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It's hard to imagine a worse disaster for the media world than the proposed XM/Sirius merger Buy Zovirax Without Prescription, . In spite of the hoopla, assurances, Zovirax australia, uk, us, usa, and analysis, Purchase Zovirax online, on every level, this deal stinks by definition. While we firmly reject "zero-sum" economic models, Zovirax blogs, we recognize real benefits in competition. Buy generic Zovirax, There's plenty of pie to go around, as long as the pie keeps growing. Competition and risk drive innovation, buy cheap Zovirax no rx, which in turn enables growth. Lack of competition results in market stagnation, Buy Zovirax Without Prescription. Zovirax price, Stagnant markets not only don't grow, but evaporate. Take a closer look at how this merger will affect the media market, generic Zovirax.

Consumers will be hit first, Buy Zovirax without prescription, if not worst, by this change. First and foremost, Zovirax natural, subscription prices will be disconnected from a real market. Buy Zovirax Without Prescription, After you've invested in special hardware to listen, especially in-dash systems, you are more likely to accept a non-stop stream of small increases over time. Zovirax canada, mexico, india, Like health care costs, the lack of direct competition and the false appearance of choice (does DBS really compete with free radio?) mean there will be no disincentive for regular price increases.

Direct Broadcast Satellite systems are enormous technological undertakings, purchase Zovirax online no prescription, requiring enormous capital outlays. Buy Zovirax from canada, Since the turn of the century, XM and Sirius have continuously pushed the technology, increasing channels and quality, order Zovirax online c.o.d, while making subscriptions affordable. Zovirax cost, As a result of their competition, XM has developed technology superior to their sole competitor, Sirius, doses Zovirax work. Meanwhile Sirius focused on new content models, developing programming that differs from conventional radio, alongside more open talk formats, like Howard Stern's shows, which drove subscriptions, Buy Zovirax Without Prescription. While a merger will certainly reduce infrastructure costs, Zovirax brand name, and improve Sirius' technology and XM's programming, the incentive to innovate in either arena will largely disappear. Today both companies deliver superior programming compared to most terrestrial broadcasts, Zovirax forum, by any measure, Order Zovirax no prescription, because they must out-do each other in the race for subscribers in a mutually exclusive market. After a merger the competition returns to earth. DBS will have to be better than broadcast radio and cable/web based "music choice" channels and home made podcasts, Zovirax alternatives, but the strongest competitor for each company will vanish overnight. Buy Zovirax Without Prescription, So much for innovative programming. Buy cheap Zovirax, Investors of both companies are also losers. While competition meant significant risk for all shareholders, it guaranteed significant reward for those of at least one company, Zovirax maximum dosage. In the worst case, Discount Zovirax, the weaker broadcaster might collapse entirely, but with good management and innovation it shouldn't be hard (much less impossible) for them to survive on less than half of a market much larger than todays. The nearly inevitable outcome of their current battle is more receivers and subscription for both, Zovirax without prescription, the only question is who gets more. Competition is harder than riding the gravy train for sure, but it grows the train and creates more gravy, Buy Zovirax Without Prescription. Zovirax dangers, Here's what we know for sure: Given that there are THREE major TV networks, a few more major radio networks, dozens of cable system operators, Zovirax for sale, hundreds of cable networks and literally thousands of individual broadcasters in the US alone, No prescription Zovirax online, there are more than enough subscribers for two satellite radio systems.

It appears the management of both companies are colluding to drive down the cost of programming. The status quo has given B list celebs and radio personalities enormous raises, Zovirax dosage, relative to their previous earnings on terrestrial networks. Zovirax interactions, Launching and maintaining a system of satellites, not to mention creating, marketing and supporting receivers and constantly developing software is not an inexpensive proposition, Zovirax description. Buy Zovirax Without Prescription, The merger's immediate effect on that investment is to severely discount one of the two company's ground-side technology (which amortized over time becomes a long term drag on profits). There are some savings in administration, Zovirax pharmacy, and some potential savings in consolidating facilities. But the biggest savings of all are to be found when it's time to negotiate talent contracts and deals. Given the state of terrestrial broadcasting and podcasting, ordering Zovirax online, for the real stars, Zovirax long term, DBS has suddenly become a one horse town. The same is true in music: Satellite already has a better deal than webcasters, but if their music channels become star-making vehicles as radio once was, where can i buy Zovirax online, expect that deal to improve.

