XM-Sirius hopes rise
By Scott Moritz
How do you combine satellite radio’s Boardwalk and Park Place and not create a monopoly? You write some game rules that let others play along.
That’s what at least one analyst thinks is happening with the proposed merger of the XM (XMSR) and Sirius (SIRI) satellite radio services, which has been dead in the water for months. As the one-year anniversary of when it was first filed with the FCC approaches Saturday, the agency is signaling that it’s about to do something - finally.
The evidence: FCC chief Kevin Martin said on Thursday that his staff is writing proposals for a possible decision on the deal. Though he did not indicate which way the agency was leaning, he suggested that the drafts included conditions upon which the deal would be approved, according to a Reuters report. Stifel Nicolaus analyst and former regulator Blair Levin predicted in a research note Thursday that the FCC might force XM and Sirius to rent access to their broadcast networks to other companies. The two Democrats on the Commission have opposed the idea of handing sole control of the satellite radio waves to one company. But they “could be persuaded to vote for the deal if a leased-access condition were included,” Levin wrote.
Shares of the pay radio duo rose in after-hours trading Thursday (the market is closed for Good Friday). XM shares jumped 6% and Sirius rose nearly 8%.
It has been widely thought that the only way the monopoly-making deal could be approved is if there were several conditions attached to appease critics’ fears that subscription prices would rise and innovation could suffer. Forcing XM and Sirius to share the airwaves with competitors would address the problem, but that approach with the phone monopolies in the late 90s was largely a failure. Antitrust experts say it appears the Justice Department, which must also approve the deal, may be about to sign off too.
If so, it would be a surprising turnaround for XM and Sirius. From the get-go, the deal between the only two satellite radio shops appeared doomed in large part because the terms of their original airwave licenses prohibited the combination. But early on, Sirius CEO Mel Karmazin proposed new pricing plans that would give users a choice of channels from both companies. The move helped ease the FCC’s burden to prove that it wasn’t necessarily a harmful hookup for consumers. And with both companies coming to the end of a rapid subscriber growth streak and still losing money by the millions each quarter, there’s reason to think the regulators want to avoid a bankruptcy scenario.
Stay tuned, as they say.
I have BOTH XM AND Sirius for a number of reasons. I got sick and tired of saying I have to choose between one or the other so I got both. Both services are superior. If you have either one, you will never go back to listening to terrestrial radio again. The merge is WAY overdue. Frankly, the delay comes down to Howard Stern. The governemnt will not give Stern a break at all. If they got more absorbed into the War instead of this merge and the MLB steroids controversy, we all would be better off economically. The government and the FCC were all over Howard Stern when he was on terrestrial radio and this is their way of trying to silence him on both satellite platforms. It’s plain to see that Clear Channel and many other terrestrial companies are quaking their boots because ratings have declined causing layoffs and terrestrial radio downfall. Nobody wants to listen to commercials. This is why when you get satelite radio that you don’t go back to listening to terrestrial except for local news and weather. The merge is excellent news for both XM and Sirius listeners. It is NOT a monopoly folks! The NAB and terrestrial radio companies opposed this merge because it affects them directly. If you’re willing to pay for Pay Radio, you’re entitled to have no commercials. That’s why you pay 12.99 per month. My proposed solution is to create regional radio stations that can be placed on satelite radio similar to Superstations on cable. How awesome would it be to hear WCBS Newsradio in New York if you’re in your car in LA and want some New York news. CBS, Clear Channel and Citadel should negotiate with XM/Sirius and place some of their major market news and Specialty stations with commercials on a satellite tier. If you think about it, that’s the only void that XM and Sirius don’t give you. I would purchase a Tier Superstation type package that would bring me News, Talk and Music superstations from around the country.
It can also bring in revenue to those terrestrial radio stations that need it to survive.
I’ve always been against the merge because I had Sirius for 9 months, hated it, and got XM instead. I fear they will keep the Sirius junk and get rid of the good XM channels.
