The FCC, Congress, and the NAB Challenge Satellite Radio Merger: You Can’t Be Sirius, Folks!


As you might expect, the FCC, the NAB, and a lot of politicos are up in arms about the proposed merger of satellite radio rivals Sirius and XM. They scream, “Monopoly!” I reply, “Chill out, folks!”

This is not a life-and-death matter. Unlike a public utility, no one puts a gun to our heads and makes us buy satellite radio. If the merger results in higher prices and lower quality programming, people will cancel subscriptions and the marketplace will once again take care of itself.

Plus, when the services combine, satellite band space will be freed up as duplicate programming channels are eliminated. That will allow any company who has the $$$$$$$$$ to apply for the vacant spectrum. So it’s not a closed market.

Odd that the FCC doesn’t want this to happen, but they allow the cable TV systems to have a monopoly in each community where they operate.

Right now, both companies are beating each other up, bleeding cash, and killing their stockholders. They could both go out of business if this keeps up. If they are allowed to merge, they will be more efficient and still be able to provide listeners with a wide variety of music, talk and sports programming.

The NAB has a vested interest in killing satellite radio, but they mask their true intent by expressing concern about competition within the satellite radio business. In fact, they want less competition for their members!

And at least one other blogger agrees…

Thursday, August 2: A Fresh New Genre of TV


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