FCC Nixes Satellite Radio Merger

a_nonamiss writes "Doesn't look like Sirius and XM are going to merge any time soon. I'm not sure how I feel about this one. Logically, I know that competition is a good thing for consumers, and monopolies are generally only good for companies. Still, I don't like having to choose a car based on which satellite radio service comes pre-installed, or considering whether I'd rather have Howard Stern or Oprah, because there is no practical way to get both. Frankly, it's probably all this exclusivity that has caused me not to purchase either system." From the article: "Federal Communications Commission Chairman Kevin Martin told reporters after an FCC meeting that the Commission would not approve a merger between satellite radio rivals Sirius and XM Radio... When the FCC initially licensed the two satellite radio companies in 1997, there was language in the licensing barring one from acquiring control of the other... Even if the FCC were to have a change of heart..., it would still have to pass antitrust scrutiny by the Department of Justice."

Comments

Open standards

[c0d3h4x0r]

Still, I don't like having to choose a car based on which satellite radio service comes pre-installed, or considering whether I'd rather have Howard Stern or Oprah, because there is no practical way to get both.

You could solve this with a monopoly offering a single proprietary solution.

Or you could enforce that both Sirius and XM adhere to and publish an open standard, such that a single receiver device can be used to tune in both. If the FCC had balls and were ethical, that's what they'd have done.

Ever listened to satalite radio?

[raehl]

I have an XM subscription. Kills regular radio dead.

- I live near Eau Claire, Wisconsin. Needless to say, the selection of stations is not exactly the broadest. Definite XM advantage here.
- I frequently drive through areas with even LESS of a selection of stations than Eau Claire. XM is a godsend when you'd otherwise be spending hours driving through, say, Nebraska, listening to Country or Country.
- No commercials on (most) XM stations! Listening to radio is much nicer when you're not constantly interrupted with whatever the radio promotion of the week is.
- NO MORNING SHOWS! Well, actually, there are morning shows, but they don't TAKE OVER your regular radio stations and prevent you from listening to actual music.

Now, maybe you personally don't want to pay for radio. That's fine. But there is no shortage of reasons why someone would be willing to pay for the features satellite radio offers over regular broadcast stations.

Damn You, FCC!

[h4ck7h3p14n37]

I _really_ wish the FCC would stop trying to control markets and technologies. I can understand the issues with interference, but exactly how is a monopoly in a new and developing industry a bad thing for consumers? Isn't the first company providing services in a certain space a monopoly? Does that mean we shouldn't allow a company to come up with a new radio technology unless there's another company that's also doing it?

Being a monopoly is not evil in and of itself, it's when that monopoly uses its power to keep others out of the market that it becomes a problem. How exactly could a merger of Sirius and XM Radio keep others out of the market? It's not like they can prevent competitors from launching satellites, or buying bandwidth on someone else's satellite. Consumers will always be free to purchase a new receiver if need be.

Sat radio sattelite monopoly- hardly scary

[dfenstrate]

If there was a monopoly in sattelite radio.... so what?

It's an optional service. No one, by any stretch of the imagination, needs to buy sattelite radio service.

If they piss off their customers, what are the customers gonna do?

STOP PAYING THEM.

That's all. Folks will listen to free broadcast radio or cd's instead. They won't starve, they won't have to dig up a precious resource themselves, and they won't have to kill someone in the streets to get their fix.

But hey, the FCC got to flex their muscle. They must be proud.

Re:who pays for radio

[pikapp159]

If my memory is correct, I believe Sirius has about 60 commercials free channels.

" I'm amazed that anybody would shell out even a nickel for radio "

A similar argument could be made for cable or satellite television. But apparently 70+ million US cable and satellite subscribers want more TV channels then their local market provides over the air. Sure, more people enjoy television, but watching TV while commuting to work is a little dangerous not to mention illegal in many areas.

Sirius has about 135+ channels and provides a variety of different formats that are not available in my local market. I'm not a big Stern fan. I listen primarily to the dozen or so news/world/talk channels. Another thing I like is that Sirius provides two feeds (home and away) for all the NFL games.

I didn't choose Sirius over XM. The vehicle I bought new in '05 had the Siruis/Nav/CD setup and included a 12 month free subscription. When I bought it, I had no intention of continuing the service after the free 12 months. But after a year, I like it and it works for me.

People shell out money for all sorts of different things. Some want 30/5 FIOS where as others are content with dial-up. Some choose cable, some are happy with local over-the-air channels. Some choose fancy wireless data plans, and some people won't even spent money to get a cell phone. Some choose the dating scene, other choose prostitutes. Oh wait... Anyway the point is, to each his own...