I just have to add, Howard Stern is the reason Sirius is even alive. Look at the subscriptions Sirius had pre and post-Stern. Google the news stories about if Sirius will catch the subscription base that XM has. The history is all there. Go see the stories about the gamble Sirius took with paying Stern. People that subscribe to XM will finally get to tune into Howard 100 and 101 will understand why he is the King of All Media. Bababooie-Bababooie-Bababooie!!
the justice department findley woke up and did the right thing. I guess they need votes. Now you got some moron SENATOR HERB KOHL trying to tell the FCC commition how to vote on the merger.
He was elected to be a senator that is what he should do and let the justice dept. do the job that they are supose to do and let me remind everyone that the facts and garantees presented are in the best interest of everyone to have this merger take place.
NOW MR. SENATOR HERB KOHL MIND YOUR BUSINNES AND TRY TO DO YOUR JOB AND KEEP YOUR NOSE OUT OF OTHER PEOPLES BUSINES DON’T YOU HAVE ANY CONFIDENCE IN THE JUSTICE DEPT? THAT IS A GREAT WAY TO LOSE RESPECT AND VOTES ALL IN THE NAME OF GREED
I have more of a question than a comment. My question is, due to the strong likelyhood of the XM/SIRIUS merger, what type of “interface/transitional” equipment will be available? I have a aftermarket cassette,cd, am/fm, “XM Ready receiver. Will there be some hardware device available that will have the capability to be able to bridge the two distinct satellite signals and receive both XM & SIRIUS satellite signals, even if the unit is deemed “XM READY or SIRIUS Satellite ready?????”
Let them go bankrupt. Maybe there will be one satellite company left, but, there will be a license left over from the bankrupt company. Then another company can form and avoid stupid decisions like paying Stern, baseball, etc. too much money.
Letting two companies merge because neither can survive with their poor business plans? Please!
Ala Carte? You can get that now! Yup, Want playboy, you have to opt in, just like Ala Carte… No merger needed.
Just think of what the merger will do! Plenty of foaming at the mouth DJ’s and commercials to better compete with terrestrial radio! What commercial free music? Don’t like it go elsewhere, oh that right, you can’t!
This is a no brainer for the consumer. We will get the best of both worlds, music talk and comedy. The more choice that is available the better. That what I like about this. I subscribe to XM and would to get sirius as well. The biggest issue I have is that will we have to buy new equipment? If we do it should be dirt cheap.
Textbook definitions of a monopoly do little to resolve the issue of a government appointed and controlled by special interest groups. It’s sickening to think that decisions in government are made with the interest of a few higher-tier and wealthier people in mind. I hope this is not the case and that these two companies are allowed to move on with their proverbial lives. It is also sickening to think that the reason for blocking the merger is due, in part, to certain groups who wouldn’t have control over what is said ‘freely’ over the airwaves.
Or maybe I’m just paranoid.
If this, in fact, a monopoly (on a luxury item) and the prices skyrocket I wouldn’t need a highschool diploma, nevermind a college degree, to realize it was bad for me and cancel my subscription…problem solved. The alternative would be to tune my radio to any of the AM/FM stations and listen for free.
Either way I’m glad that 20% of my income is being wasted on a clearly obvious solution.
DOJ approved merger, they say it’s not a monopoly they have lots of competition. Waiting on the FCC for their outcome.
This deal needs to happen. I have 3 XM radio subscriptions and 2 Sirius subscriptions. Its getting very expensive to have them all, but my husband is a driver who listens to all the sports programs and since they are separated he wants to have both. The others belong to me and the kids. A few XM channels feature commercials that I don’t care to listen to and Sirius does not edit songs which I do like. I don’t even turn on my local channels anymore.
I am an XM subscriber for 2 reasons, 1. The MLB package and 2, No paying Howard Stern one dime of my money. It was an idiotic deal they made with him. I do not wish to contribute to this bad deal making this moron one penny richer. You can make the number of subscribers on less if this deal goes through
Issue for consumers is what will happen to the companies if merger fails. Both stock prices will plumet, value of company falls. Both companies losing money. Cost to borrow operating cash increases (higher risk). Losses increase. Ablity to borrow money becomes even more expensive and difficult. The first company to fail will result in a de-facto monopoly to the surviving company (with no restrictions). Will the government provide incentives for some investor group to buy an un-profitable company just to maintain competition? What compensation will the customers of the failed company get? (if any)
It seems a primary reason these companies have survided this long has been banks and a market flush with cash to invest. The current economic conditions means investment money is getting more selective in what it invests in. SAT radio does not have an attractive ROI.
