I have three XM radios that I pay $80 every three months for. I love XM, and I do see satellite radio being around for the next 5 years and much longer. whether or not the merger happens, I don't think will hurt either company either way. If it does happen it will be good. I think they will lose a good chunk of subscriptions if they sacrifice some channels that customers listen to. Particularly the "nitch" channels. Let's be honest, it is hard to find the old time radio programs, and the 40's big band music on terrestrial radio. If they abolish channels such as those and strictly compete with terrestrial radio, then they will fail. The trick is to try and please as many people as possible with trying to keep the prices as low as they are. I know I will not pay $15 a month for a subscription until five years from now, when inflation makes my $12 I have been paying for four years already worth $15.
If the merger does not happen, then I see both companies cleaning house and getting new CEO's, and top execs, mainly because the government would at that point be forcing them to be more competitive. I don't see either company doing that on the current track they are on now. Stern did not bring in the masses as predicted, and XM proved that not everything Oprah does turns to gold. If they are to be more profitable as two satellite radio companies, they need to get more innovative with marketing, smarter with money, and educate consumers better on why Satellite radio is worth paying $12 a month for, rather than enticing them with programming.
Satellite TV did not really take off until about five years ago. It has been around since the 80's for consumers. I think the big reason why it took so long was education, and innovation. Look at how many people even today still believe that with any little drop of rain, they will lose their Signal with satellite. We all know that is not true. But the consumers had to be educated as to why satellite TV was better than cable for it to take off. I think it is the same with satellite radio.
I personally see the government not allowing this merger to happen, and we will still see two satellite radio company's. I think it is better that way. I also think that if there are two satellite radio companies, we will eventually see AM radio disappear. Just like this year we are seeing television no longer broadcasting on analog waves, AM radio will be forced off the air due to low demand and the need to emergency responders to have more freedom to use those waves.
One big variable for AM radio and satellite radio is Rush Limbaugh. He has a far more listening audience than any talk radio host at roughly 24 million a week. If he ever were to sign up with a satellite radio company, or both of them for that matter, the subscriptions would sky rocket, and AM radio would be at the beginning of the end of its life.