I'm not so sure... dual services to choose from/understand might confuse/scare/discourage newbies considering taking the plunge. On the other hand, with so many autos now bundled one service or the other I think both companies will continue pick up subscriptions.

Personally, I've been dissapointed with what XM has been doing to my two favorite stations (Chrome, Groove) lately by playing out-of-genre tunes and increasing the frequency of repeats. Wonder if it's any better over on Sirius.

I think that photo says all we need to know about Cramer anyway...

"Sirius-ly", though - (sorry Ryan) I remember talk of the *opposite* happening when XM was doing better by leaps and bounds over its competitor in the days before Hoo Hoo.

Whatever - competition is good, regardless. I highly doubt the government would allow such a merger anyway. And no, Worldspace doesn't count as a competitor... ;-P

Are you suggesting that churn is somehow "worse" for the company with more subs? Sure, I suppose it is on a number basis, but it shouldn't make any difference on a percentage basis. Lets see what the churn rate is at the CC.

You would think it would be easier for the company with more subs to obtain more subs (i.e. more friends/family who might be impressed by the service). I think it is immature to suggest that the greater "number" -not rate- of churn is the explanation for XM's lackluster quarter...

I don't think a merger will happen either. These damn companies need to start seeing black, then investors will come. As long as xm and sirius are at each others throats, we as customers will get some kick ass radios and service as they one up each other.

Sirius signing more subs? On the surface it looks that way. Retail should show Sirius with a slight edge. What everyone is missing is the way Sirius Chrysler and now ford are offering 1-3 year subscriptions included in the car. Sirius already had at the end of Q1 over 1 million of these OEM deals out there. Why is this signifigant? Cause XM "churns" them out from GM after 3 moths and thus only 3 months of XM's 540,000 OEM are ever counted. Sirius keeps them for a year or more. On july 17th we should know more about how many subscribers in the sirius stable are true self paying. It was 75% compared to XM's 92%. I just with the market and all investors would see the difference between a self paying sub and one thats in a promotional period as well as how many will churn out. Is sirius heading in to the Churn storm soon?

merger is not out of the question since radio is a "direct" competitor to sat.

you can get radio everywhere, so 1 sat company would not be a monopoly of broadcasting services

>> you can get radio everywhere, so 1 sat company would not be a monopoly of broadcasting services >>

I tend to think it *would* be a monopoly, since only having *one* company of any particular type of service (albeit similar to an existing product - i.e. terrestrial radio) wouldn't serve the best interest of the consumer.

Meaning the one company could charge anything they wanted, put out inferior products without fear of direct competition, and be just generally apathetic towards their customers because there's "no place else to go".

Anyone who's experienced the satellite radio product also knows full well that going back to commercial radio *isn't* an option.

Excellent blog post. I agree, Cramer is a dumb asstard.

Another absurdity that wasn't pointed out: XM would never let itself merge with Sirius. Currently, Sirius is worth 1.7x XM, which means in a merger, XM shareholders would get about 1/3 of the merged company. That would never happen.

One more absurdity: Where is Sirius going to get the cash to buy XM!?

Cramer, Kill yourself.

Lord Westfall

Merger is possible. There are (2) more satellite radio licenses being issued in 2008. Sirius is going to lose 1 billion this year, XM probably 500million. They need to join forces. With demand dwindling and churn rising they will probably need 10million plus to turn a meager profit. On the other hand 13.5 million subs would allow them to turn a profit now.

Sirius can't dilute their stock further and XM will be broke by the end of the year. Positive cash flow from operations is not free cash flow, they still won't be making any money until late 2007.

Doesn't the basic incompatability of thier systems exclude a merger. I mean for the customer...do they have some sort of a retro-fit radio adapter?
As far as the FCC, I'm not sure how many of the monopoly laws include sat. radio. They may have little authority.

I think it's pretty simple, no one really knows exactly which way the market will turn or what the success rate of bother services are. In the long run I am sure both companies will be fine and in direct competition with each other. Neither company has a severe advantage over the other in the category of programming and ultimately listeners are going to be attracted by popularity but held by programming. It would seem right now that Sirius is winning the popularity contest and are riding it out for everything it's worth. Don't forget that for 4 years XM had been the stronger competitor, companies ebb and flow and if anyone has really been watching the stock these two companies seem to be moving together.

A merger would erase the competition between the two companies and in my opinion would allow the merged company to give the listeners less than what we pay for now.

I'm all for a merger. XM has been mis managed from day one and only now that we have a competitor does it show. Just to get the investors off xm's ass it might have to merge with Sirius. However Sirius has no need for anything xm. XM has nothing Sirius would need other than subs. Piss poor programming, terrible sound quality, a bunch of on air no-talents and those behind the scenes are even worse.

Those in the know have been saying this for years.... yet xmelots cant handle the truth, cant tell good talent, either. Sure hope GM drops xm like the pos it has become.

One sat radio provider is fine, there is always AM and FM. Bring it on, and put xm to rest its a total waste of freq. BeGONE xm, BeGONE xmelots,

Cramer is a windbag asswipe. A screaming little Hebrew every single night is like hell to the thinking.

Note: I didn't post this last one - someone else is using 'Pete'.

So, after the announcement just made today, do you feel like the idiot? You should.

Wow! Cramer's looking like the smart one here, huh?
Oh, ye of little faith! Let the merger BEGIN!