Karmazin: Merger will "allow us to lower prices"
Tags: 2, XM
Mel Karmazin's testimony before the Senate Commerce, Science & Transportation Committee today drove the concept that a combined Sirius-XM would offer "more choice, lower prices." It's a mantra that has been repeated time and time again.
But Karmazin pointed out that a purpose of the merger is to compete better against free radio, and so the goal is to provide better value for consumers. In other words, the combined company will actually lower prices.
"Consumers who want fewer channels than currently offered will be able to select one or more packages of channels for less than $12.95 per month," said Karmazin in his testimony. "These packages will include an attractive mix of music, news, informational, sports, children’s, and religious programming."
An encouraging statement for those skeptical of a merged satellite radio provider.