Bridge: Consumers Believe Sat Radio Price Will Rise With Merger

Consumer interest in satellite radio has dropped, yet with a merger of the two companies, Howard Stern could potentially pick up 900,000 more listeners.
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Consumer interest in satellite radio has dropped, yet with a merger of the two companies, Howard Stern could potentially pick up 900,000 more listeners.

That’s according to Bridge Ratings, which gave a quarterly update of the satellite sector.

Thirty days into merger talk, it found, satellite radio consumers are more optimistic about the possible merger than they were when the announcement was made public, though nearly three-quarters of those interviewed expect an increase in the monthly subscription rate.

Bridge Ratings President/CEO Dave Van Dyke stated: “Data from the first three months of the year shows us that as many as 12% of XM’s current subscriber base is ‘very likely’ or ‘somewhat likely’ to listen to Howard Stern’s channel on a regular basis if given the opportunity. These are XM fans first - Stern fans second, so for them the merger would certainly bring more value to their subscription, however more than 50% of these XM subscribers expect to pay more for the privilege.”

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