Sirius/XM Merger: Will my radio still work? (and how much will it cost?)

Tuesday, March 25, 2008 at 2:16 PM
Tags: 2, XM

Sirius-XM at New York Autoshow
I am questioned constantly (nearly everyday even) from satellite radio subscribers concerned about their existing radios. Since the DOJ approved the merger, these questions have bombarded my inbox even more: Will my Inno work after the merger? Do I need to buy a new Stiletto after Sirius and XM merge? I just bought a new car, will my new satellite radio still work? You get the idea.

Here's the facts:
From day one Sirius and XM have promised that no existing radio will be made obsolete by the merger. (Afterall, that would be silly from a business sense wouldn't it?) The reality is that you will be able to get the "best of both" Sirius and XM on any of today's satellite radio devices with one monthly subscription.
  • If you're an XM subscriber:
    You'll continue to receive your existing XM service, and gain the ability to receive certain Sirius programming.

  • If you're a Sirius subscriber:
    Sirius customers would continue to receive their existing Sirius service, and be able to obtain certain XM programming.
There are eight different packages that the companies have announced they will offer following the merger. Prices for each will range from $6.99/month to $16.99/month. If you don't want anything to change, it won't - the "Everything" packages will cost the same as what you currently pay.
Can I get MLB on my Sirius after the merger? Will I can get NFL on my XM?
The real answer? We don't know for sure. If you read through those post-merger channel lineups, you'll notice that there are "top selections" made available for both sides. Obviously, like anything else in this world, contracts will need to be negotiated to iron out all the details. We will find all that out after the merger is finalized.

First-ever A La Carte packages
Of those eight packages, two will be "a la carte" packages. These will be the first ever a la carte options in subscription media. Ever. You will have the choice of either a 50 channel package (starting at $6.99) or a 100 channel package ($14.99), and then choose from a selection of channels to your liking. "Premium" content will cost more, but this will be the first time that you can pick and choose what channels you want on your radio. (Hint: if you mostly want the commercial-free music, with a smattering of news/talk, then the a la carte packages will be perfect for you.)

There's one caveat: A la carte programming will only be available for subscribers using new radios.

These new a la carte capable radios are currently in development and will be brought to market following final approval of the merger. Sirius and XM originally estimated it would take one-year to bring them to market, but since the merger process has dragged on much longer than anyone expected, it's hard to know the exact timeline now.

If you have any questions, as always, feel free to email me at ryans@orbitcast.com and I'll help out as best as I can.

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Comments

Judging from what I've read, it looks like I will be spending more money than I currently do if I want to listen to baseball games live on satellite. Am I correct in assuming this?

Also, if Sirius bought out XM, why the hell even get XM music channels around? My brother has XM and the music sucks and doesn't even compare to Sirius. The only thing XM has going for it is the MLB Package. This merger is going to cost be more if I want to listen to games. Obviously, I will not be changing anything with my Sirius.

Of course, if I am wrong in any of these please correct me accordingly.

At some point in time the aging XM satellites are not going to get replaced. Maintaining two satelllite systems simply does not make sense long term, more than let's say six years or so. I feel that Sirius will offer along the way a free module to XM car radio users so their OEM units will be able to hear Sirius. As for the plug and play units, either free or very low cost replacements will be offered. All of this would be far cheaper than spending $500 million for just one XM satellite. All new satellite receivers will be Sirius only or a far fetch maybe dual format receivers, but that is unlikely.

That's how I see it and I could be all wrong, but I can't imagine two separate and incompatible systems going on forever.

You are wrong in one area. Sirius is not buying out XM. This is a merger of equals.

Yes, the music is different between the two. Sirius seems to play more popular hits (meaning same stuff you hear on FM) and XM plays deeper tracks, and a little more rare, mixed in with a little of the popular music (meaning sometimes they tend to be a little "too cool for the room.")

Neither one is worse than the other. It all just depends on your liking. I'm an XMer, and there are some days where I would like something more popular, which is when I quick scan the FM dial. I just felt that (for me) Sirius played too much stuff thats on FM, so I didn't want to pay for that, which is why I went XM. More often than not I enjoy the slightly more rare music. But again, there are days where the 'too cool' music on XM annoys me, but I usually snap out of it, after I scan the FM channels and it reminds me why I went to satellite in the first place. :-)

"You are wrong in one area. Sirius is not buying out XM. This is a merger of equals."

