Comments on: Sirius and XM Merger? http://www.siriusaddict.com/2007/02/20/sirius-and-xm-merger/ Satellite Radio, Apple, Movies, TV, Music, and other topics Thu, 15 Sep 2011 02:14:59 +0000 hourly 1 http://wordpress.org/?v= By: John http://www.siriusaddict.com/2007/02/20/sirius-and-xm-merger/comment-page-1/#comment-73 John Wed, 21 Feb 2007 17:05:06 +0000 http://www.siriusaddict.com/blog/2007/02/20/sirius-and-xm-merger/#comment-73 Actually, Clear Channel's stake in XM is now under 2 percent, so their stake in the company is minimal compared with 6-7 years ago. But they do own that chunk of XM's satellite bandwidth -- but only until late next year. CC also won the arbitration hearing last year that allowed them to put commercials on the four XM music channels they operate (Chs. 11, 20, 22 and 24), as well as forcing them to put Cincinnati's news-tale WLW and Nashville country FMer WSIX on their service as part of a make-good for the alleged ad revenue CC had lost since 2004. XM responded by creating four 'mirror" music channels to duplicate the CC stations, minus commercials. But the bandwidth allocation means the four CC signals have much more space than the non-commercial XM music stations and sound better as a result. But after the deal expires, the CC bandwidth goes back to XM. Those four stations, along with WLW and WSIX, will probably be yanked from the 'bird when the CC-XM contract expires. How the merged company will reallocate the bandwith remains to be seen (and I'm also not a fan of the merger, since my guess is they will end up with a their payment system like cable TV -- you get X number of channels for your basic rate, and if you want certain other channels, you're going to have to fork over a few extra dollars a month for it). Actually, Clear Channel’s stake in XM is now under 2 percent, so their stake in the company is minimal compared with 6-7 years ago. But they do own that chunk of XM’s satellite bandwidth — but only until late next year. CC also won the arbitration hearing last year that allowed them to put commercials on the four XM music channels they operate (Chs. 11, 20, 22 and 24), as well as forcing them to put Cincinnati’s news-tale WLW and Nashville country FMer WSIX on their service as part of a make-good for the alleged ad revenue CC had lost since 2004.

XM responded by creating four ‘mirror” music channels to duplicate the CC stations, minus commercials. But the bandwidth allocation means the four CC signals have much more space than the non-commercial XM music stations and sound better as a result. But after the deal expires, the CC bandwidth goes back to XM.

Those four stations, along with WLW and WSIX, will probably be yanked from the ‘bird when the CC-XM contract expires. How the merged company will reallocate the bandwith remains to be seen (and I’m also not a fan of the merger, since my guess is they will end up with a their payment system like cable TV — you get X number of channels for your basic rate, and if you want certain other channels, you’re going to have to fork over a few extra dollars a month for it).

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