questions, as always, feel free to email= me at email=ryans@orbitcast.comryans@orbitcast.com me at email=ryans@orbitcast.comryans@orbitcast.com/email and I'll help out as best as I can.[/i6affe6b98d][/quote6affe6b98d]

[b6affe6b98d][u6affe6b98d]Rep. Rick Boucher "pleased" with DOJ; urges FCC to complete review[/u6affe6b98d][/b6affe6b98d]

[quote6affe6b98d]Congressman Rick Boucher (D-VA) today issued a statement regarding the Justice Department's approval of the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

"I am pleased that the Department of Justice has concluded its investigation and determined that the XM-Sirius merger does not pose significant competition concerns," stated Boucher. "The Department appropriately defined the relevant market for competitive purposes as the entire marketplace for audio entertainment, including terrestrial radio, Internet radio, and consumer devices, such as iPods. In that broader market, the merged company will have limited ability to raise consumer prices."

"While creating no consumer disadvantage in terms of pricing of services, the merger will lead to significant other consumer benefits," Boucher added, citing the synergies that would allow for a la carte packages to be available to consumers.

"This unprecedented approach will provide subscribers with more choices and lower prices and will pave the way for a form of content acquisition based on the individual programming preferences of listeners."

Boucher concluded "Given the vibrancy of competition in the audio entertainment market and the substantial consumer benefits that will result, the merger is clearly in the public interest. I urge the FCC to complete its review of the XM and Sirius transaction expeditiously and allow the two companies to proceed with their merger plans."

Rick Boucher has a history of promoting technology and being active on Internet-related legislation. Boucher's proposals to promote competition in the cable and local telephone industries contributed to the enactment of the Telecommunications Act of 1996.

Boucher also originated the House Internet Caucus (and is currently its co-chairman) and created the Digital Media Consumer's Rights Act (DMCRA) legislation.[/quote6affe6b98d]

Last but not least, some news from Satellite Radio's "main competitor", terrestrial (AM/FM) radio

[b6affe6b98d][u6affe6b98d]WSJ Clear Channel deal is near collapse[/u6affe6b98d][/b6affe6b98d]

[quote6affe6b98d]Ouch, that's got to hurt. Just as Sirius and XM edge closer to finalizing their own merger, the Wall Street Journal is now reporting that Clear Channel Communications Inc. is having trouble closing their own.

Indeed, they're saying it's nearing a complete "collapse."

According to WSJ sources, the private equity firms behind the deal (Thomas H. Lee and Bain Capital Partners LLC) and the banks financing it have failed to resolve their differences over the terms of the credit agreement. Those banks are Citigroup, Morgan Stanley, Deutsche Bank, Credit Suisse, RBS and Wachovia.

"The sponsors do not want to do this deal," said one person involved, referring to the private equity firms. "No one wants to do this deal except for the seller."[/quote6affe6b98d]

Fun Fact Clear Channel owns over 1,200 radio stations across the U.S. ([b6affe6b98d]Every[/b6affe6b98d] Alaska radio station (with exception to public radio) is owned by the 800 pound gorilla known as Clear Channel. Then there is the local television networks (NBC, ABC, CBS, FOX)... All owned by one company as well. Hmm...)

[b6affe6b98d][u6affe6b98d]NAB is "astonished" by DOJ approval of Sirius/XM[/u6affe6b98d][/b6affe6b98d]

[quote6affe6b98d]The National Association of Broadcasters is disgusted. They're hurt. They're angry! And quite possibly even... astonished!

"We are astonished that the Justice Department would propose granting a monopoly to two companies that systematically broke FCC rules for more than a decade. To hinge approval of this monopoly on XM and Sirius's refusal to deliver on a promise of interoperable radios is nothing short of breathtaking."

That's the statement issued by the NAB following the DOJ's approval of the Sirius-XM merger.
What's even more astonishing is the NAB's reasoning for expressing such dismay breaking FCC rules and under delivering on promises. C'mon, is that the best you've got Dennis? You've had 400 days to prepare for this moment... and you give us that?

Wait... have any radio stations broken any FCC rules? Like maybe... indecency rules? Using your logic, all those nasty rule-breakers shouldn't be allowed to merge either. I'm sure your members would love to hear that bit of knowledge.

