During yesterday's House Antitrust Task Force hearing, it was consistently highlighted that the mere presence of David Rehr, President of the NAB, was evidence alone that terrestrial radio competes directly with satellite radio. The NAB's grave concern over the merger, not to mention the years of crying to Washington over the competition that satellite radio serves, is now finally working against them."If [David Rehr] is here because it's competition, shouldn't that be taken into account as we look into what constitutes competition?" asked Rep. Chris Canon (R-Ut).
"I think it's fair to say that we compete with a nationwide, multi-channel, audio programming company," responded David Rehr. "However, [radio stations] do not compete on a nationwide basis. It's one-directional competition, as opposed to a market when you're constantly competing against each other on every aspect."
Yet as Gigi Sohn, of the consumer advocacy group Public Knowledge, pointed out in her testimony that it's laughable that the NAB is touting about the beauty of competition, when at the same time they want to restrict and prevent satellite radio from broadcasting localized content.
"We're only talking about 'satellite' radio here, why are we not talking about 'all' radio? That's my problem with Mr. Rehr," said Sohn. "Seventy-five years ago Congress said that broadcasters should have a monopoly in local programming, and therefore in 2007 we should keep it that way? You talk about a level playing and a government bail out, when in fact you guys [the NAB] are asking for a government sanctioned monopoly on local programming and local news. In this day and age it makes absolutely no sense at all."
The key in getting this merger to pass is to redefine what the 'relevant market' is. Instead of 'satellite radio' Sirius and XM are arguing that it's a greater "audio entertainment" market - that regardless of the delivery method - all providers of audio content compete with each other.
"I think that perhaps Mr. Rehr's very presence here helps to confirm this argument -- that the relevant market is really all of radio," Rep. Rick Boucher, (D-Va) said. "You're offering satellite radio, but you have terrestrial radio, Internet-based radio, then you have all the IP-enabled set of applications like music streaming and downloads to portable devices like iPods. Music is music, and it really doesn't matter the source of it."
While the NAB vehemently opposes this merger, and makes claims that satellite radio is one-way competition (yet terrestrial has a monopoly on localized content), these actions do nothing but to help prove the case that Sirius and XM are making.
So thank you Mr. Rehr, you yourself have helped Sirius/XM in a way that they couldn't possible have done alone. My hat tips to you sir, you've served us well.
It's very true how terrestrial radio has a monopoly on localized content. Share with Satrad if we are not a threat. One thing I can say is that this merger is bringing alot of topics to light.
I don't understand why you're talking about the merger in favorable terms. Thought you were opposed. The NAB is hurting consumers by ironically becoming a driving force that would serve to get the merger approved, not helping.
just like the cable companies have a monopoly on a local level
Jim: I was originally opposed to the idea because I come from the camp that considers most mergers "bad." But the bottom line is that I'm PRO-CONSUMER more than anything else.
This is a unique case, and the more and more I've thought about it, the more I'm in favor of it. If more choices are given to the consumer, and prices are kept in check, then I'm a happy man.
That said - as soon as I detect that this merger will work against the consumer, I will be VERY vocal about it. I truly want the consumer to benefit the most from this, and if done correctly, they can.
i DO think the competition for new gadgets, technology might be slightly affected in a bad way if the merger would go forward as they are being aggressive in this area right now against each other--But..Having marketing now geared toward competition, not themselves plus combined R&D might make things interesting.The consumer would win as the combined co would offer more content, streamlined equipment, better pricing ala carte tiers and more competition against free radio-and who knows what new technologies come next-Plus i think one of these companies doesnt survive if they dont merge--There is no doubt that pricing will not go up if merger--If no merger--pricing goes upa few dollars
I like the merger for one reason and one alone.
WiFi and Wimaxx are comming... free mobile broadband /internet connection to a "Smart Car" is comming.
XM and Sirius together or apart must both be profitable and 100% factory installed before this competing technoligy is mass produced.
All other reasons... I dont like the merger. I dont like the terms. I dont want to pay Howards salary, I don't like Mel, I cant stand Uncle Joe, I fully believe XM is positioned much better long term than Sirius is from the balance sheet to OEM partners. XM has nearly 4 X the musical library as Sirius and has the real time traffic and weather in a way thats GPS linked, XM has the promotional channel and the telematics in place, They are just so far ahead in everything but the subscriber momentum. Can sirius find you an open parking space?
I think both XM and sirius would have been fine seperatly and I am really surprised at both XM and Sirius to even mention the merger thing unless there is an alterior motive.
"XM has nearly 4 X the musical library as Sirius"
While I will agree that XM has somewhat deeper playlists for certain genres of music, where is the proof of this?
Guy even looks like a donkey's behind ...
"Guy even looks like a donkey's behind ..."
A face made for radio...
You can bet your last dollar that wi-fi and internet streaming audio will be available in car audio in the not-too-distant future. The satellite argument is very valid. They are not just competing with free am/fm. This argument should be geared more toward the content rather than the "service". The choice is do you want it free with commercials or will you pay for it with little or no commercials? Free radio will never die, but it will never be a cutting-edge content provider ever again.
I just knew I should have stayed home. Damnitt... I even said to the wife..." Honey do you think I should go to that hearing " ..... bitch. Shoulda known.
Looks like ferret-face has his paw stuck firmly in his mouth. Does me a world of good to see him eating his own words.