How would allowing other companies to rent air space turn this away from a monopoly(according to people who think it is one to begin with). Wouldn’t Sirius still have control of all the financials of the actual company, couldn’t they still “jack” the price up as high as they want. Ohh, i get it, we should just hand terrestrial some of the airwaves, because i definatly would pay for terrestrial radio on satellite.
Isn’t the point if you don’t like what is on Satellite, you can flip to anything, terrestrial, CD, iPod, etc…and I don’t think that there needs to be a pricing plan in order, because as crappy as terrestrial radio is, if satellite radio does have a price ceiling, and if it is exceeded then consumers will stop subscribing.
There is one part of the merger that could turn into a monopoly, and that is coverage of sports. They could essentially have “sports” packages forcing the consumer to pay a steeper price to obtain the sport that they want. But essentially each company individually could already do that(why you ask). Well, my friends, each company carries different sports, they do not compete at all in that part of the radio market. XM: Baseball vs. Sirius: Everything but baseball…XM could charge a premium for baseball, and likewise sirius could do it for nascar and football if they wanted.
A large part of Sirius subscribers are also there for the two Howard Stern stations; this is the only place on any type of radio you can hear Howard Stern. Couldn’t Sirius charge what they want for a Stern package?? Well that could happen, but then consumers would stop listening because of the other options in radio, when it comes to talk the other options are far inferior, but they are still there.
Vince,
Yes I am a subsciber for both my wife and I. Yes I am a shareholder because I love the service and believe sat radio has a future. I also convinced two of my coworkers to pick it up as well. This is the HBO/Cinemax for radio, it offers a premium product for a price…would you oppose it if as a monopoly is HBO decided to buy all those out? I doubt it… An economics degree does not impress me or anyone else on this board. Now time to tell us if you are short SIR/XM…
This deal is LONG overdue. It should include a provision that any politician or lobbyist involved in accepting money to prevent this deal under the phony guise of creating a monopoly, should do JAIL TIME. NO COMPANY IN AMERICA has ever been put thru losing major money as a percentage to their worth, as SIRI/XMSR HAVE. Enough already. Mike W.
I have Sirius because of NFL and Howard and i wouldn’t mind listening to baseball right about now!!
Please don’t make me get both Sirius and XM.
Monopoly! Shareholder! I-pod. FCC. Radio. CD player. Profit! Howard Stern! Wharton! Snakes, whistles, yo-yo’s, my grandmother riding a bicycle and a duck!
Monopoly? Are you kidding me? In my car, in addition to a Sirius unit, I have a tape deck, a 6-disc CD changer, AM, and FM radio… not to mention the option to talk to a passenger. How does that constitute a monopoly for Sirius?
I can drive to a grocery store to buy groceries. A different grocery store delivers groceries to a customers home using a van. Does this mean that the grocery store that delivers is a monopoly by the means in which the product is delivered? These are the same groceries that can be bought at a convenience store, a super store or a warehouse store. Let the merger go through!
Definition
A situation in which a single company owns all or nearly all of the market for a given type of product or service. This would happen in the case that there is a barrier to entry into the industry that allows the single company to operate without competition (for example, vast economies of scale, barriers to entry, or governmental regulation). In such an industry structure, the producer will often produce a volume that is less than the amount which would maximize social welfare.
Based on this, it sure sounds like a monopoly… And, no, commercial radio is not the same as satellite radio… And, yes, I am an XM subscriber…
As a subscriber to XM radio I am opposed to allowing the merger with Sirius. Misguided FCC policies have already allowed consolidation of the terrestrial radio and TV stations into far too few hands. Quite apart from the stifling of essential political debate, (please don’t tell me talk radio is debate, it’s more like school-yard ranting) this consolidation has driven all broadcasting down to a lowest common denominator. I long ago threw out my TV (literally), have given up on AM radio and almost given up on FM radio. If we merge XM and Sirius they will inevitably be “clear channeled” into the lowest common denominator format that now pollutes AM and FM. All we will have left is National Public Radio and, good as it can be, we need more than that.
