With XM and Sirius getting ready to merge, is this really good for the consumer? You really have to wonder because if the merger does get FCC approval this will leave no competition for satellite radio service.
Link to source: http://news.yahoo.com/s/usatoday/20070223/cm_usatoday/siriusandxmtogethermakessenseforlisteners
It seems everyone is really excited over the merger between XM and Sirius radio. Considering these are the only two satellite radio companies, is this merger in the best interest of the consumer. You really have to wonder because if the merger does get FCC approval this will leave no competition for satellite radio service.
Satellite listeners would end up paying more than the $12.95 a month they currently pay, as well they might expect if they get more content. But the merged company might offer à la carte pricing options and would face natural constraints. The more it charged, the more listeners would opt for free broadcast radio, MP-3 devices or new car-based Internet options being developed.--quote from USA TODAY article
We all know how bad no competition is--just think cable TV. Yes, there are many different cable companies, but how many cable companies serve your area? The most likely answer to this question is 1. How is that working for you? I mean you do have a choice--no cable or satellite TV. No cable or satellite TV is not an option today because all the 'rabbit' ears give you are local channels that are usually fuzzy unless you are within a 10 mile radius of the TV towers. Satellite TV is ok, but there is a tendency of the satellite reception going out if the weather is severe enough. Therefore, your best TV option is cable.
Now that the only two satellite radio is merging, where is the competition going to come from to keep prices low and to increase the quality of satellite radio? So before you start getting all excited about this merger, stop and think what this merger may really mean to satellite radio service.
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