One or none
Published by StB on Thursday, April 10, 2008 at 12:36 PM.
The Wisconsin Attorney General wants the proposed merger between Sirius Satellite and XMFM to be blocked on fear that a monopoly would occur and prices would go up as services go down. Wisconsin Senator Herb Kohl boldly states the only result is a monopoly.
Well, actually there is another result. Both companies go bankrupt.
Both Sirius and XMFM had bled money like stuck pigs. Between the two of them they have lost $8 billion. Eight billion dollars lost trying to serve approximately 17 million customers. In a land of 300 million, that is roughly 5%. The companies believe they are on the cusp of making a profit. That is yet to be seen. Even an operation profit does not guarantee they will be able to survive. Unless they merge and share the overhead.
Wisconsin AG Van Holland- a Republican- fears that rural Wisconsin satellite radio users will feel the pinch. Really? Please tell me how many of the 17 million live in the hills of Wisconsin.
Shouldn't the service actually become better? XM has Major League Baseball, the PGA, and the National Hockey League. Sirius has the NFL, NBA, and NASCAR. Suddenly you have them all instead of some.
The argument of a monopoly is flat out ridiculous. For satellite radio to survice, they need to get into your home. They realize that providing service mainly to cars is not the road to profitability. Thus the boomboxes that have been developed. They need to compete with your source of music in your house. But think of all the sources of music available. The internet, your ipod, cable TV, your CDs, cassettes, and albums. There are many others places for one to listen to music and sporting events. I don't know about Senator Kohl or AG Van Hollen but I call that competition. In your home satellite radio is not the only alternative here. With the way technology changes there could be a new method of delivery next year. Besides, who says one of the cable companies may not jump into the fray with there own service?
Or you can do what I do. Listen to the radio in my car. That is still FREE! I choose not to pay for radio. Others have chosen to pay for the service. Shouldn't they be the ones that decide this matter?
Left in the hands of those in the government, we could find ourselves having no satellite radio in the future.
Well, actually there is another result. Both companies go bankrupt.
Both Sirius and XMFM had bled money like stuck pigs. Between the two of them they have lost $8 billion. Eight billion dollars lost trying to serve approximately 17 million customers. In a land of 300 million, that is roughly 5%. The companies believe they are on the cusp of making a profit. That is yet to be seen. Even an operation profit does not guarantee they will be able to survive. Unless they merge and share the overhead.
Wisconsin AG Van Holland- a Republican- fears that rural Wisconsin satellite radio users will feel the pinch. Really? Please tell me how many of the 17 million live in the hills of Wisconsin.
Shouldn't the service actually become better? XM has Major League Baseball, the PGA, and the National Hockey League. Sirius has the NFL, NBA, and NASCAR. Suddenly you have them all instead of some.
The argument of a monopoly is flat out ridiculous. For satellite radio to survice, they need to get into your home. They realize that providing service mainly to cars is not the road to profitability. Thus the boomboxes that have been developed. They need to compete with your source of music in your house. But think of all the sources of music available. The internet, your ipod, cable TV, your CDs, cassettes, and albums. There are many others places for one to listen to music and sporting events. I don't know about Senator Kohl or AG Van Hollen but I call that competition. In your home satellite radio is not the only alternative here. With the way technology changes there could be a new method of delivery next year. Besides, who says one of the cable companies may not jump into the fray with there own service?
Or you can do what I do. Listen to the radio in my car. That is still FREE! I choose not to pay for radio. Others have chosen to pay for the service. Shouldn't they be the ones that decide this matter?
Left in the hands of those in the government, we could find ourselves having no satellite radio in the future.
