Bloomberg: Slump may seal satellite radio deal, reported on Dealbreaker's Opening Bell
Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. are expected to forecast slowing subscriber growth when they report earnings this week, a slump that could help build support for their proposed $4.6 billion merger.
Analysts expect XM, the bigger of the two, to predict 21 percent growth in 2007, to 9.27 million users, down from a 29 percent gain last year. Sirius is forecast for a 40 percent increase, to 8.45 million, after 82 percent growth in 2006. XM is scheduled to report results Monday, followed by Sirius Tuesday.
The reports could shore up the case for a deal, as Sirius Chief Executive Mel Karmazin and XM Chairman Gary Parsons seek to convince regulators that their companies have to compete with products such as the iPod, Internet-based music, AM and FM radio and new technology such as HD radio."A slowdown could be seen to demonstrate their lack of pricing power because of alternative ways of getting audio entertainment and information," said Blair Levin, a Washington-based media policy analyst for Stifel Nicolaus & Co.
Another way to look at it is that both companies are such dodos that they both might file Chapter 11 before even making it to the table to begin negotiating the merger. In fact, there are strong economic incentives for both companies to limp across the finish line to a merger before going belly up together. Think of the cost savings of only having to pay for one set of lawyers, one accounting firm, and one bankruptcy trustee!
Monday, February 26, 2007
XM and Sirius already taking a nosedive without yet merging!
Posted by Lee_D at 8:02:00 a.m.
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"In-Stat: Digital Radio Set to Take Off"
"In 2006, 73 percent of respondents to an In-Stat U.S. consumer survey were aware of HD Radio on some level."
http://beradio.com/eyeoniboc/instat-digital-radio-set/
"Sirius, XM, and HD: Consumer interest reality check" (Alexaholic)
"While interest in satellite radio is diminishing, interest in HD shows no signs of a pulse."
http://www.hear2.com/2007/02/sirius_xm_and_h.html#comments
This just confirms, the lack of interest for HD Radio, on Google Trends:
http://www.google.com/trends?q=%22hd+radio%22%2C+xm%2C+sirius&ctab=0&geo=all&date=all
"Rethinking AM's Future"
"Only 175 or so AM stations have even licensed AM-HD. For a number of reasons, quite a few have tried it and taken it off the air, or so the anecdotal evidence suggests. Ibiquity no longer reports in its public summaries whether a station is on the air."
http://www.rwonline.com/pages/s.0044/t.557.html
For now, HD Radio/IBOC is dead.
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