Make satellite radio keep competing

Larry Weil
Mon Jun 23 15:21:06 EDT 2008

Larry Weil
Lake Wobegone, NH

> -----Original Message-----
> From: 
> []
>  On Behalf Of Bill O'Neill
> Sent: Monday, June 23, 2008 2:43 PM
> To: Howard Glazer
> Cc: BRI; Don A
> Subject: Re: Make satellite radio keep competing
> Howard Glazer wrote:
> > Should the
> > merger be denied and one or both fold, will any of the established 
> > large-media companies (i.e. News Corp., Disney) even consider 
> > scavenging the remains and getting into satellite radio, or 
> will the concept just die?
> What are the odds?  What with the infrastructure and other 
> capital on the books. 
> You hit it on the head when you reference highly compensated 
> talent like Stern as albatrosses.  Not sure what the other 
> 'names' receive, e.g., Martha "Britain or Bust" Stewart, 
> Barbara Walters, etc.  More than they bring in, for certain.

Actually, the subscriptions for Sirius doubled when Stern was signed.
> Every car entering America should have been loaded with a 
> receiver that could reach either network (perhaps with some 
> firewall, etc.)

The factory radio in the 2008 Subaru has a connector on the back that can
connect to either a Sirius or an XM module, which each sell for $400 plus
installation.  It's a propriatory connector that cannot be used for anything
else other than what Suubaru sells.  Of course you could use an add-on with
an RF connection, or replace the radio with an aftermarket radio with an XM
or Sirius module added, either of which would be cheaper alternatives that
the module sold by Sirius.

> It worked for Gillette and other companies 
> to razors.  Give away the handle and then charge up the 
> blades.  And continue to get better.  As with razors, they 
> will be around as long as hair continues to grow.  I have to 
> think that satellite radio will be around as long as people 
> have ears to hear.  In 20 years we may look back on the birth 
> pangs of the industry with a chuckle.  And close shave.

If you look at the cost of the adapters and modules being sold by Best Buy
and Circuit City, it shold be obvious that the cost is being subsidized by
the satellite companies.

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