Spaulding Smails, direct quote from AP. No hype, Sirius buyout Xm, means Sirius is buying Xm!

WASHINGTON (AP) - The Justice Department approved Sirius Satellite Radio's $5 billion buyout of rival XM Satellite Radio on Monday, saying the deal was...

I honestly think XM has the better technological infrastructure, it is very likely their satellites will be used, not Sirius. Compare the XM radios to Sirius, for instance. XM clearly has the better technology from what I've seen.

Why are there some people who seem to think one company will dominate the other completely. I doubt that would happen. If Sirius was really 100% confident in their own ability they wouldn't have offered to merge.

I do think we're going to see consolidation of the music channels--that makes the most sense. I can only hope the best of both worlds becomes the norm.

I'm Sweden on this one - I have both and love them.

Here are 2 fascinating 'things to watch' in my opinion.

XMers - I think they are the most vulnerable to lose. XM has deeper playlists and more rabid music fans. SIRI will have to be careful to keep them.

Stern - Surely they will add Stern ASAP to existing XM radios as an option of 'Best Of'. Love him or hate him - he drives subs. My Skyfi2 works much better in the office than Starmate so here's hoping.......

As Ryan stated - for the time being - no one has to do anything if you like what you have. I would think a rabid MLB fan would just pick up a used XM on Ebay and add the 'Best of Siri' and you're set.

So basically if I'm interpretting things correctly....

If I'm an XM Sub and I want NFL, I'd have to pay an additional $4.04 if I wanted to get NFL (provided that NFL Radio falls under the "11 top selections from Sirius" blanket.

If I'm a Sirius Sub and I want MLB, I'd have to pay an additional $4.04 is I wanted to get MLB (again...provided that MLB Radio falls under the "11 top selections from XM" blanket.

The way I'm seeing it, it may be more beneficial for me to just get a new plug & play unit from the new company once they merge, and transfer any of my pre-paid subscription to that (If they allow that).

Either way, I fully expected to have to pay a little more in order to get NFL. I just wish the current customers could drop channels and add other channels. (Like if I could drop MLB and add NFL, or something like that).

Is there confusion about what will be available to current subscribers after the merger.... Yes. However, much of this confusion has been the fault of the media, as usual, and the anti-merger proponents who intentionally confused the issue. I truly believe that this has caused a reluctance in the retail buyer to commit to new hardware... thus trouncing retail sales. The crux of the confusion is the lack of clearly stated facts. Ryan, even in your post there is confusion. You addressed accurately the basic fact that all current sat radios will continue to operate without any action needed. The real confusion starts with the other two categories. 1) ala-carte programming and 2) Best of programming. Ala-carte programming needs a new radio as you stated (that should be clear to all). The Best of programming is more confusing. Since current radios/antennas can only receive and process Sirius or XM signals, the new Sirius will need to cross-feed the signals to each others SATS in order for say a Sirius radio to receive MLB or an XM radio to receive Howard Stern. This cross-feed is limited by the SAT's bandwidth, besides, it wouldn't make much sense to cross-feed the 40's, 50, 60, 70, 80, 90's stations to each other... we're trying to reduce production costs! Mel will cross-feed the signals which he feels will bring in the most new or incremental revenue... so you can figure on HS, Oprah, MLB, NFL, NHL, NASCAR, and the like. Personally for me, most of the cross-feeds will not interest me as I'm not a sports junkie or talk show groupie. The stations I would like to hear will most likely not be cross-fed. I currently have 4 Sirius subs and one XM sub in my new Honda Pilot. I would like to see an expanded Family share plan between the two services.... say a maximum of 6 radios, so that I could add my XM sub to my existing Sirius account at the $6.99 rate.... that would be in the Public's interest. The ala-carte pricing and WEB based selection is great... but my XM radio is nicely integrated into my NAV system with voice command and I don't wish to give that up. I hope that Mel will get very creative when planning out the new company (I'm sure he will) but people need to understand the limitations of the merger in the beginning. Eventually there will be dual-band units with ala-carte pricing and it will be awesome.... but for now the enhancements will be limited by the hardware. I think the merger is great and I strongly believe that Mel will take the new Sirius to great heights... and that's why I'm not only a subscriber but I'm an investor.

