Sirius' Karmazin Proposes 'a la Carte' Sat Programming
Attempting to appease lawmakers still uneasy over the planned merger between XM and Sirius, CEO-designate Mel Karmazin said the company is considering offering a la carte programming options post-merger.
The comments were made both in regulatory filings with the Securities and Exchange Commission as well as during Karmazin's testimony in front of the Senate Antitrust Committee on Tuesday.
Consumers who wish to receive essentially the same programming would continue to pay $12.95 following the merger. Those not wishing to receive the full lineup would be able to select a basic package for a lower rate, while a premium package with more channels would also be added.
In addition to his comments in the filing, Karmazin said the merged entity may elect to have risqué programming removed, which would also discount the monthly bill. Previously, he had argued such an option was not possible due to technology constraints.
However, there may be another motive behind his offer: FCC chairman Kevin Martin is a big proponent of a la carte programming, and the merger requires approval by the agency.
Even with the concessions, Congress is still responding coolly to Sirius' and XM's plans. Republican Sens. Orrin Hatch of Utah and Sam Brownback of Kansas have taken Karmazin to task over what they describe as the "pornographic" nature of some of its programming.
On the Democratic side, Wisconsin Senator Herb Kohl questioned the companies' assertions that its competition is terrestrial radio and electronics devices like the iPod, and not each other.
Sirius and XM plan to release their merger plan recently submitted to the FCC publicly sometime Wednesday, a Sirius spokesperson said.