Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR) are still waiting for the FCC to give them the go-ahead to merge. Let’s try to move things along, shall we? Here’s the case for the merger, in visual form: Graphs of the services’ growth rates, measured by total subs and net adds:
These charts also serve another purpose: A warning to potential investors in a combined company. Assuming that Kevin Martin and co do eventually give the merger the go-ahead, XM and Sirius will eventually (but not immediately) be able to cut costs. But the demand curve isn’t going to change just because the two have combined.
Satellite radios are no longer selling at retail (sales are off 35% across the board), which means both Sirius and XM are relying on new car activations to fuel growth — and it’s shaping up as a bad year for Detroit. And competition for consumers’ minds and wallets only continues to increase: As you may have heard, for instance, Steve Jobs is showing off some new stuff today.
See Also: FCC Chairman Martin: Sirius-XM ‘Difficult,’ ‘Unusual’ (SIRI, XMSR)
While SIRI-XMSR Wait For FCC, Market Deteriorates
FCC: We’ll Rule On Sirius – XM By The End Of June
Sirius: FCC Delay Hurting Satellite Radio Sales