Saving

Try Jim Cramer's Action Alerts PLUS
CLICK HERE NOW

Sirius-XM Merger Is Music to My Ears

04/02/08 - 07:19 AM EDT

Suzanne Barlyn

A greater ability to purge my radio programming of banal music and incessant advertising is music to my ears -- at almost any price.

That's why I don't need the Feds to protect me from an alleged satellite-radio monopoly.

The Justice Department's approval of the merger between Sirius Satellite Radio SIRI and XM Satellite Radio Holdings XMSR is good news.

Sure, price matters, but not nearly as much as the expanded choices for consumers -- and the empowerment to break away from commercial radio stations whose programming often borders on noise pollution.

News You Need: Sirius and XM Satellite Radio

Advertisers pay huge media conglomerates such as Clear Channel Communications -- which owns and operates more than 1,200 U.S. radio stations - to disseminate their messages across the airwaves, regardless of whether I'm interested.

I'll willingly use my cash to silence the sales pitch.

I may even have a few dollars to spare when the merger is complete. Sirius and XM have announced a variety of price plans -- several of which cost less than my present $12 monthly fee. Listeners will also be able to select a la carte channels -- an option that will make it possible for my husband and I to combine our favorite channels, without maintaining subscriptions for two separate providers.

Yes, I know. Commercial radio is free. But that doesn't matter if it gives me a headache.

The notion of advertiser-sponsored entertainment is becoming a relic from another era. As media-industry consolidation forces more stations into the hands of fewer companies, listening to commercial radio is often as painful as hearing fingernails scratch a chalkboard.

Last year, representatives from the Washington, D.C.-based National Association of Broadcasters, testified before four different Congressional committees about their concerns regarding the Sirius and XM Merger. The organization, which represents 8,300 radio stations and other broadcasters, must have been really worried about losing listeners. David K. Rehr, the organization's president and CEO, described the merger as a "government-sanctioned monopoly."

But I disagree.

Radio exists in many forms today, including free, ingenious online services, such as Pandora, whose Music Genome Project technology analyzes a database to help listeners create personal stations, based on their music preferences. The eclectic SomaFM features 13 commercial-free stations. Virgin Radio, an online, commercial, U.K pop station, even trumps the state of ad-sponsored U.S. radio. Many of the British ads and public service announcements -- such as a recent campaign about sexually transmitted diseases -- are at least brazen and provocative.

A merger between Sirius and XM -- both of which operate in the red -- will empower the combined unit to stage a more cost-efficient, united front against such formidable online competition.

NAB's anti-merger advertising campaign also describes satellite radio devices as violating FCC rules. But shouldn't broadcasters favor the use of more advanced radio devices by consumers? Perhaps NAB should advocate changing FCC rules to reflect modern technology, instead of using scare tactics.

The Sirius-XM merger deal isn't why commercial radio is in danger of failing. Media conglomerates and advertisers have only themselves to blame for airing too much noise that people don't want to hear.

And to think -- I can pay my way out of it for just $12 per month.

That sure beats driving alone in silence.




Suzanne Barlyn is a writer in Washington Crossing, Pa.

Life & Money

Saving

Go To Section Home


04/01/08
The Best Deals on Dream Colleges

Examine the list of universities in the Princeton Review's survey.


04/01/08
Dirt-Cheap Ways to Grow a Garden

Here are 10 ways for green thumbs to find free plants.


03/31/08
The Five Best Cities to Find Housing Bargains

The U.S. housing market is not pretty for most homeowners, but bargain hunters are looking around.


05/19/08
Cramer on Top Searched Stocks: Yahoo!

Yahoo! is among the most searched stocks on TheStreet.com. Here's what Cramer had to say about the stock recently.


05/17/08
Jim Cramer's Best Blogs

Catch up on his thinking on the hottest topics of the past week.


04/26/08
Coming Week: Make or Break

Investors will have to deal with a Fed meeting and another flood of earnings and economic data.


05/19/08
Top Rocket Stocks: Ensco

Ensco International and Echelon have the potential to move higher in coming days.


04/28/08
Monday's Analysts' Upgrades, Downgrades

See who made what calls.


05/19/08
Telecom Giants See a Savior in Video

The addition of video is helping telecom companies compete against cable and satellite companies.


05/19/08
Contract Expiration Tempers Oil's Rise

The June West Texas Intermediate contract reflects selling pressure ahead of Tuesday's expiration. But stocks in the sector are generally trading higher.


05/19/08
Analysts' Upgrades, Downgrades: Amazon

See who made what calls.


Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
Oil*
Gold
10 Yr
0.00%
%
%
%
Data delayed 20 min
Sign up for our FREE newsletters now.

Keep on top of the market and the critical information you need to make more profitable investing decisions.

  • Cramer's Daily Booyah!
  • Before the Bell

Privacy Policy

See All Free Newsletters

Premium Stock Ideas
Premium Products
SIRI was an Stocks Under $10 pick on 2008-04-16