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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

The NAACP recently announced its support of the Sirius-XM satellite radio merger. The National Association for the Advancement of Colored People (yes, it’s really that NAACP) said, among other things, that the merger would lower prices and increase diversity in broadcasting. Ok, maybe, but it’s still quite a stretch, guys. Here’s the article from E*TRADE:

SIRIUS/XM Welcome NAACP Support for Satellite Radio Merger
PR Newswire - June 28, 2007 3:04 PM ET

Related Quotes
Symbol Last Chg
ANCS Trade 1.25 0.00
SIRI Trade 3.03 +0.01
XMSR Trade 12.06 +0.29
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SIRIUS Satellite Radio (Nasdaq: SIRI) and XM Satellite Radio (Nasdaq: XMSR) today announced the endorsement of The National Association for the Advancement of Colored People (NAACP), the nation’s largest and most widely-recognized grassroots civil rights organization with over 400,000 members, for their pending merger.

“We are extremely pleased to enjoy the support of such a well-respected and influential organization in the African American community,” said Gary Parsons, Chairman of XM Satellite Radio and Mel Karmazin, CEO of SIRIUS Satellite Radio, in a joint statement.

In a letter to the Federal Communications Commission (FCC), NAACP Director Hilary Shelton affirmed, “We are convinced that the pending Sirius-XM merger will be a positive development for consumers. More diverse, accessible and appealing options at lower prices in satellite radio will help further expand the reach of this medium.”

Both XM and SIRIUS offer numerous music and entertainment channels of interest to the diverse taste of African-Americans. For instance, XM’s “The Power” offers thought and opinion on social, political and economic issues from an African-American perspective on the nation’s only 24/7 radio channel programmed by and for the African-American community, while SIRIUS’ “Foxxhole”, hosted by Jamie Foxx, offers exclusive 24/7 programming from Urban Comedy to radio theater.

In their letter to the FCC, the NAACP also applauded both companies for maintaining “a strong commitment to diversity” and utilizing “significant resources to recruit and retain minority talent and leadership at all levels.”

“We have no doubt that a merged satellite radio company would continue, and in fact, strengthen its commitment to diversity in employee recruitment and retention, while expanding its pool of diverse contractors and vendors,” added Shelton.

SIRIUS and XM look forward to continuing their strong working relationship with the NAACP to provide high-quality programming to an even wider audience of African-American listeners and other communities of color following the merger.

Additional information regarding the merger can be found at http://www.SIRIUSmerger.com and http://www.XMmerger.com.

sirius, xm, satellite radio, merger, xm-sirius merger, sirius-xm merger, naacp