I’m glad the FCC is taking this long .The extra time has allowed other competetors to start new business. This is apparent everyday . The egg is on the face of the FCC which should not have this much power in our “free country”. If H.Stern were not involved the merger would have been approved long ago.
The Economics Department at UPenn is located in the School of Arts and Sciences, not Wharton. The Wharton School is a business school and does not offer economics as a degree option.
It’s a shame that Vince is so retarded that he would turn a defensible position into a pissing contest because he is so insecure about his ignorance.
When XM and Sirius won their bids for the spectrum from the FCC they agreed they would not merge. Nothing has changed. Now all of the sudden they say they compete with terrestrial radio, but terrestrial radio was always there and they knew about it.
Ipod is no competition. You can’t get live sports from an Ipod.
The fact is consumers have benefited from two satellite companies. They both keep each other honest. One will not add commercials if the other one does not. They used to have commercials in their music.
For say truckers and people in rural, satellite radio the only viable radio they can get.
Again there is already an existing rule that satellite radio companies can’t merge. The governement shouldn’t have to bail out shareholders when it is harmful to the 17 million consumers that already purchaced satellite radio devices.
hey genius, where’s wharton? quick google it??? just like you did the meaning of anti-trust-ignorant…haha
that should be Vince, Haddon Heights NJ not Ed.
Sorry Ed!!!
I got Sirius 4 years ago for NFL Radio, and I love it. On the other hand, my income is such that I need to be mindful of my expenses and the $40 charge for my subscription every 3 months does at least get noticed by me.
That’s why I don’t think Sirius and XM merging will form a monopoly, because there’s only so much I’m going to pay for radio before I switch to Podcasts, traditional radio, or other means to keep myself entertained in the vehicle.
If anything, I agree with what one poster said in that all politicians are just whores of Corporate America….but disagree that they’re considering allowing this as a result of that. The current arrangement of Clear Channel and the mass media doesn’t want this, IMO…and that’s why so little has been done on deciding this.
Vince,
My opinion of Wharton just plumeted. First, my guess is that your degree came from a university that caters to the everyday American and that having money has no influence in getting into this school. Second, why do you think radio is “free”??? It is because you have to listen to the commercials and the banter of the DJ. There are certain perks in life that you get to experience when you work hard and make some $$$. Paying $12.00 a month for radio is not out of the world. It’s unfortunate that you have not been able to capitalize on your economics degree and are unable to afford this simple luxury. As for competition, there is radio, internet streaming, satellite and cable radio. In a lais a fair society you would hope that one of these forms of media would get more competetive. If not, well good for the corporation and the shareholder!!!
For those that say that it wouldn’t be a monopoly: Take a vacation, where you’re driving through an area where there is no terrestrial radio. What options are available then?
iPod/CDs? Give me a break. Radio exists because people want variety. It just isn’t feasible to buy every song available and put it on an MP3 player in the car.
What we need to do is pull our head out the sand, open our eyes and see the reality of the economic problem. The high price of oil is driving costs p on everything. We need an alternative.
Skippy, Brian, Chris your criticisms noted. Do you really think commercial free music on satellite radio is the same competitively as commercial radio with endless ads and idiotic DJ chatter? Anti-trust laws exist to protect consumers and as a consumer I would like to have commercial free radio at a reasonable price. It shouldn’t be a luxury item for the wealthy. You don’t say if you are subscribers so I think you probably just have shares in XM Sirius and wan’t your profits. How about thinking of the quality of our society as a whole? Don’t worry. Our politicians are all whores of corporate America and the FCC is sure to sell out consumers so you’ll get your greedy little profits. I have a degree in economics from Wharton so I think I know a little bit more about anti-trust laws than you geniuses.
Cramer is a boob and the US cannot control foreign countries unless we blow them up - something cowards don’t want to hear about. And for the record, OPEC is better described as an extortion ring than a monopoly.
