Sirius and XM the only two providers have been talking for a time about merging. Both companies have continued to lose money since their inception. In a world of Internet Radio, Podcasting, and online promotion the world is taking a huge leap from major corporations controlling the distribution of our media. The performance of these two companies is a statement to this fact.
The stock prices plainly reflect this:
Granted they are getting new subscribers, but I have since day one doubted this market. I mean, I imagine this service is perfect the traveling sales person or truck driver who may spend 8+ hours a day in their cars and tire of looking for good content and stations falling out of range. But for Joe consumer, why pay for radio when you can get it for free? If you don’t like the content, sign up for a Pandora account, make your own content, and stream it to your stereo. (it’s not that hard!)
Satellite radio is a stop gap technology, and poorly timed at that. Perhaps if they started a few years earlier and got more buy in from consumers before the mass adoption of the Internet. In a few years Internet access will be ubiquitous through our exist cellular networks or WiMax or some other not invented yet wireless technology. Not long after that we’ll begin to see stereos (and car stereos) that can stream Internet radio wirelessly. Where will the satellite radio market be when this day comes?
This of course is only my opinion, but it’s only a matter of time.