Arbitron is reporting that satellite radio listening is growing at what looks to be a steady pace, though its listenership pales in comparison to terrestrial radio.

According to Arbitron's latest numbers, both Sirius and XM account for 4.1% of the metro unweighted quarter hours. That's up from 3.5% in Spring 2007, and even a nicer increase from the 3.4% reported by Arbitron for the Fall 2006 survey.

In total, 6.9% of metro in-tab diaries contained satellite radio listening - that's up as well, from 5.9% in Fall 2006. Respondents also said they listened to 303 different satellite radio channels, up from 297 separate satellite radio channels in Fall 2006.

A vast majority of entries clearly identify both the service (XM or Sirius) and the channel, so Arbitron says that a satellite radio entry can be credited to a specific channel. Word has it that Arbitron will be circulating to subscribers a workup from the Fall 2006 survey that breaks out individual satellite channels, allowing a never-seen-before glimpse into how people listen to satellite radio (e.g., Howard Stern's audience, Opie & Anthony's audience, etc.).

That should make things interesting.

[Radio Online via Orbitcast Forums]

Top management from both Sirius Satellite Radio Inc.and XM Satellite Radio Holding Inc. met with the Federal Communications Commission this week according to separate ex parte filings made with the agency.

From XM, four representatives attended the meeting: Gary Parsons, Eric Logan, Mark Vendetti, and Jeff Blattner. Latham & Watkins LLP (counsel for XM) also attended the meeting. XM met with the FCC on Wednesday, September 26th.

On Sirius' side, five representatives attended the meeting: Mel Karmazin, Scott Greenstein, David Frear, Patrick Donnelly, and Terry Smith. Representatives from Wiley Rein LLP (Sirius' counsel) also attended the meeting. Sirius met with the FCC on Thursday, September 27th.

During the meeting, both XM and Sirius discussed various aspects of the satellite radio business, including the topics of subscribers and service, content and advertising, technical issues, and business relationships with automobile manufacturers and retail outlets (so pretty much... everything).

[View FCC Filings: 1, 2 (PDF) via Orbitcast Forums]

The Heritage Foundation's Edwin Meese III (Ronald Reagan Distinguished Fellow in Public Policy and Chairman of the Center for Legal and Judicial Studies), and James L. Gattuso (former FCC official) have written an article summarizing the NAB's fight against the Sirius-XM merger.

It's an endorsement for the merger, systematically debating all of terrestrial radio's points against the merger, not to mention using the NAB's own words against them (which isn't hard).

Entitled "Beyond the Fairness Doctrine: Radio’s Fight over the XM–Sirius Merger" it's a well written piece and a highly recommended read, regardless of where you stand on the merger debate.

There's a radio war going on in Washington, and this one has nothing to do with the Fairness Doctrine. Talk of re-imposing the requirement by the Federal Communications Commission (FCC) that broadcasters air opposing views on controversial topics sparked an intense and highly publicized debate this summer. Almost lost in the "fairness" furor, however, has been a second, but no less intense, radio industry battle over the merger of satellite radio providers XM and Sirius. After months of review, a ruling from the Justice Department is expected within weeks, to be followed by a decision by the FCC, which also must approve the transaction. The merger debate is different from the "fairness" debate in that it involves the structure, rather than content, of the radio industry. Like the "fairness" debate, however, the outcome could determine how Americans will listen to the radio for years to come.

Jim Gattuso, who co-authored the article, has quite the interesting background, especially with the FCC. From 1990 to 1993, he was the Deputy Chief at the FCC's Office of Plans and Policy. From May 1991 to June 1992, the FCC detailed him to the office Vice President Dan Quayle, where Gattuso served as Associate Director of the President's Council on Competitiveness.

[The Heritage Foundation]

FCC Commissioner Michael Copps expressed skepticism today about whether he would endorse the proposed merger of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

Copps, one of two Democrats on the FCC, said it would be a "steep climb" for him to cast a favorable vote because he has serious concerns about media consolidation. Copps had previously referred to the proposed Sirius-XM merger as a "steep climb" as well back in mid-April.

"Somebody's going to have to make a pretty powerful and potent demonstration that it serves the public interest," Copps said of the XM-Sirius deal.

"The parts of the (public) record that I've looked at so far have not shown me that (the deal) serves the public interest," Copps told reporters at a briefing.

Copps declined to comment on how he will vote, but said he had "very serious worries" about media consolidation in general. "I think localism, competition, diversity (in the media) have been seriously threatened." The Commissioner has historically had problems with the overall state of consolidation in U.S. media, and has expressed this vocally in the past.

[Reuters]

Contrary to more positive reports on Kevin Martin's appearance at the NAB Radio Show this morning, RadioInk is reporting that Martin has said that the FCC is considering fines against satellite radio.

Martin said the FCC's Enforcement Bureau is investigating claims that some of Sirius and XM's receivers were built to operate at levels that exceed permitted limits. Last year, both XM and Sirius halted shipments of receivers after it was learned that they were over the approved FM modulator limits.

Martin also said the FCC investigating claims that terrestrial repeaters owned by XM were operating beyond the allowed limits. XM said earlier this year that they are working with the FCC on the repeater issue (which they voluntarily lowered last year).

As a result, Martin said that the Commission is considering forfeitures against Sirius/XM for the series of violations.

(I'd personally like to hear the context in which Martin said this, because it could very well just be spin-central coming from the terrestrial radio camp. But hey, it worked, the RadioInk article made it onto the Drudge Report.)

[RadioInk]

Speaking at the NAB Radio Show this morning, FCC Chairman Kevin Martin spoke only generally about the Sirius-XM merger but said that the companies had "interesting proposals" to justify the merger and protect consumers.