Paul .... Aging XM satelittes? Me thinks someone pulled the wool over your eyes.

XM has 2 nearly new satellites up there and 2 in orbit spares... while Sirius has 3 birds that are old and in need of replacement within the next 2-5 years.

XM's "XM5" is configures for and will retransmit both XM and sirius bands. The two new satellites XM sent up were to have "Additional features" but what they were have never been revealed.

As of now though.... with all the OEM's out there... neither company or neither system can be allowed to colapse after the companys merge. They must maintain the service.

As for "Miss Informatuion Central " (Post by TOM C) One has to wonder why EVERY press release from XM or Sirius states "MERGER" and one has to wonder why its assumed Sirius is buying XM when thats not what the remains company will be nor will Sirius shareholders represent a majority.

But if you all wish to live in your little dream world... then so be it.

TOM C,
So because it says "AP" that doesn't mean it's wrong?? All that comment means is the dummy who wrote that AP Article is as uninformed as most of the XM haters out there.

"This is a merger of equals" is a quote from Mel and Gary when this merger was first announced.

Any reference to a "buyout" is regarding the buying of shares of XM, because more Sirius shares exist than there are XM, therefore, you have to pay the one that has fewer shares (XM) with the one that has more shares (Sirius).

It's still not a buyout like people like to imply that it is.

This is a MERGER not a BUYOUT.

Gotta love the clueless SIRI fanboys spewing misinformation.

Once the merger is approved, things will remain relatively the same for a few months. Then, the companies will begin elminating redundant channels. They will look at each channel individually, not as a group. In some areas (country for example), XM has clearly superior channels, DJs and infrastructure. In others, SIRI may be better. This is not a case of SIRI or XM has better music so the other will completely go away. There will be a lot of picking and choosing from the 2 services to create the best possible selection of channels.

Neither company is that much superior to the other. That is why both have a roughly equal number of subs and why both would be in serious financial trouble if this deal didn't happen. The air of superioirity the SIRI fanboys have is laughable. This is a merger of equals. The news stories might say buyout, but the structure of the company afterwards shows otherwise. Both companies know what works for them and will be sure to keep what works a part of the new service.

After more than a year of standing still, they need to do whatever it takes to keep existing subs and get new ones, and eliminating popular channels from either service won't let this happen. Oh, and O&A always win in the end. The truth hurts, Stern zombies. Ron & Fez, noon to 3.

To me, I'm keeping XM Everything and hoping the Sirius mentality doesn't ruin my favorite channels. With Abrams leaving XM, I'm personally a little scared.

I'm a Stern fan, but I seriously doubt O&A will be dropped from satellite once things start rolling, so that argument should stop. Plus, it's probably the only place they'll be available by this time next year since their scary talent is being dropped from regular FM on a monthly basis. "Always win" indeed. I admit O&A have their fans, but they've never proven themselves to be a driving force in either industry. Still, I think they'll stick around on satellite.

"Lack of interoperable radio key to XM+Sirius merger approval"

"In an unusually sideways argument from the US Justice Dept. this afternoon, the fact that both XM and Sirius satellite radio services have been unable to create an interoperable radio device for the foreseeable future, has been put forth as evidence that a merger between the two entities -- which the DoJ approved this afternoon -- would not reduce competition between them."

http://tinyurl.com/2ajgq6

That's strange...

Question: If I don't get the everything package, will XM bombard me on a regular basis screaming, "GET XM EVERYTHING!!!!!"

Answer: You don't know the half of it.

"Sirius seems to play more popular hits (meaning same stuff you hear on FM) and XM plays deeper tracks, and a little more rare, mixed in with a little of the popular music (meaning sometimes they tend to be a little "too cool for the room.")"

Then again for XM subscribers, I suspect that Slacker (http://www.slacker.com) has just been handed a major marketing opportunity. All they need now is a car kit for their Slacker Portable player...

>> Also, if Sirius bought out XM, why the hell even get XM music channels around?

