Consumer advocacy groups today urged the Federal Communications Commission to reject the proposed merger of satellite radio providers XM and Sirius, saying the deal would eliminate competition and negatively impact consumers.
The groups - which include the Consumer Federation of America, Consumers Union and Free Press - filed a report Monday stating that the estimated $5 billion deal would reduce the number of channels and formats available and result in little cost savings.
"The proposed XM-Sirius merger is not in the interest of American consumers," said Dr. Mark Cooper, director of research for the Consumer Federation of America and lead author of the report.
"Leaving one company to monopolize the satellite radio industry would result in higher prices and fewer choices -- with no foreseeable public benefit."
The report - which claims to not "restate the case against the merger" but rather "focus on new data introduced into the record" - says the Sirius-XM merger would have negative side effects for both consumers and for the satellite radio industry. They feel that the deal would reduce the number of channels and formats available, result in fewer cost-saving incentives, and cause a dramatic drop in spending on talent and retail.
The groups say the companies have not made a sufficient case that the FCC should end its explicit prohibition on mergers between satellite licensees.
[Read the FCC Filing (PDF) via The Hollywood Reporter]
More of the same CROCK! These people continue to throw common sense out the window. I bet 95% of subscribers want the merger to happen. I even know people who are waiting for the merger to happen before they buy a sat radio. Why? They want more value!!!!!!
Politics suck!
the biased Georgetown partners come out again claiming to speak for me...I'd like to have the authority to tell them to SHUT UP!
Thank God for Dr. Mark Cooper. I would not be able to live without his help and him making decisions for me. Lord knows I would never be able to cancel my subscriptions on my own. I wonder if Dr. Mark will help me chew my food too.
"reduce the number of formats and channels available????" Hows that when combined with additional sats in space, bandwidth etc--
What it would do is make MORE channels/formats available as one channel from both would be Fox news, lets say, and then the extra space that was used by the other could be used for another channel---such as programming for specific groups (spanish, etc)
Redundantcy could be eliminated, driving down costs as well as having more bargaining power when it comes to programming costs, commercial rates as you just doubled the potential listener by combining services
Ya, they make sense.... lol
They also mentioned "new Evidence" to support claims that free radio doesnt closely comptete with the sats---Is this "new evidence" the announcements only over the past few weeks of new companies/products coming out to compete against the sats, such as slacker, cell phones etc.
come on now.............
The Squeaky Wheel wrote on another post on 11/23: “...but I also do not think anyone should lose sight that mergers NEVER benefit the consumer, only the stockholder will benefit. (And that is the ONLY reason they want to 'merge')... that's all.” I agree. It's all smoke 'n mirrors now and after some time XM/Sirius will be great for the stockholders and worse for the consumers. Just look at CBS/Infinity or Clear Channel as examples.
Pat, thats the problem. No one has asked the current subscriber base for either company if they would support the merger. When you think about it, no company asks its consumers if they would support a merger, good or bad. They assume it would be good for them and move as if this is true. I wish someone would conduct a survey/poll/something to see if people want this or any merger to pass.
Hello? big red truck!
We are less that 10 days away from a decision being made and outcomes from the woodwork
these so-called consumer groups- They have no clue what they are talking about- Wonder if the NAB are hard at work greasing palms again.
Just wondering: when was the last time that two companies merged and sewed up an entire market segment, and the result was more choice and lower prices? In this universe, I mean.
Are the membership list available from these consumer groups available pubically or through FOIA. How can they claim to represent anyone without their permission?
They certainly don't have my permission!!~!!
I am THE Consumer! How can they represent me without asking me????????
I am a multi-subscriber who wants more choices and from MY experience with these products I feel the merger is best for ME.
I am the consumer. How is it possible that these people can say they represent me. Since they don't represent me what 'consumers' do they represent. Do these non-subscriber consumers matter to anyone in this transaction???
WHO MATTERS IS THE CONSUMERS OF SATELLITE RADIO.
This attempt is an obvious attempt to look as if they represent all of us. THEY DON'T!
