Oinky Mac
02-25-07, 03:37 AM
I think enough hints have been dropped to guess how the merged service will work. First, you'll still have the traditional XM and Sirius subscribers who continue to listen on their old receivers. Not much will change for them. The prices and channels will be pretty much the same, except the channels that are obvious duplicates will be simulcast. In other words, an XM subscriber listening to the 80's channel will hear exactly the same broadcast as a Sirius subscriber listening to his/her 80's channel.
The big change will come with the new dual band receiver. It will not recognize the difference between XM and Sirius. All channels will potentially be available, but it sounds like they will be sold in packages. For instance, you could pick which music and talk channels you wanted to buy. One big advantage of the new tuner would be the ability to hook a lot more customers. Car makers would no longer have to choose one service over the other. Within a few years it's likely that every new car sold would come equipped with the new tuner. Basic subscriptions (with about 40-50 channels) could be sold for only a few dollars per month. Or you could sign up for all channels for something like $17.95/month.
If the combined company could get 40 million subscribers at an average of $10/month, that would be almost $5 billion per year in revenue!
The big change will come with the new dual band receiver. It will not recognize the difference between XM and Sirius. All channels will potentially be available, but it sounds like they will be sold in packages. For instance, you could pick which music and talk channels you wanted to buy. One big advantage of the new tuner would be the ability to hook a lot more customers. Car makers would no longer have to choose one service over the other. Within a few years it's likely that every new car sold would come equipped with the new tuner. Basic subscriptions (with about 40-50 channels) could be sold for only a few dollars per month. Or you could sign up for all channels for something like $17.95/month.
If the combined company could get 40 million subscribers at an average of $10/month, that would be almost $5 billion per year in revenue!