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This week marked the anniversary of the announcement that the satellite radio firms Sirius and XM plan to merge, yet so far the companies have not been allowed to consummate the marriage. That's because regulators are standing in the way, backed by well-heeled Washington lobbyists out to prove that ridiculous ideas still have an impact if they come with dollar-sign attachments. For instance, the National Association of Broadcasters has spent more than $4 million lobbying to convince regulators that the XM-Sirius deal would create a radio monopoly.
This woman doesn't know much about antitrust law or about radio. If this merger is approved, I will be one of the first to lobby for a new operator to compete with the merged company. The fact is neither Sirius or XM is great radio. I'd like to see somebody compete on quality and innovative programming rather than just compete on price and hype. Great radio for the people will not result from this merger. Rather a bland monopoly akin to at a Soviet department store will be more likely.
The rules were set when the service was authorized by the Govt. The companys agreed to the rules and just because they cannot make money(?) that doesn't give them the right to change the rules. Let them figure out how to make money, if in fact they are not, or fail. Just like the satellite telephone system that lost millions and when abandoned by the initial operator was picked up by others with a new business plan and is moderatly succesfull, the same will happen with satellite radio. Others will pick up the pieces and figure out how to make money and if not then the service isn't needed. I'm tired of bailing out companies that make poor business decisions. Maybe if they lowered prices or entered into a different subscription plan they might be able to make it. They probably just need a better business plan or more competent execs rather than giving them a monopoly. The consumer will benefit if they choose the former and will lose if they are given the latter.
My questions are "Do you have satellite radio? Does the antiquated notion of 'Free Radio' equal broadcast radio? Does the name 'Chrysler' and the words 'Bail-out' have any personal meaning to you? Did television kill cinema? Did the Internet kill newspapers? Is Microsoft a monopoly?"
As far as business decisions, the only mistake Sirius made was hiring Howard Stearn.
The NAB sounds like cable companies and telcos trying to keep the other from entering their protected markets. Have you seen a telephone bill lately? A cable bill? Satellite? What about all the TV content on the Internet and cell phones?
Subscription plans? Seriously, $12.95 a month is exorbitant?
As far as business decisions, the only mistake Sirius made was hiring Howard Stearn.
The NAB sounds like cable companies and telcos trying to keep the other from entering their protected markets. Have you seen a telephone bill lately? A cable bill? Satellite? What about all the TV content on the Internet and cell phones?
Subscription plans? Seriously, $12.95 a month is exorbitant?
