Study confirms that consumers would have less access to programming under merged provider...
A study released today shows that a proposed merger between XM and Sirius would not allow existing satellite radio customers to have access to more programs than they have now without buying a new satellite radio.
The engineering study emphasizes the significant technical differences between the two satellite systems, which prevent Sirius radios from receiving programming from XM satellites, and vice versa. In addition, the study shows that the two satellite systems cannot be expanded to fit in more channels beyond their current level without incurring loss of audio quality.
Specifically, the study showed that:
• The bandwidths, bit rates, data structures, and digital audio coding algorithms of these two systems are completely different, making it impossible for existing, dedicated XM and Sirius transmission and reception equipment to interoperate;
• The data capacities of both the XM and Sirius systems are filled with programming and significant spare capacity is not available. Expanding the number of program offerings on either the XM or Sirius platforms through more aggressive digital compression would result in degradation of audio quality unacceptable to consumers;
• Taking a program channel from one system and adding it to the other would likely require incumbent program channels to be removed on a one-for-one basis to make room for the new program channels.
The study can be found at:
http://www.nab.org/xert/corpcomm/pressrel/releases/031607_MSW_XM_SIRI.pdf
So much for Mel's promise of more choices under a merged provider. Many of you have corresponded with us and expressed concerns that your favorite programming would be lost under a monopoly provider. Often times, subscribers programming preferences are those that cannot be found anywhere else, such as niche music formats and specialized talk programming. One can imagine that these special, unique features of satellite radio would be the first to go as they might not make the most business sense. Homogenized, monopolistic programming choices are not the hallmark of satellite radio, but they will be if competition is eradicated and the only people that Mel & Co. have to answer to is investors that will push for more commercials and commercialized programming
The engineering study emphasizes the significant technical differences between the two satellite systems, which prevent Sirius radios from receiving programming from XM satellites, and vice versa. In addition, the study shows that the two satellite systems cannot be expanded to fit in more channels beyond their current level without incurring loss of audio quality.
Specifically, the study showed that:
• The bandwidths, bit rates, data structures, and digital audio coding algorithms of these two systems are completely different, making it impossible for existing, dedicated XM and Sirius transmission and reception equipment to interoperate;
• The data capacities of both the XM and Sirius systems are filled with programming and significant spare capacity is not available. Expanding the number of program offerings on either the XM or Sirius platforms through more aggressive digital compression would result in degradation of audio quality unacceptable to consumers;
• Taking a program channel from one system and adding it to the other would likely require incumbent program channels to be removed on a one-for-one basis to make room for the new program channels.
The study can be found at:
http://www.nab.org/xert/corpcomm/pressrel/releases/031607_MSW_XM_SIRI.pdf
So much for Mel's promise of more choices under a merged provider. Many of you have corresponded with us and expressed concerns that your favorite programming would be lost under a monopoly provider. Often times, subscribers programming preferences are those that cannot be found anywhere else, such as niche music formats and specialized talk programming. One can imagine that these special, unique features of satellite radio would be the first to go as they might not make the most business sense. Homogenized, monopolistic programming choices are not the hallmark of satellite radio, but they will be if competition is eradicated and the only people that Mel & Co. have to answer to is investors that will push for more commercials and commercialized programming
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