Sirius, XM Merger Gets FCC Approval
Multiple readers, including koavf, have written to tell us the FCC has finally approved the Sirius-XM merger that has been in the works for quite a while now. CNN has picked up AP coverage as well. We discussed approval of the merger by the Justice Department a few months ago. From CNN:
"The Federal Communications Commission voted 3-2 to approve the buyout, with the tiebreaker coming Friday night from Republican commissioner Deborah Taylor Tate. Tate had insisted that the companies settle charges that they violated FCC rules before she would approve the deal. The companies agreed this week to pay $19.7 million to the U.S. Treasury for violations related to radio receivers and ground-based signal repeaters. FCC Chairman Kevin Martin confirmed the final vote Friday night. 'I think it's going to be, in the end, a good thing for consumers and be in the public interest,' he told The Associated Press."
Of course, the merger comes with strict conditions to keep things in the public interest.
Conditions like the conditions XM and Sirius were originally given when they were granted space on the spectrum. Conditions such as "these two companies may never, ever be allowed to merge".
NO CARRIER
Wait, the FCC did something good?
How could a single, monopolistic provider of a service, nationwide, be "a good thing for consumers and be in the public interest" ????
Has Orwellian doublespeak progressed so far??
See kids, this is why you shouldn't say "first post", even if you think you are...
When I think of satellite radio, I think of this:
*Major genres unrepresented.
*Station playlists that would become predictable within a week.
*Sub-genres within all genres utterly unrepresented in general (for example, one Metal station on all of Sirius, and it only plays death metal).
*A whole slew of stations essentially devoted to playing the exact same stuff that you hear on standard Top 40 radio.
*Commercials, despite being advertised as commercial-free.
*Annoying DJs (the receivers display the name/artist playing, you do NOT need DJs trying to be funny between every song).
*Oh, and a monthly fee on top of that.
Frankly, satellite radio was created 10 years too late. Why should I put up with satellite radio when I can use my mp3 player?
http://www.siriusmerger.com/
http://www.siriusmerger.com/uploads/ala-cart-Press-Rel-7-23-07.pdf
In the beginning, there were a lot more ads on satellite radio. One of the two companies (I forget which) decided to focus on ad-free music channels; amazingly, the other company reduced the number of channels with ads as well. Post-merger, I'm concerned that Big Satellite (B.S.) will finally take aim at the terrestrial market. With only one satellite service type, how long until we see automobiles that come with a free B.S. receiver but the terrestrial receiver (AM/FM) costs extra? To me, though, it comes down to the apparent difference between Republican and Democratic oversight: Republicans reject regulations unless a direct fault can be seen (well, satellite competes with terrestrial, so it's not a monopoly) whereas Democrats demand regulations unless a direct fault can be guaranteed not to happen (well, they could become a monopoly, so forbid them from merging). I'm curious how much the FCC could "change" this decision in a year, should the executive branch return to Democratic hands.
I had considered XM radio then the merger rumors started to fly so I held back. The problem I have is supporting content I strongly dislike. I can't stand Howard Stern. Yes I know he's God to some people but it reminds me of high school and I escaped from that place a long time ago. I was thrilled when he went satellite but it did drop Sirus off the options list. Now if I get satellite period I have to help pay his over sized paycheck for being annoying. I realized most reading this are likely to be fans but he creeps me out. One of the reasons for preventing monopolies is to give you options. You get to vote with your money. My only vote left is to not financially support satellite radio and hope it goes away. Not much of a choice involved. Far more important than ala cart cable we need ala cart satellite radio. Then everyone has options. There are plenty of Sternies to keep him afloat and I can have my rock stations. I competely agree about DJs and I thought the point of Satellite was to avoid them as well as commercials? DJ are there to save a buck no matter what they claim. Their mindless chatter is cheaper than playing music. I'm stuck in Phoenix now and when I drive back to LA I notice a massive difference. Here there's at least half the air time that is DJs and commercials with little actual music. Two thirds is music in LA. If I'm paying a fee can't we have at least a handful of rock stations and not have a bloody playlist?
Sorry, someone had to do it.
You know...the one with: "The stations between the stations"? OK..never mind....
Why did the FCC only grant two satellite licences? It's not like there's limited bandwith. Now that Sirius and XM merge and the FCC still doesn't allow new satellite companies there's no competition at all.
Ultimately this will benefit the consumer. I've subscribed to both companies and my preference is for talk radio/sports. The competition for paid subscribers forced the 2 companies to continually one-up each other for exclusive content and caused problems for me when one company would win the contract from another at renewal time (nascar, baseball, etc.) At one point I had to give up programming I enjoyed listening too or pay for a second receiver with a second subscription in order to keep it.
In the last few years, I've noticed the quality of the programming has deteriorated considerably as well. Once the companies are merged, all the duplicate costs for talent, administration, customer service, etc. should be eliminated and hopefully benefit the customers with a much improved service. My understanding is that nobody will even need to buy new hardware as the channels will be combined on your existing radio.
