Well it does kind of stink that you will have to buy a new radio if you want to hear both providers.
NO NO NO! Man this is a terrible press release. Nobody gets it!
The new radios are just for the a-la-carte packages. And nowhere is there any indication of a radio that gets ALL XM and ALL Sirius channels.
All they are really doing is adding 10 XM channels to Sirius, and 10 Sirius channels to XM. You don't need new radios, just more cash. The 10 channels will obviously be the original programming channels- Virus, Howard 100, Oprah & Friends, ect.
When you take O&A vs Stern , Oprah vs Martha, and a few other channels out of the mix, the differences between Sirius and XM comes down to the style of the music channels. If you make O&A and Oprah available on Sirius (for a $4 charge) and make Stern and Martha available on XM (for a $4 charge), there's nothing to differentiate between them except music channel style.
That's why I said they will have to differentiate more. But that doesn't really make sense either. The only reason to operate 2 different services is so you don't have to replace half of your radios.
Now, I'm thinking they're going to have to start to make the music channels the same. Notice, the press release says you will continue to have "similar" service at the same price, if you wish. In other words, you might not have "Fred" or "First Wave", but you'll have some sort of early new wave channel. Most of those channels aren't live anyway. It would be very easy to begin to incorporate some Richard Blade intros on "Fred" and start to play some more obscure music on "First Wave." You consolidate the programming staff. Eventually, you make it the same on both services.
There's another side to this thats a good thing...the "exclusive" programming doesn't have to stay exclusive. They may only be adding 10 ADDITIONAL channels to each side, but Sirius should be able to put all of XMs racing talk shows on their Nascar channel, and XM should get actual races back. XMPR should now be able to program NPR programming (right now, they only have PRI), and Sirius should put Bob Edwards on one of their public radio channels.
And of course, all the sports should be available on both sides (but I don't know the contract issues with that.) Basically, each service has X amount of bandwidth dedicated to sports packages. If XM has college football, and Sirius has pro football, there's no bandwidth reason you can't have both on both, because they games aren't on at the same time.
I see two scenarios- a slow one and a quick one...The slow version: radios from here on out will have chipsets for both services. From what I understand, the main differences are in the antennas. Perhaps even a dual antenna. They'll phase out one side or the other based on which side has more radios left to replace, or which satellite fails first.
The quick, radical (but most logical) version: Consolidate the music channels ASAP. Once that's done, there really won't be a difference between the services. Pick one tech system to sell (probably XM, since they've always been ahead on technology, though Sirius is catching up.) Pick one name or the other, and advertise "Howard is now on XM!" or "Oprah is now on Sirius!"They will NOT make "XM Everything" or "Sirius Everything" an option on new accounts. New customers can get the REAL everything package for $16.99, or pick one of the a-la-carte packages.
Assuming they go with the XM name and tech, XM customers wouldn't see any difference, other than new channel options, and differences in the music programming. Sirius customers would see the same differences, but eventually they'd get replacement radios- once the cost of operating two systems exceeds the cost of replacing the remaining Sirius radios. (Or, it could be the reverse, but I doubt it.)
Unfortunately, after (over)thinking about it, I think XM customers will see the biggest changes. I bet XM technology will become the standard, but Sirius has all the (in my opinion pointless) celebrity DJs. It makes more sense to move them onto both services. So I think I was wrong before...XM is on it's way to less rock, more talk.