And what about the short term?

While we're all looking at the year ahead and the hurdles ahead of us, what about the immediate business at hand? You know, that whole "selling radios and adding subscribers" thing.
"I worry about stagnation," said Janco Partners analyst April Horace [via Washington Post]. "I worry that both companies will be more focused on regulatory issues than they will be on the consumer. My concern is that we are going to see less activity, less innovation."
And this might be the case as the boys in Florida shift their focus from a single receiver to a compact dual-receiver. For all intents and purposes, the deal is done, and now the majority of the folks working for both Sirius and XM (minus the lawyers and regulatory geeks) are concentrating on the transition process. That takes a lot of resources, and meaning there's less for working on business at hand.
So what becomes in the interim? This is a massively publicized merger - will the customer be more likely, or less likely, to choose to subscribe now?


Comments
Less likely. The consumer knows that two incompatible services are merging, and that there are no radios on the market currently that will be applicable for the new service. The consumer doesn't want to buy an Inno or Stiletto that might be obsolete by early next year.
Posted by: Jim | February 20, 2007 8:16 AM
All these merger stories.
Having fun yet, Ryan?
Posted by: Anonymous Coward | February 20, 2007 8:19 AM
Less likely...if it was confusing for the casual listener then this will keep them away for the short term. Everyone will be waitingo for the new dual recievers and how they will look (myself included).
For better or worse...this will be a painful growing process in the near future but who know what possible good might come out of it (hey I'm trying to be positive).
Posted by: prozac ? | February 20, 2007 8:29 AM
You're right. It will be painful and growing! So willthe bills that you pay to keep satellite radio. This deal is completely bogus. It will not only stifle innovation, but also jack up prices and lessen selection. This is a lose, lose situation for consumer. Yeah, the CEOs and shareholders will be laughing all the way to the bank, but what about us? What are we to do? Just sit around and wait while they try to win over an already reluctant FCC? This will not attract customers, but will send them running for the hills. Who wants to start a service when the companies involved are in major legal battles for streamlining an industry? Personally, I enjoy that I have freedome of choice between the two. Competition is good for everyone involved.
Posted by: SatRad Chick | February 20, 2007 9:37 AM
The satellites can send to both receivers, they just don't, and the receivers can receive from both satellites, again, they just don't. I would hope that by releasing (tested) firmware upgrades, that the old receivers can be compatible with the new company.
Posted by: OneDomino ? | February 20, 2007 9:59 AM
Less likely. I seriously doubt a firmware upgrade will allow a current XM radio to receive a Sirius transmission. I think the SatRad subscriptions will level off over the next couple of months, and dwindle until this thing settles up. Overall it will be great for the industry, but for now, folks will run.
Posted by: Remo | February 20, 2007 10:09 AM
I've got Sirius but I was just about to add XM (for baseball and tony kornheiser) and now I don't know what to do. I want baseball for this season, but the idea of buying another set-up that will be obsolete in a year makes me leery (hello? I've bought 3 different Sirius sets all incompatible with the other). Yet there's a good chance the merger wont' go through (even Mel K said 50-50). So I'm totally on the fence.
Posted by: andy | February 20, 2007 11:57 AM
Speaking forward, when the deal is completely done, I plan on adding Howard 100 and Howard 101 to my new "Insert name here" Satellite Radio account.
Posted by: Brian ? | February 20, 2007 12:28 PM