This is not a monopoly in the sense that we cannot get similar service from another provider. If you find satellite too expensive, or don't like what they have too offer, then get rid of it and listen to terrestrial radio, or your ipod, mp3 player, etc.
What I would be more concerned about than anything else to do with this merger is the question why did this take so long to pass? Oil companies have merged in a fraction of the time with minimal resistance compared to this one!
From the post: FCC Chairman Kevin Martin confirmed the final vote Friday night. 'I think it's going to be, in the end, a good thing for consumers and be in the public interest,' he told The Associated Press."
"The greater the market share, the better it is for the customers" has never been true.
So, Mr. Martin, do you care to elaborate why this merger is in the public interest? Try hard, as it stands all your previous statements aren't good enough to fool a single slashdotter.
The problem lies in the fact that now there is no comparable competition. If the customer wants unedited, uncensored satellite radio, they have only one choice. This gives the provider greater strength in the business transaction, seemingly unlimited freedom to add or change commercials, content or programing.
This is analogous to my internet provider. Although good, I have no choice except my current one if I want a speed higher than 5mbs. No one in my area offers anything comparable. I do realize that there are other providers, but they do not have the comparable speed, hence do not receive my patronage.
When you can stream a seemingly unlimited supply of internet radio straight to most connected devices, like the iPhone for one...
satellite radio seems almost quaint. How long will it be before "internet radio" puts satellite radio totally out of business?
BTW, for iPhone and iPod touch users, here's a good place to start:
http://www.seeqpod.com/
If you just want a radio gadget, there seem to be a few good ones available now:
http://www.google.com/search?client=googlet&q=portable%20internet%20radio
Of course with these you can't play "kill your battery" using them over a 3G network... but then there's always the next thing..
Operator, give me the number for 911!
I don't necessarily agree with Stern, just adding some relevant info.
In addition to the issues others have already raised, that Satellite radio competes with other delivery forms (AM/FM, iPods, etc,) of the same basic service (music, news, etc.), what is keeping a new company from seeing an opening and starting up?
no comment
Kiss your ass goodbye.
For a long rime I could figure it out. Why would two companies, both losing hundreds of millions of dollars a year, want to merge? How does that make sense? Then I realized -- if Sirius gets XM's subscriber revenue (XM has more subscribers than Sirius) and eliminates as many XM employees as possible -- presto!! They are instantly profitable!
Tate had insisted that the companies settle charges that they violated FCC rules before she would approve the deal. The companies agreed this week to pay $19.7 million to the U.S. Treasury for violations related to radio receivers and ground-based signal repeaters.
Oh well that's different! They agreed to pay their fines! We should give them a reward for being such good little boys.
And when I go downtown to pay my speeding ticket I expect nothing less than a thank-you card and a candybar.
What's WRONG with these people?
I work for the Department of Redundancy Department.
Tate had insisted that the companies settle charges that they violated FCC rules before she would approve the deal. The companies agreed this week to pay $19.7 million to the U.S. Treasury for violations related to radio receivers and ground-based signal repeaters.
Erm... so the FCC basically held this over the companies' heads as a condition for approval? How does this differ from extortion again?
Well i don't know about anyone else. But for a while sirius and evn XM have offered lifetime instead of a monthly fee. So i got into that last year. And As far as i know with the merger I will still have my lifetime. And all packages avaible to the new company. So i'm not complaining. And if sirius still offers the lifetime as of today. i'd get it soon :)
I think it's a great thing that's happening. For everyone. And people who have satalite radio seeme xcited
Depends on how close is the substitution. If Ford was the only company making cars, and the other options were walking and horses, they'd be a monopoly. If Ford ward the only company making SUVs, but you could buy cars and minivans from other sources, it wouldn't be a monopoly in any meaningful sense of the word.
Apple is the only company making Macs, but they don't have a meaningful monopoly because you can always use a PC.
-- Support a free market in the field of government
Ok, so now we will have one Sat Radio conglomirate. There compitition is free land radio and MP3 players. What happens when once again it is not profitable, and it desides to fold. Will good ol' Uncle Sam be there to say it's ok, we have to prop them up, for the good of the people?
I'll be interested to see how this works out...
Why do they have to hand over space to niggers?
I wonder what will happen with the DirecTV/XM deal.
If both companies couldn't survive, the market has a fix for it. Whoever is weakest goes bankrupt first. Then someone buys it for pennies on the dollar, and tries again. This time, without debt, it probably undercuts the survivor, and runs them into bankruptcy too.
The second time around, both companies make money. The original shareholders of both loose everything. And the debt holders loose a lot, but not quite everything.
I know that I don't like monopolies, in general. But I'm not entirely sure that I like the way bankruptcy often plays out either.
In this case, I don't really care - it's satellite radio, not a necessity. But as a share holder... I worry when competitors of companies I invest in go under, it isn't necessarily a guranteed win in the long run.
whatever to call them...
maybe now care makers will actually put satellite radio in cars because there is only 1 company and they know they won't collapse.