Labels wary of Sirius/XM merger?

Satellite merger?A great many bluegrass fans have embraced satellite radio. In addition to each having nearly 200 channels offering a wide variety of news, music and sports, both XM and Sirius have 24/7 bluegrass music channels produced in house.

With the US Department of Justice’s approval of the proposed merger between the two satellite radio giants being announced a month ago, subscribers and music industry observers have had much to say, pro and con, about the impact such a merger might have on this relatively new medium.

Billboard and Reuters had a joint piece last week looking at how record labels view this merger, and their fears that it could eventually lead to the sort of consolidation that would eliminate any duplication of services. Though both companies insist that their goal is to maintain separate subscription services, allowing a la carte selections from the other side of the aisle, the label reps quoted in the April 20 piece by Ken Tucker don’t cherish the thought of loosing any possible exposure via satellite radio.

Brad Paul, senior VP of promotion at Rounder Records — a label whose bluegrass releases benefit from the 24/7 national exposure they get from Sirius and XM — doesn’t like the idea of one less national outlet. “If the argument were being made that it’s a good thing because I could economize my effort, heck, I’m not about economizing my efforts, I’m about having opportunities to get these artists’ music exposed to as many listeners as possible.

“Both networks offer different ways to feature and launch a new project,” Paul says. “I feel good about having both those options to go to.”

Tucker also passes along the feeling expressed by several reps that satellite radio had been responsible for breaking new artists, though none presented any concrete examples. There was some disagreement expressed, but overall, the quotes in the piece look askance at the merger.

But Kevin Herring, VP of promotion for Nashville-based Lyric Street Records, says losing XM’s Highway 16 channel or Sirius’ New Country channel wouldn’t have much of an effect on his label’s promotion efforts. “Anytime there’s less current outlets, it affects us, but I don’t see it having an overarching effect on what we do or how we do it,” he says.

Sony BMG Nashville VP of marketing Tom Baldrica says his label group has long supported both satellite services and is also not pleased with the possibility of consolidation. “One of those stations goes and it’s like losing a major-market radio station,” he says. “And it’s a major-market radio station that’s speaking to the people that value and love the music more than most. I’m not happy about that at all.”

Read the full piece online.

0 Comments
Leave a comment
Comments are open and unmoderated for our registered users, only your first comment will require approval before publication. Comments do not necessarily reflect the views of The Bluegrass Blog. Obscene, abusive, silly, or annoying remarks may be deleted, but the fact that particular comments remain on the site in no way constitutes an endorsement of their content by The Bluegrass Blog.

TrackBack URI

You must

  • Register
  • and Log in in to leave comments.

    Sirius-XM merger one step closer

    The Associated Press is reporting that FCC Chairman Kevin Martin has announced that he will recommend FCC approval of the proposed merger between the Sirius and XM satellite radio broadcasting companies. From the piece by the AP's John Dunbar: Martin made his recommendation Sunday in exchange for...

    FCC approves Sirius/XM merger

    The last barrier preventing the long proposed merger between satellite radio providers, Sirius and XM, was removed Friday night when the FCC granted approval. The merger will create one satellite provider with a combined subscriber base of 18 million. The approval does come with several conditions. The...

    SiriuX Satellite Radio?

    As you've probably heard, Sirius and XM have announced plans to merge their two companies into one larger satellite radio provider. It's still unclear at this point if regulators will allow it though. CNN Money reports that both companies will need to seek shareholder approval, and with that done...

    Satellite Radio merger in the Senate

    We've told you before about the proposed merger of the two satellite radio providers, Sirius and XM. Previously the House of Representatives had inquired into the deal, now the Senate is doing so. The main objection to the action is the creation of a monopoly resulting in increased costs for consumers. Chief...

    FCC review begins for Sirius/XM merger

    Here's an update to a story Brance discussed earlier this year - the proposed acquisition of XM Satellite Radio by Sirius Satellite Radio. The Federal Communications Commission (FCC) has begun its 180 day review period, during which public comment on the possible effects of the merger are sought....

    SiriusXM

    Monday the US Department of Justice approved the proposed merger/buyout of Sirius and XM Satellite Radio companies. The proposed merger is really a Sirius take over of XM, to the tune of $5 billion. This proposal has been in the works since the beginning of last year. The Department of Justice Antitrust...

    CRB sets royalty rates for satellite radio

    With controversy and legal action still taking place over the rates set for internet radio, the Copyright Royalty Board has fixed new rates for satellite radio services. Since there are only two satellite providers in the US, Sirius and XM are the only companies affected by the ruling. The two satellite...

    No deal – Gibson calls off merger

    The proposed merger between Gibson Guitar and TC Group which was announced in January '08 has been shelved. The two companies issued a joint press release late last week. Gibson Guitar, the world's premier musical instrument manufacturer and leader in music technology and TC Group, an international...

    Colorado Case announces merger

    Colorado Case Company has announced an agreement to purchase Cavallaro Case Covers, makers of the Small Dog Case Cover line. The merger is expected to be concluded by July 1, 2007, with the Medford, MA facilities of Cavallaro being relocated to Fort Collins, CO where Colorado Case is headquartered. Both...

    XM Satellite Radio on Direct TV

    On November 15, DIRECTV, the leading providers of digital satellite entertainment programming with 14.6 million DIRECTV customers nationwide, launches XM Satellite Radio, America's #1 satellite radio service with 5 million subscribers, on channels 801 through 879. This new partnership nearly doubles...

    Gibson to merge with TC Group

    The Tennessean, Nashville's hometown paper, ran a story yesterday (1/18) that Gibson Guitar Corp. will merge with TC Group, a Danish pro audio firm. The merger was announced at the NAMM Winter Show in California, and according to The Tennessean, the new company will remain headquartered in Nashville...

    New Time for the TimeMachine

    With the merger of Sirius and XM, some folks seem to have lost track of their favorite show, Wichita Rutherford's Grand Old Timemachine. Wichita's Timemachine has a new time slot on the combined satellite radio provider. My new time slot at SIRIUS/XM is 9 PM Eastern every Friday and then at 12...