It's like when Jessie Jackson speaks they think he represents all blacks. HE DOESN'T!
These are paid extortionists faking legitimacy.
I MATTER, and if I don't like the merger I have sooooo many options for commercial free music that they HAVE to get it right. I know it, You know it, They Know it!!
Satellite Radio needs us more than we need it - They better please us or the business dies.
I am a happy Satellite multi-subscriber and I APPROVE THIS MERGER!!
Don't assume anyone speaks for me.
Go XM-SIRIUS!! We need you to survive this turnoil for a better future for all consumers!
would reduce the number of channels and formats available
How stupid it is bandwith that Sirius wants.
How about a list of names and they get put on the Sirius do not sell to list.
This is good, as a consumer who does NOT want the merger to happen, I am happy to hear things like this..
No merger!!! Sirius get away from my XM!!!!!!!!!!!!
well the time will soon be at hand, so we can stop the year long back and forth about the odds of this merger. This has got to be the most talked about merger in history..for what? These companies arent even part of the s&p 500 and probably will never be.
I agree - as a non-profit organization that relies on donations (subscriptions) for their funding the consumers union needs to refrain from delivering OPINIONS - especially when they don't know if it represents the opinion of its supporters. Here is a copy of the email I just sent to Consumers Union.
Dear sirs,
Please be advised as a paying subscriber (02044XXXX) and donator to your institution I do not appreciate you using my funds to express your opinion against the proposed XM / Sirius merger to the FCC. As an XM subscriber since the very beginning I have hoped for this merger since it was announced. I prefer the talk stations on XM and the music stations on Sirius. I do not believe you polled your paying supporters as to their wishes and therefore have no right to make that decision on your own. I understand we support you in order to help us, the consumer, by your reviews that for the most part are based on a somewhat scientific basis. However, coming out with an opinion that I would theorize 80% of your supporters probably disagree with is not acceptable.
You are supposed to inform the people that support your organization – not pretend to be a voice for them.
I agree - as a non-profit organization that relies on donations (subscriptions) for their funding the consumers union needs to refrain from delivering OPINIONS - especially when they don't know if it represents the opinion of its supporters. Here is a copy of the email I just sent to Consumers Union.
Dear sirs,
Please be advised as a paying subscriber (02044XXXX) and donator to your institution I do not appreciate you using my funds to express your opinion against the proposed XM / Sirius merger to the FCC. As an XM subscriber since the very beginning I have hoped for this merger since it was announced. I prefer the talk stations on XM and the music stations on Sirius. I do not believe you polled your paying supporters as to their wishes and therefore have no right to make that decision on your own. I understand we support you in order to help us, the consumer, by your reviews that for the most part are based on a somewhat scientific basis. However, coming out with an opinion that I would theorize 80% of your supporters probably disagree with is not acceptable.
You are supposed to inform the people that support your organization – not pretend to be a voice for them.
How dare these supposed consumer advocate groups pretend to talk for me. As a prospective satellite radio subscriber if I want to listen to major league baseball and national football league games I would have to subscribe to both XM and Sirius. If I wanted to listen to Opie and Anthony and Howard Stern I would have to subscribe to both services. If I wanted to listen to Martha and Oprah & Friends I would have to subscribe to both services. Since I can't afford both services I now have to sacrifice listening to one or the other. With the merger I won't be forced into having to decide which to sacrifice, I can have both from one source, one radio. The way I see it, as a consumer that's to my benefit. Who are these consumer groups speaking for? They certainly aren't speaking for me.
Thank God for consumer groups! I hope more step up to the plate voicing the opinions of consumers who oppose mergers such as Xm-Sirius. The merger isn't needed. I want a choice of the service I think will serve me best. A merged company of XM-Sirius is not in my best interest, as Mel and Gary only care about their stockholders and their own pockets, not us the subscriber! DOJ and FCC, turn this merger DOWN!!
Finally, a consumer group that's for the average consumer, not the XM and Sirius stock holders.
Finally, a consumer group that's for the average consumer, not the XM and Sirius stock holders.