The fact is that when they big on the bandwidth it was under the stipulation that the two companies would not merge. Both companies continue to state that they can survive on their own. So why should the government have to change the rules so they can recapute the glory of when their stocks were overpriced.
This deal does nothing for the consumer. It is not in their best interests. Again it’s not the government helping the consumer out it is about the goverment having to change the rules.
If satellite companies are losing money then: step one.. stop paying Howard Stern three quarters of a billion dollars!!
I don’t think Sirius/XM passed the high hurdle needed to change agreement they made when they purchased the spectrum. The fact is 15 million consumers bought equipment and they will be stuck with a monopoly if the merger is approved.
Consumers win when there is competition.
this would not be a monopoly you got all kinds of choices.
Now OPEC which controls the oil prices that’s a monopoly.
Talk all you want about the housing and the banking problems but what’s killing the economy is the price of OIL
THAT’S WHERE OUR POLITATIONS SHOULD BE FOCUSING ON.
OH! I FORGOT THEY HAVE VESTED INTEREST THAT ARE DIFERENT THEN OURS.
CRAMER IS SO RIGHT SOME OF THEM ARE PAID OFF.
REMEMBER WHO THEY ARE NEXT TIME WE VOTE
UNTIL A FEW MONTHS AGO, I FELT I COULD MAKE DO WITHOUT SATELLITE RADIO. BUT A RECEIVER WAS INCLUDED IN MY NEW VEHICLE, AND I WAS GIVEN FREE SERVICE FOR ONE YEAR. NOW I WANT IT AND AM WILLING TO PAY FOR IT. ACCESS TO NETWORKS LIKE CNBC WHEN I DRIVE GIVES ME INFORMATION I MIGHT OTHERWISE MISS, AND GIVES IT TO ME IN REAL TIME. THE MERGER SHOULD GO THROUGH.AND SPEAKING OF MONOPOLIES, THERE IS ONE SO HUGE THAT IT FORCES ME TO USE ONLY ONE FUEL SOURCE FOR MY VEHICLE: GASOLINE. IF GOVERNMENT IS SO CONCERNED ABOUT A SINGLE SATELLITE RADIO COMPANY AND WHAT IT COULD DO TO US VULNERABLE CONSUMERS, THEN WHY HAS IT NEGLECTED, FOR MORE THAN 30 YEARS SINCE THE FIRST GASOLINE CRISIS IN THE EARLY 1970′S, TO ENSURE OUR ENERGY INDEPENDENCE AND TO GIVE CONSUMERS MORE CHOICES REGARDING WHICH FUELS WE CAN USE TO POWER OUR VEHICLES ETC.? AND HOW MUCH TAX MONEY HAS BEEN SPENT ON DELIBERATIONS AND CONSIDERATIONS AND DELAYS AND REQUESTS. FAR MORE, I VENTURE TO SAY, THAN I MIGHT BE ASKED TO PAY FOR MY SATELLITE SUBSCRIPTION.
get a clue Vince, you’re not a bright person.
I fully agree with Chris. This is NOT a monopoly. There are so many different ways to get music that this should not be a monopoly. You have a choice to BUY it or not.approve the merger.but the only reason this has been delayed so long is because of ClearChannel’s influence in the government, GIVE IT A REST,
So xm and sirius are considered park place and boardwalk. What a joke. These two companies by themselves will be bankrupt within 5 years. Where was Mr. Mortitz when exxon mobil merger? How about the merger of whr and maytag,kenmore, etc? I don’t have to have satelite radio, but i do care about the price of gas and my laundry. Remember the difference between elastic and inelastic demand. A small minority of people listen to xm/siri, if it is park place and boardwalk then why arent truly the intelligent walk street bankers, investors lining up to buy the companies ;because the risk is too high and reward is small.
Anyone who thinks this is a monopoly has no idea what they’re talking about. Sat radio is a content provider, like a TV network, or a website. If they raise their prices, people will get their content from somewhere else. No one is forced to listed to Sat radio.
Shame on Washington for holding up the merger.
