But are consumers the real winners here? The deal still faces regulatory hurdles, including a FCC that has previously stated its opposition to such a consolidation. Given, however, that satellite radio is positioned against media such as conventional radio, HD radio, Internet radio, and of course, MP3 players and CDs, and that both companies have had significant trouble posting profits, the FCC may change its tune.
My father is an XM subscriber, and while I can’t say that he’ll be chomping at the bit to get access to Howard Stern, the broadened lineup of sports programming will certainly appeal to him. No closing date for the merger has been announced yet.