There is competition
I switched to satellite radio (Sirius) in my car, and I would hate to go back to FM.
I have ten or so channels I usually listen to, but on long trips I might go through the spectrum a bit. There are good channels with good music on them. Its not perfect. The programming is very good but not great.
However, no commercials on the music stations I listen to. ESPN radio has commercials. Howard Stern has commercials (though they're really short and infrequent.) But, a) there's always something to switch to in commercials. I never go from a commercial to a commercial. b) I can see on the on-screen display which stations are on commercials and which are not.
I can listen to any NFL game. I can get notifications when scores change in anything except baseball.
Some of the music has stuff you won't find on any other radio station, except maybe some specific college radio shows. There is a classic hip hop station. There is a classic rock station (and it really is classic rock, not just Journey and Steve Miller.) And there's the BBC Radio 1.
Its worth my $10/month.
Regarding the merger, if it happens and they raise the price, I'll drop the service. Its not a utility. I don't need it, and neither does anyone else. So, let them merge. The worst case is they'll jack the price up, or add more commercials -- in which case they're out of business. I'd bet that most consumers of such a luxury item are totally sensitive to the price and quality of service. We do have alternatives. They suck, but they're alternatives.