NAB calls Sirius-XM survey "loaded"

[AmpedNow]

http://www.orbitcast.com/archives/nab-c ... oaded.html

In response to the recent Sirius, XM survey on a la carte programming, the NAB has issued a statement calling the survey "loaded" and provided its own set of survey questions.

NAB Executive VP of Media Relations Dennis Wharton, said

"Sirius and XM conveniently did not ask poll participants the following:

* Do you like monopolies?
* Does competition restrain a monopolist's price-gouging?
* Should government reward two companies that routinely violate FCC rules with a monopoly?
* Did you know you will have to buy a new radio that costs $200 or more to get the alleged benefits of a la carte programming?
* Did you know that Howard Stern and other 'talent' will cost consumers more – not less – under a la carte?
* Did you know that under a la carte, the per-channel price of a merged XM-Sirius will rise by 40 percent to 188 percent?"

Thank goodness we have the NAB to be champions of unbiased public opinion surveys.

Okay, I'll bite.

* Do you like monopolies?

Pertaining to what?

I'm not limited to only satellite radio for listening choices. I use mp3s, internet radio, and terrestrial just as much.

* Does competition restrain a monopolist's price-gouging?

Rhetorical. The overall marketplace will keep prices in check. Almost nobody (myself included) would keep satellite radio if the decide to double the rates as soon as they merge.

* Should government reward two companies that routinely violate FCC rules with a monopoly?

Glass houses.

* Did you know you will have to buy a new radio that costs $200 or more to get the alleged benefits of a la carte programming?

Patently false. Existing radios will be capable of al la carte programming within their service. And I'm sure that the first dual-band radios will have a price point of under $200.

"Alleged benefits"? wtf?

* Did you know that Howard Stern and other 'talent' will cost consumers more – not less – under a la carte?

Not true.

If you already have XM/Sirius, and do not desire any programming changes, then nothing will change. You will receive the current service at the current price.

Also, getting the complete lineup of both services will cost no more than $19.95, as compared to $25.90 presently with two separate radios.

Gotta love the 'talent' dig. It's getting personal.

* Did you know that under a la carte, the per-channel price of a merged XM-Sirius will rise by 40 percent to 188 percent?"

How do they come up with these numbers?

This may be true if you pick and choose every single channel you want. But my guess is that 99% of all subs will pick some sort of package deal, for the sake of convenience and variety. Most will likely keep what they presently have.


I don't blame the NAB for doing what they do. It's their job. But the blatant misinformation and hollow arguments regarding this merger are pretty sad.

I'm still betting on approval.

[Hoosier Daddy]

But the blatant misinformation and hollow arguments regarding this merger are pretty sad.

The hallmark of lobbying by the NAB.

I'm still betting on approval.

Me too.

Good article. Thanks!

[Big Media]

If you already have XM/Sirius, and do not desire any programming changes, then nothing will change. You will receive the current service at the current price.

Also, getting the complete lineup of both services will cost no more than $19.95, as compared to $25.90 presently with two separate radios.
_____________________

This may be true if you pick and choose every single channel you want. But my guess is that 99% of all subs will pick some sort of package deal, for the sake of convenience and variety. Most will likely keep what they presently have.

First, I honestly don't care whether or not the merge. I like the idea on paper, but...

Your logic is flawed by the fact that once these two, supposedly independent channel line-ups merge under one offering, I can guaran-damn-tee you that within a year, one of two things will happen (or both).

1. The similar channels offering the same format of music will merge into one channel. This will eliminate about 40% of the total available channels (as they are today). This means that keeping what you have will not be an option. You will need a new plan.

2. The pricing structure will be designed such that it rewards customers who purchase new radios capable of dual tuning. You can keep you depleted XM or your depleted Sirius package, and pay $14.95 per month. Or you can purchase this $150 receiver, commit to 1 year of service, and get the ultimate XM/Sirius tier for only $19.95.

Remember number 1 above, the ultimate XM/Sirius tier for only $19.95 will become what you have now on either XM or Sirius (the pre-merger package).

Look back at the DirectTV/USB merger, the various cable system mergers , and even some of the wireless mergers. In all cases, customers were told that their old packages and price plans would continue to be available.

Then channels got dropped or moved into a different tier and wireless plans changed. Suddenly, if you wanted any channels at all, or any wireless minutes, you had to buy in to the master's package.

[AmpedNow]

If you already have XM/Sirius, and do not desire any programming changes, then nothing will change. You will receive the current service at the current price.

Also, getting the complete lineup of both services will cost no more than $19.95, as compared to $25.90 presently with two separate radios.
_____________________

This may be true if you pick and choose every single channel you want. But my guess is that 99% of all subs will pick some sort of package deal, for the sake of convenience and variety. Most will likely keep what they presently have.

First, I honestly don't care whether or not the merge. I like the idea on paper, but...

Your logic is flawed by the fact that once these two, supposedly independent channel line-ups merge under one offering, I can guaran-damn-tee you that within a year, one of two things will happen (or both).

1. The similar channels offering the same format of music will merge into one channel. This will eliminate about 40% of the total available channels (as they are today). This means that keeping what you have will not be an option. You will need a new plan.

2. The pricing structure will be designed such that it rewards customers who purchase new radios capable of dual tuning. You can keep you depleted XM or your depleted Sirius package, and pay $14.95 per month. Or you can purchase this $150 receiver, commit to 1 year of service, and get the ultimate XM/Sirius tier for only $19.95.

Remember number 1 above, the ultimate XM/Sirius tier for only $19.95 will become what you have now on either XM or Sirius (the pre-merger package).

Look back at the DirectTV/USB merger, the various cable system mergers , and even some of the wireless mergers. In all cases, customers were told that their old packages and price plans would continue to be available.

Then channels got dropped or moved into a different tier and wireless plans changed. Suddenly, if you wanted any channels at all, or any wireless minutes, you had to buy in to the master's package.

You're probably right about the redundant channels getting shitcanned eventually. I've thought about that, too...

The big argument will be over whose channels survive the merge... Sirius will probably win out with the contemporary/decades channels, with XM supplying the niche/deep cuts channels. At least that makes sense to me...

We're also not considering all of the potential new post-merger channels they might make available on both services, keeping both format approaches in mind.

It really doesn't matter much to me, though... A merged company will be much stronger in the long run, IMO.

[Big Media]

On thing I will never understand about satellite radio is why are they insisting their customers pay for their receivers? It seems to me that their current subscriber numbers would double or even triple if they gave away receivers with free activation.

Most people have 10 or 15 bucks to spend on a monthly subscription service but they don't have $200 in funds available to pay for a nice receiver, home kit, activation, first month of service, etc.

I have yet to see either company do a free equipment promotion.

[Ace Purple]

I have yet to see either company do a free equipment promotion.

Sirius has periodic offerings of free equipment with activation, but only for existing subscribers adding an additional receiver to his or her account.

[AmpedNow]

It never made that much sense to me, either... Surely, they could do better deals on some of the 'entry level' receivers, such as the Sirius One and the XM Roady, at least.

Or, maybe they could have a similar sales pitch like the cellular companies, and give them away for 'free', or at a greatly reduced price for a time contract.

Don't forget that a substantial chunk of the audience has the service factory installed, with no need for extra receivers.

If the merger is approved, I do expect major strategy shifts in virtually everything, including sales and marketing.