This week XM and Sirius, the two satellite radio providers, closed a deal to merge both companies to equal a net value of $13billion. Both companies plan to share their specialty content, which was originally limited to each service, to all their listeners soon. This means both XM and Sirius subscribers will eventually have access to more HD commercial-free music, news, talk, entertainment, sports, traffic, and weather.
“This combination is the next logical step in the evolution of audio entertainment,” said Mel Karmazin (CEO SIRIUS Satellite Radio) “Together, our best-in-class management team and programming content will create unprecedented choice for consumers.”
Sirius currently offers 130 high definition channels while XM offers 170. Both services offer their subscribers free access to the content through the internet. At the moment the companies claim they plan to reduce the cost of the service and increase the content, however since there will only be one remaining satellite radio provider (no competition) they can increase costs all they want. Luckily, for the time being both XM and Sirius claim that monthly costs will not change and customers will not have to purchase new units to receive additional content from the other service. Neither companies have stated when the merge would be completed or when the mixed content would be available to all customers.
Links: XM Satellite Radio | Sirius Satellite Radio
Press Releases: XM Press | Sirius Press