Jacobs Media: Merger Or No, Satellite Radio Has 'Issues'
April 21, 2008 at 8:36 AM (PT)
JACOBS MEDIA continues to dig into the results of TECH POLL IV, and one of the most interesting findings shows that satellite radio subscribership may not greatly increase as a result of the pending merger between XM and SIRIUS. Moreover, writes JACOBS, "the commitment among current subscribers to stay with either service is weak, especially if it came pre-installed in their vehicles."
Overall, half say the merger will not make a difference, while one-third don’t have enough information about it to make a judgment. While one in 10 is optimistic about the merger, an additional 6% don’t think it will be a positive. Only current XM and SIRIUS subscribers are upbeat about the coming together of the two satellite radio companies.
But the bigger issue is that many current subscribers are not committed to continuing with either XM or SIRIUS. JACOBS found that "if satellite radio came with the car or truck you purchased, or you received it as a gift, your inclination to continue the subscription is much shakier. In other words, subscription rates have been supported by giving away free samples or as part of a package. When it’s time to start writing checks, it’s hard for satellite radio to retain customers."
See the full report here.