Sirius-XM merger creates questions for customers
More than 17 million satellite-radio subscribers heard about the proposed XM and Sirius merger, looked at their radios and saw expensive doorstops.
According to the companies’ proposed merger, the current radios will work for some of the new plans. Subscribers will face a new array of options, packages and prices.
On Monday, the Justice Department approved Sirius Satellite Radio Inc.’s proposed $5 billion acquisition of XM Satellite Radio. The deal, opposed by some consumer groups, was announced about a year ago.
The companies need approval from the Federal Communications Commission. Sirius and XM are looking to cut costs and boost profits.
New York-based Sirius offers more than 65 channels, including Howard Stern, Martha Stewart, Underground Garage syndicated rock music and RadioDisney. Its customer base of 8.3 million subscribers hears live play-by-play of NFL and NBA games and NASCAR races. A monthly subscription costs $12.95.
XM, headquartered in Washington, D.C., offers Oprah Winfrey, Willie Nelson and play-by-play of Major League Baseball games to more than 9 million subscribers.
Partnerships with GM, Honda, Toyota, Nissan and other auto manufacturers placed XM units in more than 140 car models for 2008. Subscribers pay between $9.99 and $12.95 per month.
Here’s a snapshot of what Sirius and XM subscribers need to know:
Q. How much will the new service cost?
A. The combined service will offer two a la carte packages. The 50-channel package allows consumers to choose either 50 Sirius or 50 XM channels for $6.99. Additional channels and premium packages will cost more.
The 100-channel a la carte option will let listeners pick 100 channels each. Sirius customers can choose some XM programs, and vice versa. This pick costs $14.99 a month.
If you want the 50-channel or 100-channel a la carte options, you’ll need a new radio. These units will be developed after the merger gains FCC approval.
Other packages will allow subscribers to keep their current units. These include XM Everything, Sirius Everything, Family Friendly, Mostly Music, and News, Sports and Talk. This allows XM customers to receive some Sirius programming, and vice versa. Cost ranges from $9.99 to $16.99 per month.
Q. Which channels will be dumped?
A. The companies don’t plan to cut any channels immediately. But similar channels will likely be combined eventually.
Q. Can satellite subscribers to the combined service get all sports?
A. Yes; just make your channel selections accordingly.
Q. How will this affect satellite radio units in cars?
A. If you bought a new car with factory-installed satellite radio, you can choose to keep it (if you don’t want an a la carte package), or get a new unit and sign up for a la carte satellite radio.
Q. How can I learn more?
A. Go to www.xmmerger.com or www.siriusmerger.com.