The NAB should stick to calling bloggers "nattering" instead, it's far more effective.[/quote6affe6b98d]

tjwor

25-03-2008 23:03:53

so... what is my siri stock gonna do on this? I hope it goes up a bunch!

h3x

27-03-2008 22:07:47

[b3d5ab0c642][u3d5ab0c642]State Attorneys General urge FCC for merger restrictions[/u3d5ab0c642][/b3d5ab0c642]

[quote3d5ab0c642]A gaggle of state Attorneys General today urged the FCC to impose restrictions on the merger of Sirius Satellite Radio, Inc. and XM Satellite Radio Holdings Inc.

The AGs - coming from 11 states that include Connecticut, Ohio, Missouri, and Iowa - told the Commission that they were "disappointed" by DOJ's decision to let the deal proceed without conditions.

"The combination of these companies will result in a single corporation controlling access to all nationally available satellite radio," the attorneys general said.

And what do they want?

The states are saying that the FCC should consider requiring Sirius and XM to make interoperable radios available to customers (uhm, ok), offer different packages of channels on an a la carte basis (uh huh), and [b3d5ab0c642]divest some radio spectrum that would allow another competitor into the business (it depends, how much?).[/b3d5ab0c642]

"Our offices stand ready to share with you our thoughts on the potential value of various remedial conditions available, such as mandatory publicly available interoperable receivers, a la carte pricing, and divestiture of spectrum."

"I don't think there was ever a question of concessions" Mel Karmazin, during the many hearings on Capitol Hill, clearly stated the companies' willingness to provide concessions so that regulators would deem the merger in the public interest. I'm not exactly sure where these Attorneys General have been, but much of what they're asking for has already been baked into the merger. But that's politics for you...[/quote3d5ab0c642]

[b3d5ab0c642][u3d5ab0c642]RIAA weighs in on DOJ approval of Sirius-XM[/u3d5ab0c642][/b3d5ab0c642]

http//www.orbitcast.com/archives/royalties.jpg[" alt=""/img3d5ab0c642]

[quote3d5ab0c642]Looks like everyone needs to weigh in on the Department of Justice approving the Sirius-XM merger. Next up to the plate The RIAA.

Mitch Bainwol, Chairman & CEO of the fan-favorite organization, decided to spin the situation to include the performance royalty argument with terrestrial radio...

"The merger's approval serves as a powerful validation that competitors should play by the same set of rules. On the heels of this decision, the logic for a performance right for terrestrial radio has never been clearer. Terrestrial radio - unlike satellite, Internet and cable radio - continues to reap special interest subsidies in the form of free government spectrum and an outdated exemption from compensating artists and record companies. It's time for that to change and for Congress to provide an economic marketplace where there is parity amongst all delivery platforms."

And while I disagree my blogging colleague Mark Ramsey on the whole issue of performance royalties for all forms of radio, I do agree with his feelings that these two issues are completely unrelated.[/quote3d5ab0c642]

h3x

30-03-2008 22:11:01

Here are documents sent from SIRIUS to FCC Chairman Kevin Martin a few days ago... It is the proposed post-merger channel lineup for both brands.

Its more detailed and lists all the channels that will be available on each of the 12 packages (6 for SIRIUS, 6 for XM).

http//fjallfoss.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6519869225

h3x

24-07-2008 23:04:32

[b00ae5b15b8][u00ae5b15b8]DONE DEAL Sirius-XM merger approved by FCC[/u00ae5b15b8][/b00ae5b15b8]

"The day is finally here. The Federal Communications Commission reached an agreement to conditionally approve the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., according to various reports.

The three Republicans on the five-member Commission have agreed in principle to vote in favor of letting the deal proceed as long as the companies agree to conditions to protect consumers and settle the FCC enforcement matters, Reuters reports.

"I think it's fair to say an agreement in principle has been reached," FCC Chairman Kevin Martin told the Wall Street Journal earlier today.

Martin explained to WSJ that XM received a higher fine because it kept its terrestrial repeaters in operation after being informed by the FCC that they were in violation. Sirius received a smaller fine because it had shut down its towers while waiting for FCC approval.

"That's a significant violation under our rules," said Martin. "Hopefully this is the last issue for us to move forward."

