XM Satellite Radio
floating a plan for price cuts, Jim Cramer said he wants people to understand what's really happening behind the scenes.
Members of Congress care about the local radio in small towns because chances are that if they are champions of local radio, they will get mentioned, Cramer explained on TheStreet.com TV's Wall Street Confidential
Web video Tuesday. In turn, if the representatives get mentioned, then it's cheap campaign exposure for them.
"All they really care about, a lot of these guys, is getting re-elected," Cramer said. "So the last thing they want to do is piss off a radio station in their town."
The radio station is "terrestrial" and they tend to be owned by a few companies, he went on. These companies, Cramer said, have asked for help against satellite radio, which they think of as a "mortal enemy."
As there is really no constituency that says people have to have satellite radio, Sirius and XM Satellite "have no defenders whatsoever in the Capitol, which is why they're willing to do the unthinkable, which is to unbundle and make it so that they can't make as much money per customer," he said.
As an XM and Sirius user, Cramer said he has 120 channels, out of which he listens to only three. "I would love to be able to, if I were penny-oriented, get rid of all but the three," he said. "I don't think I'm alone."
In addition, Cramer said his children also have pointed out that the car has an
facility. Therefore, if people have an iPod, they don't even need satellite radio, unless they forget their iPods.
"Satellite radio is not indispensable, even though they claim that it is, and their balance sheets are the balance sheets from hell," Cramer said. "So this is the death mill for these companies if they can't get together."
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click
here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click
here to order his book, "Real Money: Sane Investing in an Insane World," click
here to get his second book, "You Got Screwed!" and click
here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by
TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.