Sirius didn't buy XM; Sirius will be merged into XM Satellite Radio Holdings, half of Sirius owners' equity will be handed to XM shareholders, and all of XM's shares will be held by Sirius. The answer, however, is that many, if not most, believe XM's music channels are far superior.

>>> At some point in time the aging XM satellites are not going to get replaced.

Genius. Sheer Genius. XM's satellite are new. SIRI's are approaching end-of-life. Geez.

"TOM C,
So because it says "AP" that doesn't mean it's wrong?? All that comment means is the dummy who wrote that AP Article is as uninformed as most of the XM haters out there."

No, Spaulding it dosn't mean its true, it is the reason for the first guys post, I was tring to point out that the HEADLINE say Sirius is buing XM, so no reason to be a DICK to some one thinks it. I was one of the major headlines lastnight.

RE: 2nd. post
Paul: Several people have already corrected you on the issue of Sirius vs. XM satellite age but I completely agree with you that one or the other constellation must go if we are to see any meaningful synergy savings.

That of course means that half of the existing radios will cease to work & one of the two promises will be violated.

This is why I have stated in the past that it will be very important to immediately stop activating radios.....especially radios in vehicles. Every radio that works with whatever system is stopped will be a problem for the merged company.

Is it reasonable to assume that "Area 33": will likely be one of the 11 Sirius channels available on existing XM radios? I assume this might be the case because XMers are losing "The System" based on those proposed channel lineups. Meaning that we'll only have BPM and The Move after the merger on existing radios for Dance music. It seems that they would "have" to try to complensate for the loss of "The System" for existing subs by adding "Area 33" to XM.

So we only pay the same as now if we keep listening to the same stations? It seems those who want both Stern and O&A will have to pay more, whether they already own Sirius or XM equipment?

"I assume this might be the case because XMers are losing "The System" based on those proposed channel lineups."

If I remember correctly, that channel is licensed/simulcast by XM from Worldspace. They probably don't have the rights to broadcast under a merged XM-Sirius network.

Ah the proof is watering down the fanboy cry's for sirius's purchase of xm. Prices are going up and choice of content available is dropping. Face the music ladies sat's are a very expensive way to provide content. Sirius and xm have already realized profit is a much like a fanboy dream aka based on fantasy. With Sirius buying xm and merging the company's expenses will be cut but it won't be enough. Consumers who stick around to support this failing monopoly will be paying the bill which will not be getting any cheaper as some of us are being led like blind sheep into believing.

Prices are going up and choice of content available is dropping. Yet xmelot fanboys are still believe the BS hook, line and sinker.

Farwell, The System... you were one of my favorite channels....

RonandFez will still stop their show at 2:40,interoperability or no.

thj

ronandfez like o&a will be lucky to have JOBS after sirius buys and mergers with xm. There is alot of talentless hours of bandwidth being wasted over at xm with those 4 idiots.

Steve Langford is more well endowed than any other newsman on XM.

Seems to me that until the final blessing from the FCC no one can say how things will end up? It's very possible that no increases will be allowed.

We're all guessing because our supposed democracy can't take a shit after 14 months.

Remember: Bush is the real killer!

Plowboy

It still continues to completely amaze me that we have all these music channels, all the sports, news and other stuff, and who constantly gets talked about? I don't need to fucking tell you. Pests and Zombies, come up for some air. The only ones waging this war is you and nobody, especially the actual people even give half a fuck. Buy a clue and learn that the only losers are you in this, because you're continually throwing away about 150 other channels with this attitude. yeah, nothing will change fo sure, because after the murger, the pests and zombies will still continue to go through this pointless bullshit.

I think sirius should give the current xm - sirius subcribers who have been there from the start one of the premium channels for free until there current subscription is up as a thank you. They could even promote to new subs that they counld get in on this until a certain date for the 12.95 price until new radios are out.

What happens with the plans of lifetime subscribers to Sirius?

Tom, it's complex to explain, but I'll give it a try....

