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In an effort to bolster public support for their proposed merger, satellite radio providers XM and Sirius announced today that they could offer a la carte programming for reduced cost, but only if the merger is approved, and only with newly purchased receivers. I own Sirius stock, as I’ve mentioned before, so I’m a little biased on this, but the idea of truly a la carte channels is pretty cool. Of course, the fact that the two companies are saying they have to merge to provide such a service is, in my opinion, malarkey. The full story, from which the following excerpt was taken, is here:

NEW YORK (Reuters) - U.S. satellite radio providers Sirius (SIRI) and XM (XMSR) said on Monday they can offer consumers a variety of subscription packages that cost up to 46 percent less than current plans if their merger is approved.

In a bid to allay concerns among U.S. lawmakers that their merger would raise prices and limit programming choices, the two companies announced several new packages that they say offer consumers more choice than they can individually.

Under one package, customers can pick 50 channels on either XM Satellite Radio Holdings Inc.’s or Sirius Satellite Radio Inc.’s systems for $6.99 a month. Additional channels can be added for 25 cents each.

Currently, subscribers pay about $13 a month for more than 100 stations on either XM’s or Sirius’ systems.

“We need to build the subscription business base of satellite radio to strengthen our business and better leverage our high fixed costs,” Sirius Chief Executive Mel Karmazin said in a speech in Washington. “We are confident that a lower price point (and) more programming choices will help us do just that.”

Karmazin said he hoped the lower price would spur growth in the nascent satellite radio business as it competes with digital music players, video games and traditional radio for consumers’ attention and funds.

The XM-Sirius deal, which would combine the only two providers of satellite radio service in the United States, is currently being reviewed by both the Federal Communications Commission and antitrust authorities at the Justice Department.

The two companies, which together marked more than $1.7 billion in losses in 2006, said the new “a la carte” packages will work only on satellite radios that have yet to be sold by either company. Other packages will be available on existing satellite radios.

satellite radio, xm, sirius, merger, a la carte, programming