Breaking: XM and Sirius officially merge!
Earlier today, there were rumors regarding a possible merger between satellite radio giants XM Radio and Sirius. Now, reports have come through that the merger is official - and an official press conference is scheduled for tomorrow.
Is this crazy news or what? Both XM and Sirius have spoken of a possible merger for what seems like years. Due to regulatory hurdles, the deal was never even attempted. Now, it looks like they may have found a loophole in the law, and they’re making the plunge. I personally think that the FCC will never let this happen. If so, this would indeed create a monopoly in the satellite radio industry.
Looks like we’ll have to wait until tomorrow to get the full scoop, so stay tuned.
Press Release [XM] Via [Gizmodo]
Sirius CEO talks of possible merger with XM
Mel Karmazin sounds like quite a character. On Monday, he was interviewed by SmartMoney and had quite a bit to say. He started out the interview blaming XM for the “hiccups” in the industry. Then later in the interview, he talks of a possible merger with XM. Mel says that he’s based his entire career on shareholder value - I’d say that forming a monopoly in the satellite radio industry would bring quite a bit of value. It’s also notable that he no longer thinks government regulations will stop a merger from happening (to which I’m going to disagree, but he would know better than me). He notes the following:
If there’s an iPod with terrestrial radio, it’s hard to believe government is worried about two satellite radio companies combining.
Read [SmartMoney]
XM goes all-out for sports with XMSN
XM has officially announced that they’re adding an all sports, all the time channel called XM Sports Nation to their lineup. The channel will have original first-run shows hosted by such celebs as Dale Earnhardt, Jr., Jimmie Johnson, Cal Ripken, Jr., Coach Mike Krzyzewski, James Carville and Luke Russert. They’ll also syndicate shows from Sporting News Radio by Tim Brando, Tony Bruno and Troy Aikman, among others. Sounds like a hell of a channel… if I could only get away from my computer. The channel is set to debut on August 28. Check out the programming guide here.
Via [Orbitcast]
Details on the RIAA vs. XM lawsuit
RIAA has done it again but this time instead of going after more innocent 6 or 87 year olds for illegal downloads they are attacking XM. If you are not familiar with the new Pioneer Inno (which we will review in two weeks) and Samsung Helix XM 2 Go players, the point is question is the recording capabilities of these devices. Both devices are first and foremost portable satellite radios but they also have built in recording capabilities. RIAA is flipping out because now you the listener as a perfect digital copy of the hottest new song and may destroy the world with it distribute it illegally online. The suit seeks $150,000 in “damages” for every song copied by XM customers using the device.
Here is what XM Satellite Radio had to say about the lawsuit (via IBloggedThis) that was filed by the RIAA earlier this week (this was emailed out to all 6+ million subscribers):
Statement to XM Subscribers - The XM NationEverything we’ve done at XM since our first minute on the air is about giving you more choices. We provide more channels and music programming than any other network. We play all the music you want to hear including the artists you want to hear but can’t find on traditional FM radio. And we offer the best radios with the features you want for your cars, homes, and all places in between.
We’ve developed new radios — the Inno, Helix and NeXus — that take innovation to the next level in a totally legal way. Like TiVo, these devices give you the ability to enjoy the sports, talk and music programming whenever you want. And because they are portable, you can enjoy XM wherever you want.
The music industry wants to stop your ability to choose when and where you can listen. Their lawyers have filed a meritless lawsuit to try and stop you from enjoying these radios.
They don’t get it. These devices are clearly legal. Consumers have enjoyed the right to tape off the air for their personal use for decades, from reel-to-reel and the cassette to the VCR and TiVo.
Our new radios complement download services, they don’t replace them. If you want a copy of a song to transfer to other players or burn onto CDs, we make it easy for you to buy them through XM + Napster.
Satellite radio subscribers like you are law-abiding music consumers; a portion of your subscriber fee pays royalties directly to artists. Instead of going after pirates who don’t pay a cent, the record labels are attacking the radios used for the enjoyment of music by consumers like you. It’s misguided and wrong.
We will vigorously defend these radios and your right to enjoy them in court and before Congress, and we expect to win.
Thank you for your support.
We remember when it “became illegal” to record off the radio, well now digital days are here and they are trying to push that again. Not sure what will happen here for for XM seem like RIAA wants this to become a subscription service. Looking back, Sirius was forced to pay royalties. What will happen next, we can’t record off of HD radio too?
HD Radio is available but costly
So HD Radio has been available for a few months right now and we have yet to hear any chatter about it. No one we know has an HD Radio nor have we been contacted to check one out or have seen/heard promotions for the new high def audio besides on the regular radio (poor marketing move). I’m going to guess that most people who listen to the radio as opposed to their MP3 players or Cds don’t mind the analog static and less than perfect sound, hence they don’t care about HD Radio.
A group of broadcasters are going to be further promoting high-definition radio receivers by spending $200 million in advertising and promotions this year, especially with retailers. HD Radio promises to give FM broadcasts a free boost to near-CD quality, and gives AM near-FM quality sound. Also, radio stations are able to broadcast up to two digital sub-stations on top of the traditional frequency.
Receivers capable of receiving the HD stations are quite expensive. Home receivers generally start around $300 with the boxes needed to use HD Radio on compatible in-car stereos costing around $200. However, the service itself is free, which the group says is an advantage over satellite radio services XM and Sirius that charge a monthly fee.
Read [BetaNews]
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