"I'm optimistic and hopeful that we will be able to move forward very quickly," Martin told Reuters.

Tate is expected to vote on the deal as soon as today. The FCC isn't expected to formally release its decision for a few days, as staff attorneys draft the final paperwork for review by the five commissioners."

http//www.orbitcast.com/archives/its-over-sirius-xm-merger-approved-by-fcc.html

h3x

25-07-2008 10:35:34

A spokesman for the FCC has confirmed that there is an agreement in principle to approve the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

But the exact terms for FCC Commissioner Deborah Taylor Tate's approval of the deal were still unknown.

According to a source familiar with the negotiations, Tate asked for various other conditions on top of the $20 million fine

[be8f0ebc786]li A three-year price freeze, but one that still allows the companies to pass through programming costs

li A la carte and family-friendly programming offerings

li Commitment to interoperable and open receivers

li The 8% set-aside (24 channels) for noncommercial and commercial independent programmers.[/be8f0ebc786]

That hardly seems like much of a difference from the companies' proposal, except for two changes, according to Broadcasting & Cable

[be8f0ebc786]li At Tate's urging, the deadline for making the receiver specs available for outside suppliers (i.e., Open Access) has been moved up to "immediately"

li Interoperable radios will be available within nine months rather than a year.[/be8f0ebc786]

(XM and Sirius are said to have agreed with moving up the dates).

dmorris68

25-07-2008 11:09:20

So I guess DOJ/SEC will rubberstamp this if the FCC approves? I thought they would be the final say since we're talking about public corporations?

I just bought an XpressRC a couple months ago and love it, it's far better than my old SkyFi2, so it looks like it'll be awhile before I buy a hybrid radio. Oh well, I'm pretty happy with XM programming anyway.

h3x

25-07-2008 21:14:25

[quote3083957ab8="dmorris68"]So I guess DOJ/SEC will rubberstamp this if the FCC approves? I thought they would be the final say since we're talking about public corporations?

I just bought an XpressRC a couple months ago and love it, it's far better than my old SkyFi2, so it looks like it'll be awhile before I buy a hybrid radio. Oh well, I'm pretty happy with XM programming anyway.[/quote3083957ab8]

They already ruled on the merger and they said it could go ahead without conditions, but the FCC is the final say in the merger (since both satellite companies are using spectrum licenced by the FCC). It took the FCC 4 months after the DOJ ruling to come to its decision.

In fact, if you look 11 posts down from the top of this page, I covered the DOJ's ruling already and how they came to their conclusion (you even commented on it).

dmorris68

25-07-2008 21:16:24

You expect me to go back and read something posted more than 24 hours ago? Sheesh...

P

h3x

25-07-2008 21:23:15

[quoteefd48447e8="dmorris68"]You expect me to go back and read something posted more than 24 hours ago? Sheesh...

P[/quoteefd48447e8]

Well, you did say in your post that you were already aware of the DOJ's decision. ;)

h3x

25-07-2008 21:29:21

[bd6447e7fb5][ud6447e7fb5]Wait, what's the holdup? Kevin Martin is, apparently[/ud6447e7fb5][/bd6447e7fb5]

"The merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. has yet to be officially consumated, apparently because of a hold-up in a single vote on the consent decree.

So what's the hold up? FCC Chairman Kevin Martin is, according to reports.

A Broadcasting & Cable source said that Commissioner Tate wasn't planning to vote to approve the merger until the FCC enforcement action was taken. But Tate has already cast her vote for the decree along with Commissioner Robert McDowell.

Both of the commission Democrats, Copps and Adelstein, have not vote for the enforcement action yet either, according to a source. But they're already on record opposing the merger, so they are unlikely to do so anyway.

So that leaves Martin, who's still the missing vote.

All he needs to do is cast his vote to issue the consent decree, and the historically long merger review will finally be wrapped up. It's unclear what the hold-up is, and no one was available in the chairman's office to respond to B&C's inquires.

And so, into the weekend we go..."

h3x

26-07-2008 14:54:05

[b2f59339eaf][u2f59339eaf]IT'S OFFICIAL FCC approves Sirius-XM with 3-2 vote[/u2f59339eaf][/b2f59339eaf]

"Let's do this again, this time with gusto The Federal Communications Commission has officially and formally approved the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

FCC Chairman Kevin Martin confirmed the final vote Friday night.

