Are XM and Sirius Satellite Radio Tying the Knot?
Sunday, July 27th, 2008
Last winter when I was a Teacher’s Assistant for the UCLA course “The Music Industry: Where is it Headed?” the head of XM Satellite Radio spoke to our class.
At the time, he talked about the possibility of a merger between XM and Sirius, but it was clear that there would be many hurdles to the union of the companies.
The main objection was the fact that the resulting company would have a monopoly on the satellite radio market since XM and Sirius are the only two companies in that market.
Those in favor of the merger argue that satellite radio is just one among many audio entertainment choices (iPod, traditional radio, etc.) and that the resulting merger wouldn’t be a monopoly because it is really competing against all forms of audio entertainment.
A few days ago, the LA Times ran an article stating that it is likely that the merger is going to happen.
As a consumer, I am very excited about the merger because I will have more channels and access to talent that I wouldn’t have access to had they not merged. Plus, I won’t have to pay more given that the companies agreed to a price freeze that will lock the current prices in for several years.
Satellite radio is a great avenue of exposure for unsigned artists. One of my songs, “Goodbye Beautiful Day” was on rotation on XM Radio’s XMU station. Hopefully the merger will give unsigned artists even more opportunities for exposure.