Last updated: February 21, 2008 - 6:28am
HOW RADIO LISTENERS WILL FARE IN A MERGER OF SIRIUS AND XM
[SOURCE: Wall Street Journal, AUTHOR: Lee Gomes]
[Commentary] Many consumer groups oppose the proposed merger of XM and Sirius, saying that in addition to the anticompetitive nature of any monopoly, this will be yet another instance of media consolidation. A few groups say it ought to be allowed, on the condition that the two agree in writing to certain restrictions, such as pricing and programming. Consumers themselves should be forgiven for being suspicious. The current merger request is the best evidence that a new "times have changed" rationale might be put forward three or five years hence, when the company wants to do something it was forced to promise never to do. But this argument is from the possessors of one of Washington's most potent lobbying forces. If any group is skilled in the ways of governmental largess, it's broadcasters. If you fret about diminished choices with a joined Sirius and XM, think for a second about commercial radio in the U.S. Its ownership is highly concentrated, its programming is most commonly described as "soulless" and it is missing most of the public-interest programming we used to take for granted. A radio station, after all, is but a state-approved monopoly on the public's airwaves. Remember when radio stations turned out news programs? It is said that one test of how much competition will exist after a merger is the extent to which a competitor squawks; the more complaining, the more there will be a thriving market. Judging by the decibels from the broadcasters, satellite and broadcast radio would soon be at each others' throats. What's not to like about that?
http://online.wsj.com/article/SB117504198011851139.html?mod=todays_us_marketplace
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* Bad reception for Sirius and XM
Shares of the two satellite radio firms have taken a hit since their merger plans were announced in February as Wall Street bets that a deal will not get approved.
http://money.cnn.com/2007/03/26/news/companies/sirius_xm/index.htm?postversion=2007032612
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