"I think it's going to be, in the end, a good thing for consumers and be in the public interest," Martin told The Associated Press.

FCC Chairman Kevin Martin said this in a statement
"The merger is in the public interest and will provide consumers with greater flexibility and choices. Consumers will enjoy a variety of programming at reduced prices and more diversified programming choices. It will also spur innovation and advance the development and use of interoperable radios, bringing more flexible programming options to all subscribers."

"I am pleased that before acting on this merger, the Commission first finalized our enforcement proceeding against two companies that have flagrantly violated FCC rules and regulations," said Commissioner Tate in a statement.

Commissioner Adelstein couldn't help but to throw in a few jabs about the process of course.

"They kept each other on their toes," Democratic commissioner Jonathan Adelstein said of the two companies. "I hope they keep their edge and don't become a fat and happy monopoly."

The conditions haven't changed since we last presumed the final closure of the deal, it was simply a case of finalizing the process".

... and so ends the historically long merger. Merger approved.

h3x

31-07-2008 00:41:27

This will be the last post

[bce8c2dcba7][uce8c2dcba7]Sirius and XM complete merger; New company name chosen[/uce8c2dcba7][/bce8c2dcba7]

http/" alt=""/img112.imageshack.us/img="112/8376/60486462ri8.png[" alt=""/imgce8c2dcba7]

The merger between Sirius and XM is no longer �proposed�. It is reality. As anticipated, Sirius and XM consummated their deal prior to the market opening today, and the company has a new name� Sirius XM Radio Inc.

Among the announcements this morning were

- Combined Company Has Over 18.5 Million Subscribers, Annualized Second Quarter Revenue Exceeding $2.4 Billion

- Company to Offer Consumers Best of Both Services, While Maximizing Significant Efficiencies

- SIRIUS XM Reiterates Financial Guidance; Expects 2009 Synergies of $400 million and 2009 Adjusted EBITDA of over $300 Million

SIRIUS Satellite Radio (Nasdaq SIRI - News) and XM Satellite Radio today announced that they have completed their merger, resulting in the nation�s premier radio company. The new company plans to change its corporate name to SIRIUS XM Radio Inc. The combined company�s stock will continue to be traded on the Nasdaq Global Select Market under the symbol �SIRI.�

SIRIUS XM Radio begins day one with over 18.5 million subscribers, making it the second-largest radio company, based upon revenue, in the country; and, based upon subscribers, the second largest subscription media business in the U.S. With under 10% penetration of the home and car market, the opportunity for continued growth is significant.

�I am delighted to announce the completion of this exciting merger between SIRIUS and XM,� said Mel Karmazin, CEO of SIRIUS XM Radio. �We have worked diligently to close this transaction and we look forward to integrating our best-in-class management teams and operations so we can begin delivering on our promise of more choices and lower prices for subscribers.�

�Every one of our constituencies is a winner. Combined, SIRIUS XM Radio will deliver superior value to our shareholders. By offering more compelling packages and the best content in audio entertainment, we are well positioned for increased subscriber growth. Our laser focus on subscribers will continue and listeners can be assured that there will be no disruption in service. We also believe that the completion of the merger will eliminate any confusion that has been lingering in the marketplace,� added Karmazin.

XM shareholders will receive 4.6 shares of SIRIUS common stock for each share of XM.

[uce8c2dcba7]Competitive New Options for Consumers[/uce8c2dcba7]

SIRIUS XM Radio broadcasts more than 300 channels of programming, including exclusive radio offerings from Howard Stern, Oprah, Opie & Anthony and Martha Stewart, among others. SIRIUS XM Radio will offer these expanded options to consumers through arrangements with the world�s leading automakers and its relationships with nationwide retailers.

As a result of the merger, SIRIUS XM Radio will also be able to offer consumers new packages in audio entertainment, including the first-ever a la carte programming option in subscription media. In addition to two a la carte options, the new packages will include �Best of Both,� giving subscribers the option to access certain programming from the other network; discounted Family Friendly packages; and tailored packages including �Mostly Music� and �News, Talk and Sports.� The first of the new packages will be available in the early Fall.