Everyone putting out the blanket "these guys should shut up, the merger is great" line need to stop and think. Right now, there are two competing satrad companies. If you like XM better than Sirius, you get XM. If you prefer Sirius, you get that. Each one has it's points. What happens if, after the merger, they turn it into a bland load of crap. That's one audio option that has been removed from you. If there isn't direct competition in the satrad market, do you really think they're going to continue trying to innovate and provide new, exciting programming? Or are they going to slowly pare down the high priced shows and talent, and eventually charge you for the same garbage you can get for free? Just my thoughts on the subject
Hi I'm Dave. I'm a consumer. I WANT the merger.
Those who don't, either don't have SatRad or are associated with T-rad and the NAB. If I don't get what I am looking for from the merger, I'm gone and I bet many more will be as well. Which means what? That the merged company will go BK anyway!
Come on merger! Make it a SarRad Christmas!
Hi I'm Dave. I'm a consumer. I WANT the merger.
Those who don't, either don't have SatRad or are associated with T-rad and the NAB. If I don't get what I am looking for from the merger, I'm gone and I bet many more will be as well. Which means what? That the merged company will go BK anyway!
Come on merger! Make it a SarRad Christmas!
Except for a few people on this board (some of who are stockholders and don't give a fuck about the service as long as they make money) I don't know one single customer in favor of this merger on either Sirius or XM's side. Every single person I know with SDARS is completely opposed. Good for someone taking the side of the consumer in all this. They are, after all, the ones who will get screwed in this deal. There will be no additional bandwidth, there will be no NFL & MLB on one radio, there will be no O&A & Stern on one radio. If you really think that I'm sorry, you're just really gullible.
I agree with you pfreak - no one from a solely consumer point of view would be for this merger - it does not make sense. If you are in favor of this merger, you have to be looking through finance colored glasses, not understand the facts or maybe be a dual subscriber - that is the only way I can imagine you would be in favor of a monopoly in a creative industry.
The real fact that all the "more choicers" are missing is that there will not be more choice. As an XM subscriber, you will not get Sirius and as a Sirius subscriber, you will not get XM - unless you buy a new radio!! There is no more bandwidth on either network. I do not want the elimination of any channels on my preferred service. I also am not going to buy a new radio that the new company will be able to charge whatever they please for - what choice would I have to purchase a less expensive radio - there is no competition.
This merger is all about money - and that is fine from a business standpoint - and if you support it from that point of view - then that is fine too. But do not come on this board and tell me that this merger is going to provide you with more content, more choice and a better listening experieince - we all know that is not true.
And for full disclosure - I am an XM stockholder and I still oppose this merger - I may lose a few bucks, but at least I will continue to have the service I originally wanted.
What part of Consumer choice are you nay-sayers forgetting?
If XM-Sirius don't please us we leave. How good is that for shareholders?
Mass Exodus = failure for Mel, for Howard, for Stockholders.
They have to make this the best damn service available or they lose us to internet radio coming. THe consumer wins or the shareholder loses - it's that business black and white.
The shareholders of both companys think so as well as several auto manufacturers and major retail distributors. How is it that all these business minds (including myself) can understand this simple supply and demand principle and yet these naysayers refuse to get it?
ahh, hidden agenda.
I am a dual subscriber and a longterm stockholder of both companys.
I am also a WAN owner, an IPOD owner, a TREO smartphone owner and I own at least 5-10 AM/FM radios that are nothing but commercials to me.
I APPROVE THIS MERGER and I AM YOUR TARGET CONSUMER.
Anyone that doesn't listen to SATRAD has absolutely NO SAY in this because it doesn't affect them and they should not be making choices for me - A MULTI-SUBSCRIBER.
Good Day
Posted by: pfreak | November 27, 2007 10:04 AM
"I don't know one single customer in favor of this merger on either Sirius or XM's side."
Posted by: Miss the 8M
I agree with you pfreak - no one from a solely consumer point of view would be for this merger - it does not make sense. If you are in favor of this merger, you have to be looking through finance colored glasses, not understand the facts or maybe be a dual subscriber - that is the only way I can imagine you would be in favor of a monopoly in a creative industry.