The Sirius/XM merger has now taken longer than both the merger of Exxon Mobil and Whirlpool with Maytag. Despite four hearings on the matter, Congress is no closer to a decision on the matter. Sirius and XM have pledged to give Congress everything they’ve asked for, including a la carte pricing options. Satellite radio has competition from both terrestrial radio as well as from Apple’s IPods and other MP3 players. “The blame rests squarely on the members of Congress,” Cramer asserted, adding many in Congress accepted campaign contributions from the National Association of Broadcasters, who represent terrestrial radio and oppose the merger. “This raises eyebrows,” Jim Cramer told viewers on his “Mad Money” TV show. “Terrestrial radio is holding onto their dying business model and just won’t let go,” he said.
He further brought up that the campaign contributions from Terrestrial Radio to key members of Congress may have something to do with the delay.
Meanwhile, both companies are losing millions of dollars each quarter.
If anyone is interested in signing the on-line petition for the SIRI/XMSR Merger can go to http://blog.earningsresearch.com - The petition is going to Congressman Green and to the FCC c/o Martin. The 300 names on the currnt one will be included with existing petitions that have nearly 3000 names.
What I find annoying is how the government takes on the superfical role of the “Great Protector.” Who’s going to save us simple-minded folk from being raped by the big, bad SAT Radio company if the government doesn’t step in? Here’s a revolutionary idea: if the price goes too high, don’t buy it. It’s not like we’ll all starve if we don’t get SAT Radio. I mean, seriously??!! I’m so done with the government thinking they can control industries more efficiently than a free market.
No surprise the Democrats are the ones behind the hold up - the most egotistical people on the planet are the ones who think they’re smarter than the free market.
Side Note: Why do Dems fawn over Open Source (a free market model), but can’t stand an economy built on the same principles? I wonder what Linux would look like if the Government controled it? Let’s call it “Osamux” and apply those valuable communist ideas and see how far it goes.
how did you get this jobits got to besome kind of payola,as you are an idiot
the agengys are wasting their time and money. Just approve this deal many people have lost a lot of money waiting for there decision. help out the small people and approve now.
Com’on people. This is not a monopoly, never has been - never will be.
How many choices do you have for music, news and talk?
It’s not complicated, it’s political.
This delay is non-sense, and ‘we the people’ should be outraged with our gov’t.
But fear not - this deal will go through. The clowns at the DOJ and FCC have very little - if any - legal justification to stop it.
Of course it isn’t a monopoly, but what the stupid FCC, which is the dumbest government commission ever, doesn’t realize if they don’t approve the merger XM is going to go bankrupt and there will be only 1 company anyway. It still baffles me that they allow Mobil & Exxon to merge and Texaco & Shell to merge with NO hearings but are fighting over a dumb luxury item. Go figure.
What’s in it for the consumer? It’s not like they’re going to combine the bandwidth and put in on one radio. So if they are giving bandwidth away to a third party that means LESS programming than we’re getting before a merger.
Also the main thing keeping each satellite company ‘commerical free’ was each other. This merger is only for stockholders not consumers.
Definitions of Monoploy: Exclusive control by one group of the means of producing or selling a commodity or service: “Monopoly frequently … arises from government support or from collusive agreements among individuals” (Milton Friedman).
Law A right granted by a government giving exclusive control over a specified commercial activity to a single party.
A company or group having exclusive control over a commercial activity.
A commodity or service so controlled.
Exclusive possession or control: arrogantly claims to have a monopoly on the truth.
Something that is exclusively possessed or controlled: showed that scientific achievement is not a male monopoly.
Vince if Satellite radio was the only “commercial activity” to provide the public with entertainment over the radio then you would have a point. This is far from the case, this is a clear example of how a lobby influences gov’t. The justice dept and the fcc can no longer hide from the facts. Get a clue Vince!
From Wikipedia:
In Economics, monopoly (also “Pure monopoly”
exists when a specific individual or enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it. [1] Monopolies are thus characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods. [2] Alternatively (a modern and less common usage), it may be used as a verb or adjective to refer to the process (see Monopolism) by which a firm gains persistently greater market share than what is expected under perfect competition.