Reuters (always) and AP (usually) call it a buy out of XM by Sirius. Financially that's how the deal is structured. As came up in the conference call just after the merger was announced, there's a reason. There are covenants in some of the Sirius financing (notes) that would trigger huge refinancing costs if Sirius underwent a 'Transfer of Control' so to avoid that, the companies structured the deal so that XM, which does not have the covenants, is the one that has the transfer of control. But, in fact, at the end, XM Satellite Radio Holdings is the 'surviving' entity.

Also, if you look at the new makeup of the combined company you will see:

5 members of the 12 member board of directorsfrom Sirius
5 members of the 12 member board of directors from XM
The remaining 2 board members are representatives of GM and Honda, which are major owners of XM.

So the board is stacked for XM shareholders.

Gary Parsons is Chairman of the Board, Joe Clayton is out.

Mel Karmizan is CEO. Hugh Panero (or now Nate Davis) is out.

That's the structure.

What will really happen no one knows, but in the past companies Mel has taken over, the Board of Directors only matters on the 4 days a year that they meet. When he got hold of Westinghouse he got rid of the Chairman within a year.

But.....in those cases he was the one bringing in all the cash flow. This time, the two parts are both not cash flow positive so I suspect the Board of Directors will be relevant. Since Mel has already cut everything he can out of Sirius expenses....look for most of the cuts (and layoffs) to be XM folks. He will also hijack XM-5 to carry the Sirius signal and save money that way.

By the way, for everyone who thinks the new satellites will carry both signals, not exactly. They can be tuned to cover each company's spectrum, but not both at the same time....there isn't enough power. Still it will be a savings on in orbit spares. But the Sirius satellites will need to be replaced anyway.

I suspect they will choose to put up 2 geostationary birds, and modify XM's repeater network to carry both signals. it will be a saving of cost in satellite launches and improve Sirius portable and in building coverage.

Canadian coverage will be a bit worse, as will Alaska.

We'll see

Ahhh yes I see it know. I have been an XM subscriber for some time, but was looking for the "best of both worlds" from both satellite companies. I do not listed to much music, maybe 3-4 channels every now and then, but mostly talk, sports and XM 202. But to get the a la cart, I have to buy a new radio for $150 at least and I will have to buy all the new equipment that fits that radio so I can have satellite radio in my home, office and car which I have now. I have a SkiFi2, so my equipment is pretty old.

I was in favor of the merger for the a la cart options but now it looks like if I want that cool and unique feature, I better be prepared to pay through the nose. So much for saving consumers money!!!!!!

Ahhh yes I see it know. I have been an XM subscriber for some time, but was looking for the "best of both worlds" from both satellite companies. I do not listen to much music, too much, maybe 3-4 channels every now and then, but mostly talk, sports and XM 202. But to get the a la cart, I have to buy a new radio for $150 at least and I will have to buy all the new equipment that fits that radio so I can have satellite radio in my home, office and car which I have now. I have a SkiFi2, so my equipment is pretty old.

I was in favor of the merger for the a la cart options but now it looks like if I want that cool and unique feature, I better be prepared to pay through the nose. So much for saving consumers money!!!!!!

Ahhh yes I see it know. I have been an XM subscriber for some time, but was looking for the "best of both worlds" from both satellite companies. I do not listen to much music, too much, maybe 3-4 channels every now and then, but mostly talk, sports and XM 202. But to get the a la cart, I have to buy a new radio for $150 at least and I will have to buy all the new equipment that fits that radio so I can have satellite radio in my home, office and car which I have now. I have a SkiFi2, so my equipment is pretty old.

I was in favor of the merger for the a la cart options but now it looks like if I want that cool and unique feature, I better be prepared to pay through the nose. So much for saving consumers money!!!!!!

Oops sorry for the triplicate posts!

We've all known what these costs were from the beginning. For most of us, sat radio is going to cost more than we pay now. Unless you're a shareholder, and unfortunately this board is becoming more and more a shareholder not SDARS fan site, then this deal sucks and has always sucked. If you paid attention a year ago, you'd know that you'll need a new radio & more money to take advantage of al la carte.

My question is that since I am a lifetime Sirius subscriber, will I automatically get the entire package or would I need to upgrade that service?

I'll miss Laugh USA. I like the old comedy albums. The XL comedy channels get tedious with the sex and drug humor. I'll also miss The System.

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