I must disagree with both of you,
I am an XM subscriber and I am NOT a stockholder looking to line my pockets and I DO WANT the merger to happen. To me it does make sense because I could care less about listening to sports on the radio and if I want news I go to the computer and look up what I want. I bought XM for music not talk radio. Honestly now if I wanted to hear people talk I could have stayed with free FM. Bottom line is if I can lower my monthly bill and still get what it is I bought XM for then I am for it.
For all you pro-merger guys...
I am a dual-subscriber, a CONSUMER, and I do *NOT* want the merger. Why? Because a merged entity offers me nothing more that I already receive, and actually *TAKES AWAY* choice.
How? I enjoy certian channels from XM, and I enjoy certain channels from Sirius. If they merge, chances are they will reduce channels that they (read: The boss and his cronies) deem redundant. How does reducing my choice between an XM version of a channel vs a Sirius version of a channel offer me more choices? Hello? Anyone?
If you are pro-merger or anti-merger, please don't speak for all of us. There are several on both sides of the fence.
As a dual-subscriber, I agree with much in this "consumer report."
I say NO TO THE MERGER!
Wow, you can really tell that people are clueless to how things work! Let take the common sense angle: If you dont like your radio (sirius, xm, fm, am, whatever) you have the ability to change it, cancel a subscription, even turn it off. Sure some people will make money on the merger, these same people probably made money on them before the merger also, or would have made money in other areas of the stock market anyway. As for the ceo's well yes, they make money on stock. So while yes they will probably make good money via a merger, what do you think happens if they let the company run down? They lose their money!! These people are gonna make good maoney regardless! So if money is your concern dont you think they would continue to drive the business as this allows them to continue to make a living. So back to the first comment; if they merge and you dont like it or the service, well you can turn it off or not buy it if you dont already have it. I believe this will make a better product in the long run because after all a company, every company, is in business to make money. If they dont please the consumer then they lose the customer. Lose the customer, lose money, lose money, lose stock holders, continue this and eventually close the doors to your business. Do you guys really think this is anyone's plan --- come on lets be realistic and use a little common sense!
If the merger is bad and they dont take care of the customer (US) all the competition (i-pod, microsoft, slacker, internet, fm, am, etc, etc) will be sure to take over anyone that wants to change service. Sirius/XM both know this, probably why they actuallt want to merge to have a chance to survive. Remember a company has to eventually make money to stay in business. If you like your satellite radio regardless who you are with you better like this merger or it may be gone anyway. As for the people against it well look at them they are many competition. what company dosent want less competition?? no wonder they are all against it!
One more thing: (while some people do have both many do not or can't afford both)
Ask a friend of yours who has a ipod why doesnt he/she get sirius or xm? chances are they will say why do i need it i have my i-pod!
Ask another with satellite radio why he/she doesnt have a i-pod? chances are its because they have satellite radio. (I know thats why I do not own a i-pod)
That my friends, is competition!!
Wow, you can really tell that people are clueless to how things work! Let take the common sense angle: If you dont like your radio (sirius, xm, fm, am, whatever) you have the ability to change it, cancel a subscription, even turn it off. Sure some people will make money on the merger, these same people probably made money on them before the merger also, or would have made money in other areas of the stock market anyway. As for the ceo's well yes, they make money on stock. So while yes they will probably make good money via a merger, what do you think happens if they let the company run down? They lose their money!! These people are gonna make good maoney regardless! So if money is your concern dont you think they would continue to drive the business as this allows them to continue to make a living. So back to the first comment; if they merge and you dont like it or the service, well you can turn it off or not buy it if you dont already have it. I believe this will make a better product in the long run because after all a company, every company, is in business to make money. If they dont please the consumer then they lose the customer. Lose the customer, lose money, lose money, lose stock holders, continue this and eventually close the doors to your business. Do you guys really think this is anyone's plan --- come on lets be realistic and use a little common sense!