It would seem to me the with Terrestrial radio, Ipods and other media sources … that the condition: ” lack of viable substitute goods” discounts the monopoly argument. Furthermore, the substitute goods are FREE!
Sat radio is indeed nothing more than a convenience.
Where were you naysayers who oppose the merger when Mobil and Exxon merged?
That marriage happened faster than a drive-thru Vegas wedding and got a DoJ green light in nothing flat.
Tell me now which has the bigger impact on the consumer.
Saying that this merger is a monopoly is akin to saying that Apple has a monopoly on providing operating systems for Mac.
While technically true, nothing is stopping a consumer from buying something other than a Mac. Sure, the quality might not be as good, but how exactly is that Apple’s fault?
Satellite’s quality in terms of programming is far superior to terrestrial, but don’t punish satellite companies for it by denying the merger.
Why bother to listen to crappy music and junk news on Satellite, when you can get good quality and decent program on PBS.
Vince - again…luxury item. If they raise rates then I cancel. By your logic then as a monopoly, I will have nothing to listen to in my car except the wind. Oh wait, I’ll have 5 other choices…
Mr Moritz - your story leads me to believe that you are only writing what you hear from “regular” radio people that this merger is a monopoly. You opening line states that. How then in the 5th paragraph you say that the deal would be approved if the merged company gave access to programming to it’s “COMPETITORS”. If there are cometitors there clearly in no monopoly.
How long did it take for Exxon and Mobil to merger?? They have had more debate over this merger than they did for the Exxon/Mobil merger. Pretty scary…that they think something that only 2% of the country uses is more important then something that every family and business uses. All the politicians do not care because they do not have to pay for anything and the gas price do not effect them. Heck, Bush seemed suprised that gas might hit $4 a gallon, but what doesn’t he seemed suprised about.
Close your eyes and picture this –
• A map of the US 150 years ago or so
• Days and often WEEKS to transport horse drawn cargo or passengers via your average covered wagon; pony express; man-on-a-horse, etc….
• And then…..RAILROADS INVENTED! Suddenly a.) TONS of cargo and passengers, b.) transported GREATER distances in US, c.) in shorter times!!
• Vanderbilts and others “monopolize” this new glaringly better means of productivity (train vs horse) in our nation and stranglehold $Billions UNCHECKED.
Satellite entertainment is merely a choice of a pony among different yet similar horses in an audio entertainment market that’s an inch deep but a mile wide.
DO THE DEAL ALREADY!!!
Chris - You’re a REAL Genius to know the housing bubble would burst - gee, who’d ever thunk?
I love my XM because I can listen to MLB, CNN, and Opie and Anthony. If a pricing package proposal comes out that requires me to pay more than I am paying right now, to get the same programming, I will pay it. It might be good for the businesses, but not for consumers. That is why Monopolies are poor. Free markets are great when there is competition. When the 2 companies acquired their licenses, the stipulation was that they couldn’t merge. They agreed to this! Now they want to change the rules? People in this country can’t take responsibility any more. Everyone wants to change the rules when it doesn’t work out the way they thought. Of course the FCC screwed consumers by requiring a digital television signal. Now the only way to get an HD signal is to pay a premium price to the provider. The FCC doesn’t really care about the consumers, it is all political.
The author fails to mention that the only real reason this merger has NOT been approved is because the NAB (the trade group that represents Clear Channel, Emmis, CBS and the rest of the true monopolists) owns quite a few influential Congressmen lock, stock and barrel. Certainly enough to block and stall this merger, which is plainly good for the public at-large. With it, I’d be able to get Stern, The NFL and MLB without having to buy 2 different services.
This combined entity would not be a monopoly in the least as there’s clearly competition from iPods and awful old terrestrial radio. The NAB is fighting this because they don’t want the competition. They would love to continue foisting their awful programming on the public unencumbered by true competition.
Sadly, our government is not for sale, it’s already been bought.
It is not a monopoly. We can choose if we want the service, if they raise the price we just won’t buy it. There is tons of other media we can choose to pay for as well. The author of this column is a tool box.
