Sirius and XM Radio announced today that
they closed their long-awaited merger.

After a long wait of 17 months, the merger between the only two giants of satellite radio–Sirius and XM Radio–is finally over. The combined company, with more than 18.5 million subscribers, is now called Sirius XM Radio. It is set to rank as the second-largest U.S. radio company, based on annual revenues.

Sirius Satellite Radio Inc.’s $3.3 billion buyout of rival XM Satellite Radio Holdings Inc. will mean millions of subscribers will be able to receive programming from both services, while executives say it will create huge cost savings for the industry.

Sirius XM Radio will offer more than 300 programming channels spanning exclusive shows, such as those of Howard Stern and Oprah Winfrey, and à la carte programming. Subscribers will be able to select certain programs from each of the two former companies under one package.

The new programs are expected to begin rolling out in early fall. And as the companies previously stated, subscribers can continue to maintain their current service plan. Subscribers will not have to buy new radios to receive a mix of programming from both services, according to the companies. But if they want to pursue a special pay-per-channel à la carte option, they will need new sets.

The companies voluntarily agreed to a set of conditions, including a three-year price cap and an 8 percent set-aside of “full-time audio channels” for public interest and minority programming. They will also adopt an “open radio” standard that may lead to a greater variety of features in radios and greater competition among manufacturers.

XM investors will receive 4.6 shares of Sirius, and the ticker symbol will now trade under “SIRI.” Sirius XM Radio will be headquartered in New York, and its wholly owned subsidiary XM Satellite Radio will remain in Washington, D.C.

I used to work in Panama at a call center that provided customer service to XM Radio clients. I’m happy that both companies are finally joining efforts to provide satellite radio service to the U.S. market. The possibilities of upgrading the quality of sound and programming are enormous. I only regret that satellite radio is not available in Panama. Good Day!

After several months of negotiations, it was finally announced yesterday that Sirius and XM would merge. At his moment it is uncertain if it's a merge between equals or if Sirius actually bought out XM.

According to Yahoo News "Sirius Satellite Radio plans to buy U.S. rival XM Satellite Radio for $4.6 billion in stock to bring entertainers such as Oprah Winfrey and shock-jock Howard Stern under one roof, but a top regulator said the deal would face a tough time winning approval."

( Read more... )

Due to the wide acceptance of my previous two posts on satellite radio, I have decided to include a post that will explain how this technology works. I never thought these posts would attract so many readers to Epiac's Place. You know how the saying goes, the consumer is king.

We all know how annoying it is to travel through the countryside changing from one favorite station to the other because they just faded away or got infected with static. Most radio signals can only travel about 30 or 40 miles from their source. On long trips that find you passing through different cities, you might have to change radio stations every hour or so as the signals fade in and out. And it's not much fun scanning through static trying to find something--anything--to listen to.

( Read more... )

Yesterday I introduced the fascinating topic of satellite radio in this blog and how it could become the reappearance of the Golden Age of Radio. I'm so excited about the subject, that today I will further comment on this technological trend.

It's being called the next big step in broadcasting--the greatest improvement since the advent of the FM band. It's often referred to as satellite radio. But it's more accurately called subscription radio or pay-radio, as it isn't always delivered by satellite. It is always digital, though, and it will allow listeners access to crystal-clear, CD-quality music, 24 hours a day. And it's mostly commercial-free.

( Read more... )

Most of us witnessed the near death of the Radio industry after the Television industry emerged and took over the waves. The Golden Age of Radio is commonly referred to the period from 1935 to 1950. In 1935, radio became the "central medium" of Depression America; two of three homes had radio sets, the 4 national and 20 regional networks provided programs everywhere in America 24 hours a day, advertising agencies shifted money from newspapers to radio as public trust in print media declined but grew stronger in radio.

Companies like NBC, CBS and ABC first started out as radio broadcasters, before evolving into television heavyweights. After World War II, the post-war radio business exploded as controls were removed, manufacturing of sets resumed, the number of AM stations on the air would increase from 961 in 1946 to 2006 in 1949, and 6 millions autos had sets. A poll found that 63% of the American people regarded radio as their primary source of news.

( Read more... )