- Child killed, 4 injured in Idaho elementary school bus crash
- Obama downplays IRS scandal, blames Obamacare rollout on ‘outdated’ agencies
- Pregnancies decline overall, up among older women
- Pentagon plans to destroy Syrian chemical arms on ship at sea
- Paris Metro issues ‘politeness manual’ to improve passengers’ behavior
- Justin Bieber, crew detained at Australian airport in drug search
- Lee Rigby trial: Muslim who machete-hacked soldier calls it ‘humane’ kill
- GM ending Chevy sales in Europe to focus on Opel and Vauxhall
- Putin’s diplomats to U.S. busted for living high life off $1.5M bilked from Medicaid
- Happy Meal: Couple goes to McDonald’s, leaves with bag packed with cash
Letters to the Editor
Moreover, according to the companies’ most recent quarterly reports, they’re no falling stars. For Sirius, net subscribers (gross additions minus losses) increased by 556,490 year-over-year, or 9 percent, to 6.6 million, representing two-thirds of the industry’s total net additions. Revenue increased 61 percent to a “record $204 million.”
For XM, net subscribers were up 5 percent and revenue increased 22 percent. The firm boasted, “XM had its largest quarter ever in automotive gross additions with 618,000.” One problem was in the area of customer retention. While gross subscriber additions were 942,000, XM’s net additions were only 338,000. This means that for every three subscribers added, it lost two. This is bad management, but hardly justifies a merger.
Notwithstanding these boastful numbers, had the companies spent less time lobbying and more time building their business their financial situation might be less precarious than they claim. For instance, why not offer a la carte pricing and program options now, not as a bargaining chip for the merger? Because it’s easier to merge than do the hard work of business. And it’s not inconsequential that executives’ compensation is tied in large part to share-price appreciation. When management fails to grow the business, what better way to boost the stock price — and its compensation — than through a merger?
A better idea than a Sirius/XM merger into a satellite-radio monopoly would be for DirecTV and EchoStar to acquire Sirius and XM. The former have had their growth rates flatten recently as the subscription-TV market (cable and satellite) has reached 85 percent penetration, whereas, as noted, satellite-radio’s penetration is in single digits. This would allow satellite-TV firms to expand and diversify their revenue streams while retaining competition in the fledgling satellite-radio industry.
Alternatively, any merger should be conditioned on the grant to another licensee of the rights to provide satellite-radio. Though some would view this as defeating the purpose of the merger, the facts show that better business practices combined with the potential market justifies two players in this industry segment. It would also prevent the lament a few years hence of a satellite-radio monopoly.
Why such hatred toward America's freedom of religion?
- 'Hunger Games' delivers Obama's message on income inequality: liberal group
- Activists urge Obama to go rogue, sidestep Congress
- PRUDEN: British press horrified as London's new mayor dares to proclaim the truth
- Hack attack: 2 million Facebook, Twitter passwords stolen
- Inside China: Nuclear submarines capable of widespread attack on U.S.
- NAPOLITANO: Pope Francis should be saving souls, not pocketbooks
- Blast of winter weather heads to D.C. area
- GOP launches candidate training: How to talk to women
- Russian diplomats busted bilking $1.5 million from Medicaid
- CARSON: Getting to the top by starting at the bottom
Independent voices from the The Washington Times Communities
Criticism may not be agreeable, but it is necessary. It fulfills the same function as pain in the human body. It calls attention to an unhealthy state of things.
Understanding economic events with a free market explanation
John Wood illustrates a new American politics, and the path to get there.
Interviews and show reviews from the Los Angeles punk scene past and present. Los Angeles has always been rich in punk rock talent since punk rock was born.
White House pets gone wild!