XM Satellite Radio and Sirius Satellite Radio have issued a press release this morning highlighting that major retail corporations and auto manufacturers have thrown their support behind the XM-Sirius merger.
It's a good thing to highlight because if consumers really wouldn't react positively to a merged entity, then the retail/auto companies would feel the pain first. On the same token, alternative audio sources like HD Radio, iPods, and the like, are undoubtedly eating into retail and auto satellite radio offerings - so they're seeing the competition from the supply-side.
Both retail companies and OEMs the ones who are on the front-line interfacing directly with the consumer. So when companies like RadioShack, Circuit City Stores, and Crutchfield; join with auto manufacturers like Honda, Toyota and Hyundai; it's something to brag about.
And don't think the NAB doesn't understand the value of these filings. To the point where they listed Toyota as opposing the merger, a fact that Toyota was not very pleased about (and let's not forget the NAB's apology for misrepresenting the stance of several Congressmen).
Below are some of the quotes from FCC filings used in the press release:
"...the merger will bring greater vitality and financial resources to this upstart technology. Allowing this to happen will, in turn, spark a new generation of services and products with more advanced and user-friendly features. Consumers, of course, will be better off as a result."-- Julian C. Day, Chairman and CEO, RadioShack Corporation
"Based on our longstanding expertise in both the home and car audio entertainment business, we strongly believe that this merger will be beneficial to consumers. In fact, we believe that it is critical for the continued growth of this medium."
-- William G. Crutchfield, Jr., CEO and Founder, Crutchfield Corporation
"Circuit City believes that the FCC should allow Sirius and XM to implement their plans to make satellite radio a stronger competitor, and provide improved product and service to consumers, by approving their applications in this proceeding."
-- Philip J. Schoonover, Chairman, President and CEO, Circuit City Stores, Inc.
"We are informed that as a result of the proposed merger satellite radio customers will be able to select packages of fewer channels at lower prices. If these enhanced options in fact become available, satellite radio subscribers stand to benefit as entertainment choices would increase and overall pricing would become more affordable."
-- George S. Cary and Michael R. Lazerwitz, [on behalf of] Toyota Motor Corporation
"We believe that efficiencies realized from the merger will benefit our customers in other ways, as well. For example, the merged company will likely improve upon current in-vehicle services that support the driving experience, such as traffic and weather, and promote the introduction of exciting new services. It will also provide a more robust and stable platform for satellite radio generally, and maximize its prospects for success in the increasingly competitive market for audio entertainment services."
-- Wayne Killen, Director, Product Planning, Hyundai Motor America
"While American Honda has seen early promise in this collaboration, it has become evident that satellite radio and digital satellite services must compete mightily in the U.S. with a wide array of burgeoning entertainment forms and an ever-widening list of technology participants who are delivering services in this space."
-- Charles Koch, Manager American Honda Product Planning, American Honda Motor Co. Inc.
uuuuuh DUH!? If Circuit City no longer needed to stock PC based computers and only Apples cause All PC's and Apple were going to merge, Well then, Less product lines to stock and higher profit margins with less inventory, ... its a retailers Dream. Of course they support the merger.
I like how these retailers and OEM people are representing me. I thought the special interest groups are bad. So what makes retailers and OEM good along with the minority groups. I don't like this slant that people who are allegedly representing me.
Oh yeah, these statements are real persuasive, especially the one's from car-makers that own big equity interests in XM or Sirius and/or sit on their Board of Directors. Who really cares? What does it really add to the debate? Nobody and nothing.
What I want to know is, what are the auto dealers going to offer the folks with built-in units? If I want to go for the alá carte option, you're telling me I'm going to have to turn off the subscription in my car, buy a new portable unit and hook THAT up?
I'd be willing to pay money to get the unit switched out, but not a heckuva lot. Honda, make me happy or I'm going to have to consider trading in the car...
Pete:
I'd imagine that there will be XMDirect/SiriusConnect modules that can replace the satrad hardware (not the headunit, just the module that connects to the headunit).
Then again...
"Honda, make me happy or I'm going to have to consider trading in the car..."
As long as you get another Honda, I don't think they'll be too worried about that option...
The retailers are supporting the merger for the same reason that they encouraged ending the Blu-Ray vs HD-DVD battle. The customer shouldn't be forced to give up unique content on Sirius if they choose XM (and vice versa), just like they shouldn't be forced to give up HD-DVD movies if they purchase a Blu-Ray player. It will be much easier to sell the satellite radio service when they stop splitting up the content - and this would benefit both the retailers and the customers.
It might take a while after the merger before they can merge all the content onto one radio, but better late than never.
I just don't understand how someone could think this is a conflict of interest from the distributors. Their primary interest is to sell more radios - and customers are not going to buy more radios if the merger hurts them. It's a pretty simple concept - if the customer benefits from the merger, then the distributors will sell more radios.