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XM Satellite Radio Holdings announced double-digit growth in revenues and its subscriber base despite Congressional foot-dragging in regard to its potential merger with rival Sirius Satellite Radio. The company's revenues increased 22 percent in 2007 to $1.1 billion, driven in large measure by its 18 percent growth in its subscriber base, to more than 9 million subscribers. The company also expanded its hardware growth, with 3.5 million XM-equipped automobiles now available, an increase of 64 percent in 2007.
Re: XM Grows Revenues, Pushes for Sirius Merger
Posted by: SteveFrunkis 2008-02-29 11:35:27 In reply to: Brad King
It is absolutely ridiculous to claim that this merger would not create a monopoly. Any claim to the contrary relies on proclaiming the existence of an absurdly broad hypothetical market segment, such as "audio entertainment", in which such a merger would not be a monopoly. The fact is that it would create a monopoly in the nationwide mobile broadcast audio segment, where there simply are no similar competing services.
Even if streaming audio via terrestrial wireless broadband internet were considered, not only will the coverage be spotty for many years to come (try rural Wyoming, for instance), but you'd be hard-pressed to find a self-contained receiver that acts anything like a radio. When I get into my car, I just want to turn on the radio and tune it to a station. If I want to change a station while driving I want to turn a knob or press a button, not have to click on a Favorites menu in a browser. Not only that, but it's hard to claim an $80 per month cellular data plan is competitive with $13 per month XM. It just isn't quite comparable. Maybe a few years from now, but not yet.
Even if streaming audio via terrestrial wireless broadband internet were considered, not only will the coverage be spotty for many years to come (try rural Wyoming, for instance), but you'd be hard-pressed to find a self-contained receiver that acts anything like a radio. When I get into my car, I just want to turn on the radio and tune it to a station. If I want to change a station while driving I want to turn a knob or press a button, not have to click on a Favorites menu in a browser. Not only that, but it's hard to claim an $80 per month cellular data plan is competitive with $13 per month XM. It just isn't quite comparable. Maybe a few years from now, but not yet.