�One of the most exciting benefits of this transaction is the ability to offer subscribers the option of expanding their subscriptions to include the Best of Both services. Given the respective popularity of exclusive programming on both SIRIUS and XM, we expect many subscribers will upgrade their current subscription,� said Karmazin.

�The upside potential for both consumers and shareholders is huge. Consumers have the ease of adding premier programming without purchasing a new device. For shareholders, this kind of organic growth is a key part of the company�s future and the success we expect to see,� said Karmazin.

As promised when the merger was first announced, existing radios will continue to work and every subscriber has the option of maintaining their current service package.

[uce8c2dcba7]Benefits for Shareholders Begin Immediately, Integration Already Under Way[/uce8c2dcba7]

SIRIUS XM Radio expects to begin realizing the synergies expected from this transaction immediately.

�In addition to realizing significant potential revenue growth, the management team will move quickly to capitalize on the synergies that many analysts have predicted for this combination. We expect to begin achieving those synergies without sacrificing any of the world-class programming and marketing we are known for,� said Karmazin.

The company today also reiterated guidance for the combined SIRIUS XM Radio. Based upon a preliminary analysis, the combined company expects to realize total synergies, net of the costs to achieve such synergies, of approximately $400 million in 2009; to post adjusted EBITDA exceeding $300 million in 2009; and to achieve positive free cash flow, before satellite capital expenditures, for the full year 2009. The company also expects that both synergies and adjusted EBITDA will continue growing beyond 2009.

�We have all the tools necessary to begin executing as a combined company with high aspirations for subscriber growth and greater financial performance in part from the significant synergies that we begin realizing literally today � on Day One. We are moving quickly to integrate the operations,� said Karmazin.

The corporate headquarters will be located in New York, NY and XM Satellite Radio, the company�s wholly-owned subsidiary, will remain headquartered in Washington, DC.

Effective after the close of the market yesterday, trading in XMSR common stock on the Nasdaq Global Select Market ceased.

[bce8c2dcba7]EDIT I know I said this would be the last post, and it still is. But I have included today's interviews from Howard Stern, Opie & Anthony, and CNBC. There... I'm done this time, I swear.[/bce8c2dcba7]

[bce8c2dcba7][uce8c2dcba7]Howard Stern interviews Mel Karmazin (SIRIUS)[/uce8c2dcba7][/bce8c2dcba7]

[img="ce8c2dcba7]http//www.orbitcast.com/archives/stern-karmazin.jpg[" alt=""/imgce8c2dcba7]

[size=16ce8c2dcba7][bce8c2dcba7][url==http//torrents.thepiratebay.org/4319692/HOWARD_STERN_SHOW_7-29-2008_And_WRAP_UP_Show_128K_MP3_CF.4319692.TPB.torrent]Link (Complete Show)[=http//torrents.thepiratebay.org/4319692/HOWARD_STERN_SHOW_7-29-2008_And_WRAP_UP_Show_128K_MP3_CF.4319692.TPB.torrent]Link (Complete Show)[/url][/bce8c2dcba7][/sizece8c2dcba7]

[bce8c2dcba7][uce8c2dcba7]Opie & Anthony interviews Mel Karmazin (XM)[/uce8c2dcba7][/bce8c2dcba7]

[img="ce8c2dcba7]http//www.orbitcast.com/archives/opie-anthony-karmazin-thumb-478x358.jpg[" alt=""/imgce8c2dcba7]

[size=16ce8c2dcba7][bce8c2dcba7][url==http//www.foundrymusic.com/media/displaymedia.cfm/id/18590/page/show_video_number_18590.html]Link[=http//www.foundrymusic.com/media/displaymedia.cfm/id/18590/page/show_video_number_18590.html]Link[/url][/bce8c2dcba7][/sizece8c2dcba7]

[bce8c2dcba7][uce8c2dcba7]Mel Karmazin on CNBC[/uce8c2dcba7][/bce8c2dcba7]

[img="ce8c2dcba7]http//www.orbitcast.com/archives/mel-karmazin-cnbc.jpg[" alt=""/imgce8c2dcba7]

[size=16ce8c2dcba7][bce8c2dcba7][url==http//www.cnbc.com/id/15840232?video=808001565]Link[=http//www.cnbc.com/id/15840232?video=808001565]Link[/url][/bce8c2dcba7][/sizece8c2dcba7]