Tuesday, January 30, 2007

The Merger: Never Forget.


Your computer would be so much happier this way.

The hottest news off the press in Radioland comes to us in the form of satellite radio. That's right, satellite radio is taking the forefront yet again, but in not such a big way this time around. XM Radio, which was recently reported to death in regard to the alleged merger-to-be (hint: scroll to the post at the bottom of this blog to further educate yourself), is persevering in its competition with Sirius Satellite Radio to team up with Windows for their new computer operations program. Windows Vista, which is set to make its debut tomorrow, promises to offer an assumedly glorious "music hub," complete with more than 80 channels of music through the availability of XM Satellite Radio. Windows has partnered with XM to offer Vista users a free and whopping three-day trial period and the option to continuing with the enticing opportunity by paying a subscription fee of $7.99 per month. Sounds like a deal maker, right?

Well, as much as this may be great and all for Windows shoppers, this is merely coming off as an opportunity for both Windows and XM to promote their products. What the naïve public may be unaware of is that XM already offers its services on its website if you are yearlong subscriber. With XM as a simple standalone program on the new Windows interface, each company is simply using one other to promote their own agenda and product. For Windows, XP has become the international standard for almost every computer, and since it the basic mainstay operating system for the majority of purchased computers in the world, the company has to find ways to attract attention to their new system. Their website is a prime example, with a section that lists the top 100 reasons to purchase and/or upgrade to the Vista version (need I say more?). Surprisingly, not one of those reasons has anything to do with the inclusion of an XM station. But by refraining from mentioning the joint venture, the company is clearly using the partnership as an additional way to make a buzz in the press and give the program a platform.

For XM, the intentions behind the business handshake are clear. Free ad space on every new Windows system purchased, increased subscription rates, a tantalizing three-day sucker period… The collusion is a no-brainer. But whatever happened to the merger with Sirius, and the camaraderie that was meant to be? For the past two weeks, the press has been buzzing with talk of the infamous Satellite merger, or the clash of the broadcasting titans, yet XM still seems to want to pull ahead of Sirius in a big way. With an alleged 7.63 million subscribers already cutting checks to the company, XM has been ahead of Sirius in terms of subscription rates and overall popularity, with Sirius clocking in at only 6.02 million subscribers. While talks of a deal may have been given the final nail in the coffin by the FCC, XM is using this opportunity to pull ahead of Sirius yet again, giving them a subtle blow by engaging in this "mega" opportunity.

But that's the nature of business, right? To try to squash your opponents and engage in healthy competition, both fiscally and (added bonus) emotionally? XM may be popping up on every new Windows system, but that doesn't really mean much for the company. XM requires that users have Internet access in order to use their services, but the free Internet radio that already exists makes the Satellite provider seem unimportant to the Vista system. Why pay for XM simply because it is now featured on your music hub, when you can easily log on to MySpace or any FM station's website to hear the music that you like for free? Sure, there will be a gaggle of suckers that think that there was no previous opportunity to get XM radio on their computers, but those who think that way win most likely roll in the same crowd that spends their time on vacations in the souvenir shops. For real Internet users, the online radio providers (and podcasts, just to mention) are supple means of accessing music without the added costs. $7.99 may not seem like a lot of money every month, but that amounts to almost $100 extra shoveled over to a provider per year. Is it worth it, even after you pay the $100 to $300 for the new Vista system?

That's for you to decide. Satellite radio services are designed to offer music programming that is unattainable elsewhere, and as with any product that has exclusivity in the market, there will be a dedicated mass that follows. For those intrigued - tickled even - by the idea that XM is on your new Vista system for your enjoyment, think again. XM is using this opportunity to crush their almost-was business partner, Sirius, and attempting to dominate the market as they were doing before talks of a merger. So should customers really look at this business move as a way to dominate the market? Of course. But should we be led to believe that XM is ultimately out to satisfy our media interests, rather than their business ones? That, my friend, lies in your hands. Then again, XM wouldn't be a conglomerate if they didn't bank on profits, right? So the next time you read a single article in the flurries of satellite news, just think about it. Are they trying to dupe me, or are they really trying to dupe me?

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