Sirius and XM Plan A La Carte Services

By Geoff Duncan
July 23, 2007

Satellite radio operators Sirius and XM plan to offer a la carte programming offerings - provided the FCC lets the companies' merger go through.

Where the satellite radio industry used to be a-buzz with releases, new products, news of exclusive content deals, and announcements that one company or another had a new partnership with one vehicle maker or another, since the two competing satellite operators Sirius and XM announced plans for a $13 billion merger back in February, the industry has mostly been holding its breath. Would the FCC approve the merger of the only two companies operating satellite radio franchises in the United States? On the face of it, it would seem that going from two satellite radio providers to one would be bad for consumer choice, but the companies themselves argue their competition isn't in the satellite radio arena: it's mobile phone operators, portable media, and the Internet.

"We think this is going to be great for consumers and great for our business," said Gary Parsons, Chairman of XM Satellite Radio, in a statement. "From the day this transaction was announced, we promised that the merger would enable us to deliver more choices and lower prices for consumers. In our filing tomorrow with the FCC, we will offer detailed plans regarding how we will achieve those goals. These plans will further demonstrate why this merger is overwhelmingly good for consumers and in the public interest."

The companies are sticking to their previously stated goals of having the merger completed by late 2007.