During the annual FCC Breakfast, the FCC Chairman fielded several questions: from public interest questions, to changes to the EAS system, and of course, the merger between Sirius Satellite Radio Inc., and XM Satellite Radio Holdings Inc.

Martin spoke only generally about the merger, stating that the current rules prohibit both companies from merging, but said that Sirius and XM have provided "interesting proposals" stating their case.

NAB Radio Board Chairman Russ Withers asked about the NAB's concern that the satellite companies are planning to go after local revenue, but Kevin Marin noted that the companies are not prohibited from going after local ads. They just cannot insert local-only ads and material through the local terrestrial repeater network.

"I would be concerned if they were trying to become a local broadcaster," said the FCC Chairman. Martin didn't agree that local material broadcast nationally violates the local prohibition placed on the satellite companies.

[AllAccess]

It's funny what different news services choose to focus on when reporting the same situation. Thomas Barnett, assistant attorney general at the Justice Department, was asked about the Sirius-XM merger review at a congressional hearing yesterday, yet two media outlets each have an entirely different take on what was said.

The Denver Post is reporting that DOJ officials need more information to determine whether the proposed merger of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. would hurt consumers.

"I can't give you an exact time frame," Barnett told Rep. Ric Keller, at a hearing of the House Judiciary Committee's antitrust task force.

Meanwhile Reuters is reporting that the Justice Department is moving "as quickly as possible" in its antitrust review.

"We want to do that as quickly as possible, but we also want to get to the right answer," Barnett told lawmakers.

Bank of America analyst Jonathan Jacoby chose to focus on the former statement in a note issued this morning.

"The big question is what does 'more information' require for the merger process at the DOJ? Will it require more documentation from the companies or just more time by the DOJ to review the submitted documents?" wrote Jacoby. He also noted that Bank of America has not had the chance to speak with their regulatory contacts this morning.

Jacoby pointed out that while the delay could be minimal, "it could also be longer than the market would anticipate." Adding that it would likely take longer than the 15-45 days that the street is hoping on.

Bank of America's contacts put the chances of the satellite radio marriage receiving regulatory approvals before the end of 1Q08 at ~30%.

[Reuters, The Denver Post]

Fox News Radio is now offering a new on-demand service to the nearly 400 affiliates of its 5-Minute news service. This makes the Fox News Radio the first radio network to provide an On Demand service for its affiliates.

Constantly updated 24-hours daily, the service provides radio stations with On Demand newscasts - aptly called "Fox News Radio On Demand" - directly to the affiliate website. Yes, this service is only to websites.

“People today are getting their news and information not just from the radio but are also looking to the Internet for what they need,” said Kevin Magee, EVP of Fox News Radio. (Wait... people are looking to the internet for news and information?! Amazing!)

Now, this news sounds interesting until you realize that it's relegated to online listening only. Since everything online is essentially "On Demand" there's little in terms of breakthrough here. Maybe it's an updated embeddable player that's the big deal? I don't know, but the thought of On Demand and Radio sure makes a lot of sense to me. And that spells an opportunity for Satellite Radio (not to mention headlines)... if they can pull it off.

I personally would love something like "Satellite Radio On Demand" - with the ability to access a limited variety of programming (likely original programming only) that you can listen to whenever you want. It would bring the listening experience to the next level.

I don't know exactly how they'd do it, since the receiver would need to send a signal to access the different programming, but that's up to the engineers to figure out. I just want a true hybrid between choice, and selection... how great would that be?

[via MediaWeek]

XM and Sirius published an advertisement in Communications Daily, The Hill, The Politico and Roll Call today publicizing the recent survey that found a majority of voters support the merger of the two companies.

The text of the advertisement reads:

Finally, Democrats and Republicans agree on something.

70%* are in favor of A La Carte and Best of Both programming packages that would be offered in a XM-SIRIUS merger.

In fact, voters agree that the merger is in the public interest by a margin of more than 2 to 1. But it's not just Republicans and Democrats who agree. It's every segment of the population. People of all ages. People who live in the country and the city. People of all races.

Here's the actual ad:

(The decision for this merger really just can't come soon enough...)

UPDATE: The image and text I posted was actually the wrong version of the ad. I've updated the post and the image removing the "Everyone thinks it's a good idea" copy which was never run in any of the publications above. Sorry for the misunderstanding...

The Federal Communications Commission is being flooded with what appears to be a form letter stating opposition to the Sirius-XM merger. As a result, the tide of "public opinion" has just been turned against the Sirius-XM merger.

SiriusBuzz has been tracking the progress of comments and note that prior to the anti-merger form letter, "over 77% of the comments submitted to the FCC would be pro merger." But as it stands now, 50% of the comments submitted are anti-merger, while only 49% are pro-merger.

Whether you are for or against the merger, the use of form letters to portray the public opinion can only be considered deceptive and misleading. The form letter reads as if this is being led by the NAB, as it uses similar rhetoric that the NAB has been spewing, but there has not been any confirming details to prove that the NAB is behind this.

Whoever it is, I think it's dirty and underhanded.

Call to action!
If you're a merger proponent and want to help out, please use the form available here or here, and voice your support. Even if you are against the merger, but feel tactics like form letters are dishonest and shouldn't play a part in this, please contact the FCC and let them know.

There's something inherently wrong with this technique, and I really hope that we can band together to let regulators know that we don't agree with it. If the public opposes the merger, then so be it, but let that be decided upon fairly and based on its merits. Not with rapid-fire form letters.

View a copy of what is written in the anti-merger form letter after the jump. Please note that the typographical and formating errors are actually part of the letter and are not mistakes on my behalf.