Sunday, February 25, 2007

Record Labels Weigh In On Merger

Labels weigh potential fallout of satellite merger
Sun Feb 25, 2007 7:10PM EST, By Brian Garrity, NEW YORK (Billboard)

Would a merger between XM Satellite Radio and Sirius Satellite Radio be good or bad for the music business? That's the question industry executives have been wrestling with since the two companies announced plans to combine in a $13 billion deal that creates a single satellite radio behemoth. Officially, label executives are taking a wait-and-see approach. But privately, they are debating the ramifications of the tie-up on everything from promotion opportunities to licensing revenue to existing litigation strategies. Some of the biggest question marks surround the impact of consolidation on satellite radio's role as a promotion and exposure platform. XM claimed 7.6 million subscribers at the end of 2006, while Sirius had 6 million. If the two companies are integrated, similar channels likely will be eliminated, giving the labels fewer outlets where they can promote new artists...read more: here