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Home / WI: AG Wants XM-Sirius Radio Merger BlockedWI: AG Wants XM-Sirius Radio Merger Blocked
Last Updated on Thursday, 10 April 2008 12:31 Written by rslcpol Thursday, 10 April 2008 12:31
Wisconsin Attorney General J.B. Van Hollen wants the FCC to block a merger of the nation’s only two satellite radio companies. The U.S. Justice Department decided earlier this month to permit Sirius Satellite Radio’s proposed $5 billion buyout of rival XM Satellite Radio Holdings. The FCC still has to sign off.
Van Hollen, a Republican, sent a letter to FCC chairman Kevin Martin and Wisconsin’s congressional delegation on Monday complaining the deal would eliminate competition in the satellite radio industry, drive up prices for services and reduce channels available to Wisconsin listeners.
I don’t understand what Van Hollen is talking about. Satellite radio is only 5% of the entire radio market. The competition is from terrestrial radio which has the other 95%. A merged satellite company is going to have to do a lot to convince radio listeners that paying for their services is worth their money, considering that they can still have radio for free over the regular airwaves.
Besides, can two formats really compete in the same space? And isn’t that a bit of what we are talking about here? Consider the battle between Beta and VHS or the more recent HD DVD and Blu-Ray. Someone’s going to beat out the other in the end anyway, and then you’ll have one company to speak of. Together, these companies can broaden the satellite radio list of programming options for the consumer, given them more choice and more value.
How can this be a bad thing? And if the merged company gets it wrong? Well, that’ simple too. It’s not something that has really caught on so far, so they’ve got a lot of work ahead of themselves. And if they want to keep the listening public they are able to capture, they better do all they can to keep them listening…and paying.
I was reading the legal authority of the FCC. They actually technically could only effect the amount of band they have. Peroid. Thats it. They are in the dumps with the government for even having merger hearings in the first place. Let me put it this way. Lets say a judge declares that you must sell your car to John Doe because you promised him you would. Whatever. You go to the Department of Motor Vehicles for the transfer of title, and you have to wait till they decide if its in the publics best interests to let you sell your car to this person. Grandstanding, playing on the ingnorance of the American people, who believe me, are the worst informed people of the western culture.