If the merger is bad and they dont take care of the customer (US) all the competition (i-pod, microsoft, slacker, internet, fm, am, etc, etc) will be sure to take over anyone that wants to change service. Sirius/XM both know this, probably why they actuallt want to merge to have a chance to survive. Remember a company has to eventually make money to stay in business. If you like your satellite radio regardless who you are with you better like this merger or it may be gone anyway. As for the people against it well look at them they are many competition. what company dosent want less competition?? no wonder they are all against it!
One more thing: (while some people do have both many do not or can't afford both)
Ask a friend of yours who has a ipod why doesnt he/she get sirius or xm? chances are they will say why do i need it i have my i-pod!
Ask another with satellite radio why he/she doesnt have a i-pod? chances are its because they have satellite radio. (I know thats why I do not own a i-pod)
That my friends, is competition!!
Wow, you can really tell that people are clueless to how things work! Let take the common sense angle: If you dont like your radio (sirius, xm, fm, am, whatever) you have the ability to change it, cancel a subscription, even turn it off. Sure some people will make money on the merger, these same people probably made money on them before the merger also, or would have made money in other areas of the stock market anyway. As for the ceo's well yes, they make money on stock. So while yes they will probably make good money via a merger, what do you think happens if they let the company run down? They lose their money!! These people are gonna make good maoney regardless! So if money is your concern dont you think they would continue to drive the business as this allows them to continue to make a living. So back to the first comment; if they merge and you dont like it or the service, well you can turn it off or not buy it if you dont already have it. I believe this will make a better product in the long run because after all a company, every company, is in business to make money. If they dont please the consumer then they lose the customer. Lose the customer, lose money, lose money, lose stock holders, continue this and eventually close the doors to your business. Do you guys really think this is anyone's plan --- come on lets be realistic and use a little common sense!
If the merger is bad and they dont take care of the customer (US) all the competition (i-pod, microsoft, slacker, internet, fm, am, etc, etc) will be sure to take over anyone that wants to change service. Sirius/XM both know this, probably why they actuallt want to merge to have a chance to survive. Remember a company has to eventually make money to stay in business. If you like your satellite radio regardless who you are with you better like this merger or it may be gone anyway. As for the people against it well look at them they are many competition. what company dosent want less competition?? no wonder they are all against it!
One more thing: (while some people do have both many do not or can't afford both)
Ask a friend of yours who has a ipod why doesnt he/she get sirius or xm? chances are they will say why do i need it i have my i-pod!
Ask another with satellite radio why he/she doesnt have a i-pod? chances are its because they have satellite radio. (I know thats why I do not own a i-pod)
That my friends, is competition!!
Ok, this was filed sometime this month?? and the time line for filing comments to the FCC was supposed to end in what, August? and this will mean, if they are still allowing comments to be filed, that the comment period is still open?? and that means this will be drawn out until xx of whenever...
The people with iPods have never tried SDARS. There is no competition.
pfreak: Are you actually for real? Since they never tried it they are not competition! what?
See this is what kind of craziness that causes wrong opinions and incorrect things to happen! Maybe they havent tried satellite becasuse of the i-pod, if there were no i-pods maybe they would have a sirius or xm radio (huh, competition i guess). Thanks for adding proof to my point!
So in reality you are saying:
Satellite TV and cable TV companies are not competing against each other. Surely not everyone has tried both! Come on man have you seen all the ads? do you even watch tv or listen to radio for that matter!
Since I have never tried every type of vehicle that they are not in business against each other?
Since I have not shopped at every clothing store in my town, they are not competing for the business!
I have not bought a house from every reality company, so they dont both want my business!
I havent tried every cell phone company but i am sure they are competing with the one I have, again seen any TV commercials in the last few years!
Lets be real people, the pie is only so big for the same type items. These "radio items" are alike but every individual does not need all of them at once so we must choose how to listen to our music. Hence - competition!
Remember there are many types of apples at the grocery store from different companies as well, but when you buy them you dont buy them all, however they are all still apples.
Pass the merger - let us have the best of both!