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Old 02-23-2007, 11:58 AM   #1
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Dear XM Radio Subscriber:

We want to share with you some exciting news: Yesterday, in Washington DC, we announced XM Radio will be merging with Sirius Satellite Radio to form the premier audio entertainment service.

The merger will create a satellite radio company that will provide consumers across the country with more and better premium radio programming. The combined company will be able to compete better in what has become a very complex and dynamic entertainment market.

Where today our exclusive contracts mean you had to choose between baseball and football or Oprah and Martha Stewart, the new company will seek to ensure that in the future, you will be able to access both companies' programming. And, once we are fully integrated, those of you who have factory-installed satellite radio will no longer be limited to the programming provided by the exclusive satellite radio service chosen by their car manufacturer.

This merger should be completed in late 2007 or early in 2008. Throughout the year, we will provide updates on how the merger is progressing and information will be available at our website, www.xmradio.com.
Between today and the merger date, as well as during the period immediately after the merger date, all of your services will remain the same. The channel lineup, the customer service number, the great music technology, and the XM Radio web site will all remain unchanged and there will be no disruption to service. But, if you have questions, information will be available and maintained on our website, and you can contact our Listener Care team at 800-XMRADIO, with questions and concerns.

XM Radio continues to be committed to providing you the highest quality audio entertainment and customer service available today. After the merger, our new company will be able to offer you the most exciting listening experience in radio.

Sincerely,

Hugh Panero
CEO, XM Satellite Radio
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Old 02-23-2007, 11:58 AM   #2
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Posted without comment.

Dear XM Radio Subscriber:

We want to share with you some exciting news: Yesterday, in Washington DC, we announced XM Radio will be merging with Sirius Satellite Radio to form the premier audio entertainment service.

The merger will create a satellite radio company that will provide consumers across the country with more and better premium radio programming. The combined company will be able to compete better in what has become a very complex and dynamic entertainment market.

Where today our exclusive contracts mean you had to choose between baseball and football or Oprah and Martha Stewart, the new company will seek to ensure that in the future, you will be able to access both companies' programming. And, once we are fully integrated, those of you who have factory-installed satellite radio will no longer be limited to the programming provided by the exclusive satellite radio service chosen by their car manufacturer.

This merger should be completed in late 2007 or early in 2008. Throughout the year, we will provide updates on how the merger is progressing and information will be available at our website, www.xmradio.com.
Between today and the merger date, as well as during the period immediately after the merger date, all of your services will remain the same. The channel lineup, the customer service number, the great music technology, and the XM Radio web site will all remain unchanged and there will be no disruption to service. But, if you have questions, information will be available and maintained on our website, and you can contact our Listener Care team at 800-XMRADIO, with questions and concerns.

XM Radio continues to be committed to providing you the highest quality audio entertainment and customer service available today. After the merger, our new company will be able to offer you the most exciting listening experience in radio.

Sincerely,

Hugh Panero
CEO, XM Satellite Radio
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Old 02-24-2007, 05:11 AM   #3
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This has been brewing for a few months now although both denied it back then. I hope it goes thru, although I do have my doubts, `cause I have XM in my car and Sirius in my truck
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Old 02-24-2007, 05:34 AM   #4
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I wonder what will happen to the pricing since there will be no competition between satellite radio providers? Since both XM and Sirius were losing money,.......

Rusty
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Old 02-24-2007, 05:49 AM   #5
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">I wonder what will happen to the pricing since there will be no competition between satellite radio providers? Since both XM and Sirius were losing money,....... </div></BLOCKQUOTE>

Rate increase? Probably not at first, as that's most likely going to be a condition of approval.
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Old 02-25-2007, 07:10 AM   #6
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Old 02-26-2007, 07:32 PM   #7
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I personally would like to see two or more companies in the market, competing for price.

I suppose, though, if the price got too crazy masses of people would go back to broadcast radio. Really, I wonder if they would make more money if it was like $5 a month... Tons more people would subscribe, with little added to their overhead.

For me, Sirius has been really nice. There are no radio stations in my area that play music that I like, and I spend a big part of my work day in a car.
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Old 02-27-2007, 06:27 AM   #8
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I never thought I'd pay for radio. I've had XM for about 10 months in both car and truck and I like it a lot, but if the price goes up I'll go back to broadcast and my cd players.
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Old 02-27-2007, 07:39 AM   #9
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Price does become an issue when we see that the competition is being "absorbed". But as TTT1953 says, there are way too many other sources out there to allow for a true momopoly.
If I wanted to start a rumor... I would say that radio would like to follow TV and offer basic and premium packages.
Just thinking out loud.

Bob and Julie
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Old 02-28-2007, 07:59 PM   #10
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When I bought my first truck that had XM, I planned to let the subscription expire when the Free part ran out.

Well I got hooked on the clear reception, music and Talk radio I wanted to listen to. I like it so much, I am adding an XM reciever to my Boat.

I hope if they merge they keep the programing I like. It is great for traveling, and much less comercials.
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Old 03-01-2007, 07:11 AM   #11
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Actually, I think the whole music industry would do better if they switched from a high margin low volume approach to low margin high volume.

If XM/Sirius was $4.95, I bet they would get 10 times the customers for the same overhead.

Same thing with CD's, if they were $4 instead of $18 I'd be much more inclined to spend money.
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Old 03-01-2007, 09:53 AM   #12
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Tuesday Feb 27 USA today, interviewed Sirius CEO Mel Karmazin.
Q: If your allowed to merge, will you use the monopoly power to rase monthly fees above the current $12.95?
A: If we want to get more than 10% of the population currently subscribing, we have to make it financially attractive, and ther are still so many people that haven't been convinced that it's worth their while to pay for radio. If we can't get more subscribers at $12.95, what would make us think that we can get more at $15.95?

Q: After the merger closed which programming from Sirius' content well be available on XM's service and vice versa?
A: What we need to do in this period of time is to work with our content partners. MOst of those contracts didn't contemplate a combination.

Q: Will you offer any programming bundles or give subscribers more choices?
A: There could be a service that would have just the kids programming and music programming and not any of the more expensive programming. Baseball, the NFL and bigger talent _ such as Howard Stern, Martha Stewart, and Oprah - could be on another sevice that maybe would be more expensive.

Q: You've talked about creating new satellite services, such as "backseat video". What's the latest with that?
A: We will have live, real-time television in the backseat of the car. And you should think kids programming. We'll give more info within the next 30 days.
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Old 03-12-2007, 07:58 AM   #13
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Indeed the money is an issue.
I think it would be smart to hook up with a friend that has XM or Sirius and get a second radio on their subscription. Their second radio is price reduced to about half. That goes for the third, fourth and fifth radio as well. Your friend is covered because they hold the reins and can "unsubscribe" you in a minute should they see the need.
We did this for our daughters when they expressed interest. Then we did it for an Aunt and Uncle (WW II vintage and on a fixed income).
Our great plan went awry when we we didn't have the heart to charge any of them. Ah well, it's a good feeling for seven bucks. lol
Bob and Julie
PS Aunt Mary complains that Uncle Walt "hogs" the radio now . That's a good sign, I guess!
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