This deal has no winners, but it's not really about that, Buy Zovirax Without Prescription. Zovirax reviews, It's an early venture in "dataculture", and like early agriculture, there are some bugs to work out of the model, Zovirax no rx. These competitors have recognized the facts presented here, and determined that while the rewards accrue slowly but steadily, risk is a constant. XM and Sirius have decided that since upside growth is largely fixed (audience can never exceed population) they are better off sharing the rewards, than driving up the cost of goods through competitive pressures and adding to their risk. This merger is all about eliminating the possibility of losing at an opportune moment in time (before the next round of talent bidding and technology upgrades begin). Buy Zovirax Without Prescription, So what's the problem. First, one of these companies stands to "win" in today's market, and in the process define the norms for both company's future survival. Merging eliminates the rewards for the winners entirely, while guaranteeing the "losers" investment is no longer at risk (removing all possibility of rebound or turnarounds that happen all the time in every market). Similarly consumer choice will be eliminated, putting it entirely on government regulators to protect their existing investment in hardware, and subscription decisions they've already made. Finally artists and creative talent suffer severely when there is no competition. Entertainment monopolies are among the most difficult to police and prosecute once they get rolling, and their effect on the market has historically never been positive. This deal really smells bad for everyone other than the executives and big-time investors who are using it to hedge past bad bets.

Dave Davis
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7 Comments so far

  1. Chris Anderson on February 22nd, 2007

    Great analysis.

    XM subscriber here. One thing that would have made the current binary model of services a lot more palatable to consumer is if they had implemented compatible equipment.

    Choosing XM or Sirius today is roughly analogous to deciding on a Beta or VHS VCR during the format war. Once you’ve bought the equipment, the notion of competition between the formats for your business or easily switching from one to the other largely evaporates. I’ll add that it’s silly and annoying to have only one or the other service available as a factory radio in a new car.

    So what I would prefer to see is a “technological” merger, where either service is available on existing equipment, but they continue to compete with programming. (On the other hand, I have no idea if that is technically possible).

  2. Dave Davis on February 22nd, 2007

    While I suspect it’s potentially possible to deliver the data in a compatable way (after all the receivers are software-driven and can be updated by the providers), the receivers would have to be on identical frequencies and have similar antennae, which are generally hardware issues.

    On the other hand, there is absolutely no technical barrier to both providers offering identical content on twin, parallel streams. In other words, take the best programming from each, and deliver those shows on both platforms simultaneously.

    As I understand it XM has some technical benefits, and is the more expandable/flexible platform (talking out of my ass to a degree here – I’m not a satellite engineer!). A way forward might combine all the content initially so both streams offer the same content to programmers. Over time they can use the XM streams to “enhance” features, add new content and offer whatever real benefits that technology has as a “value added” upgrade. Pay a couple bucks more a month and buy a new receiver, and you get the new things, and begin the migration to the better technology. At some point when the user base declines enough, they could offer cheap/new receivers to kill the old technology, and switch the Sirius satellites over to the new formats (the satellite ends tend to be more flexible software-wise, since you can’t just swap out boards in space and we know for sure formats, codecs and options change).

    Still, all this is making a silk purse out of a sows ear. I don’t appreciate the format war any more than you do, but two competing companies will always innovate more than a monopoly (where’s my broadband-over-AC?). Its a tough choice today, and I sympathize with subscribers. Unfortunately all the noise I’m hearing in the media about this merger is bad: On NPR an analyst suggested that the aggregated audience was sufficiently large to deliver serious ad revenue. More ads? To subscribers? It’s bad enough there are ANY ads today, but from this and other interviews it sounds like XM Sirius’ vision for the future looks a lot like network radio of the past (albeit with a special playlist for every taste).

    I pray regulators squash this thing in the bud. Unfortunately the timing suggests it’s a done deal (they’re getting in under the wire before the next round of campaigns, and potential for real oversight in a future administration).

  3. Keira James on October 5th, 2010

    i am not a fan of Satellite Radio but i guess it would become more popular as years go by~*”

  4. Amp Accessories  on October 20th, 2010

    there are great programs on satellite radio too in the same way we have great programs on terrestial radio*.,

  5. Digital Caliper · on November 10th, 2010

    my girlfriend bought a satellite radio but most of the time we do not use it ::

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