I also think Sat Radio and more importantly the blog we are writing on scares the crap out of Gov’t/Bankers as the public no longer has to swallow fluff pieces. Extreme scrutiny by the blogosphere has put pressure on the MSM to return to real journalism. Who correctly predicted the housing bubble and its unwinding? Bubble blogs…years ago…not the mainstream media who reports recent history only when it is ridiculously obvious nor these “economists.” I will gladly CHOOSE to pay for the content on Sat Radio as well as contributing to blogs. Sad we need to pay for critical though and free speech.
I must say, I stopped reading this article after “How do you combine satellite radio’s Boardwalk and Park Place and not create a monopoly?” Even without rules, there is no monopoly. Blame lobbyists for traditional radio for holding this up. They are holding on to a dying business model and this is a last effort to remain rele
I agree Sirius/XM is not a monopoly. It is a convenience. Cars have radios, ipod/mp3 inputs, DVD, and now HD radio with satelite TV coming soon. Homes have the same plus internet, cable Tv and music, and dish networks. In the governments minds, maybe they should mandate automobile companies to put in cassette and 8-track players too.
How about the government stop wasting time on this deal, and work on why I am stuck with the comcast monopoly.
As an XM subscriber for over 3 years I am opposed to this merger which is an absolute monopoly. To say that commercial radio is the same competitively as satellite is simply untrue. Doesn’t anyone remember how the government allowed cable TV to be unregulated and rates were supposed to go down? FCC approval of this monopoly is just another sellout of consumers in favor of corporations that now want to be free to have monopolies. Just watch rates rise once all competion is gone.
Exactly what Chris said. I’ve been a Sirius subscriber for three years now and the only thing it competes for my time is CD’s and the ipod. Who would even listen to testicular radio anymore? The idea that this is a monopoly is insane!! Its sickening that our politicians are wasting there time on this when we’re in one of the worst economic conditions we’ve ever been in. Try focusing on the price of gas, food, shelter, heat, goods etc. before worrying about a pay radio service. This is disgraceful!
Scott Moritz is obviously a puppet of the NAB. If there ever was a monopoly, it’s the NAB, and they’re feeling the noose of emerging technology (iPod, satellite radio, CD, & flash) tightening. It’s only a matter of time before the NAB monopoly is crushed.
How can it be considered a monopoly if satellite radio accounts for approx. 2% of overall radio broadcasts. Yes, maybe it can be considered a monopoly over satellite radio but please, if consumers think prices are too high and are generally displeased they will simply cancel their memberships and listen to other outlets such as normal and/or HD radio. Let capitalism do its job and approve the merger.
I agree - it’s time the government finally approve this merger. Granted they’ve been working on other more important issues, but the only reason this has been delayed so long is because of ClearChannel’s influence in the government. Regular radio is so bad right now that I’m constantly listening to Sirius, CD’s, or NPR. That, along with Apple’s significant market share of portable listening devices and outlets, makes this a very competitive medium.
All of this delay and multiple hearings are a waste of my tax dollars. All of this is political BS. Why wouldn’t oil company mergers, etc. be as scrutinized as this “luxury item” merger? If any of the “conditions” require censorship by the FCC, XM and Sirius should definitely not sign off on this and keep fighting. It’s been a year already anyway.
I fully agree with Chris. This is NOT a monopoly. There are so many different ways to get music that this should not be a monopoly. You have a choice to BUY it or not.
For the last time…this is NOT a monopoly. I commute for one hour and I switch between flash drive/iPod/CD/Sirius, yet they don’t compete??? I don’t even listen to terres. radio anymore because its garbage. That is the real problem here. Sat Radio is a luxury item, not an essential. Its sad how our government is so blatantly being manipulated by NAB/Clear Channel….a dying industry, good riddance.
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If you are going to say FM radio and Ipods are competitors of satellite radio, you may as well say that cable television, DVDs, reading books and magazines and jerking off are competitors too. That is a ridiculous claim. We all entertain ourselves with alternatives. Satellite radio offers news, music and talk radio in one portable unit. It is a unique platform, and the two companies offer unique programming. The competition encourages development, programming and competitive price. Merging the two into a monopoly will diminish the benefits to consumers.