Karmazin: If satellite radio doesn't compete, then terrestrial radio is "lying"
Mel Karmazin just told the House Judiciary Committee antitrust task force that if terrestrial radio is not competing with satellite radio, then "they are lying" to the SEC.
Just as a reminder to those who didn't catch it - several terrestrial radio companies have stated in their own SEC filings that satellite radio (as well as Internet radio, and MP3 players) directly competes with terrestrial radio. These statements constitute admissions by law.
I'm really happy that Mel has driven home this point.


Comments
Mel samcked the NAB around pretty good. He is sharp. Several congressman actually said they support the merger.
Posted by: 93mustang | February 28, 2007 5:28 PM
That hearing went very, very well for the prospects of merger, IMO. Mel really is good at what he does. Wow. The NAB just took an 'ole fashioned whipping. I almost felt sorry for the NAB President. The lady from Public Knowledge seemed to be saying that terrestrial radio has been so bad, we need XM/Sirius to consolidate and compete with them, even on a local level.
Wow.
Posted by: rjr | February 28, 2007 5:29 PM
David Rehr just did more for the merger than anyone else could have done. He was made to look silly by not just Mel, but by the committee.
I think it was clear from the tone of the committee that no one is buying into the idea that this is a monopoly--the market is terrestrial radio and all other forms of audio listening devices.
I think that if the only issue remaining is whether this is good for the consumer, enough reasonable concessions can be made to satisfy the regulators. I peg chances of approval at about 95%.
Posted by: Mark Sandmann | February 28, 2007 6:02 PM
What this committee says is no true indication, remember, of what the DOJ or FCC will say. Neither has been known to follow the normal, rational thought process (but...before this hearing, I'd say that about Congress, too...).
Posted by: syphix ? | February 28, 2007 6:30 PM
Ryan - As much as you were against this merger, YOU may have sealed the deal with your post on the 10K annual reports last week.
I APPLAUD YOU! I have very little doubt that the competition section chatter started right here with that post.
Posted by: MUSCLE13 ? | February 28, 2007 7:11 PM
- Ryan - As much as you were against this merger, YOU may have sealed the deal with your post on the 10K annual reports last week. -
Yea thanks for that Ryan. When the merger goes through I'll no longer need to visit this site since I'll be cancelling my 4 radios. It'll be back to MP3's with a sprinkling of select time-shifted internet stream grabs or torrents of "Xirius" content. Not exactly the same as live nationwide satellite coverage but I refuse to support this BS "merger".
F**k corporate greed.
Posted by: SteveWeBB ? | February 28, 2007 8:03 PM
Buh bye Steve!
Ryan...thanks for posting this little tidbit. Terrestrial Radion can't have it both ways. You are either a competitor or NOT! Ones and Zeros Baby...
By the way, I havent listened to FM in about a year...and a merger is not changing this.
Posted by: AIR ? | February 28, 2007 8:12 PM
Not for nothing, but I'm against 'corporate greed' as well. I'm actually against mergers in general. But I'm against them because I'm for consumer rights and the freedom of choice.
I think the fact that Public Knowledge is for the merger a huge testament to the benefits to the consumer. This is a unique merger in that it actually opens up more options for the subscriber, rather than limit them.
Posted by: Ryan Saghir ? | February 28, 2007 9:14 PM
steve must be living in a cardboard box
since he doesn't go to work and make a living
you asy fuck corporate greed but your willing to steal
feeds off the internet. i'm glad your parents taught you something.
Posted by: sternfan73 ? | February 28, 2007 9:39 PM
"David Rehr just did more for the merger than anyone else could have done. He was made to look silly by not just Mel, but by the committee.
I think it was clear from the tone of the committee that no one is buying into the idea that this is a monopoly--the market is terrestrial radio and all other forms of audio listening devices.
I think that if the only issue remaining is whether this is good for the consumer, enough reasonable concessions can be made to satisfy the regulators. I peg chances of approval at about 95%."
How is this merger not a monopoly!?!?!?! Two satellite companies join to make one....ONE!!!!! It's NOT good for the consumer...plus, if you are a viable company that wants to broadcast your show on satellite, you're going to be stuck with ONE!
Are you posting this from the fry vat?
Posted by: Frank the Frowner | February 28, 2007 10:02 PM
Ryan posted a FACT about what was written in the SEC filings by terrestrial radio stations. A couple of days later Mel mentioned that competition clause in the 10Ks on Howard's show and today it was mentioned before Congress.
Whether it was picked up from this site we will never truly know. What Ryan did was OUTSTANDING real news reporting regardless of his views on the merger.
It may just be the best blogging I have ever seen. I disagree with Ryan on a several points I have seen on this blog over the last couple of years. But I have never seen a more relevant blog post ever. Ryan may have truly effected the industry with that one post.
Posted by: MUSCLE13 ? | February 28, 2007 10:42 PM
'corporate greed' ?
Both companies have invested and 'risked' billions of investor dollars for almost 10 years in satellites and sat radio technology and content ... including losing $250 million just this last quarter alone !
Neither Sirius or XM has made $1 of profit as a corporation in 10 years ! I understand about Mel and Stern paychecks, stock options and all that - but I still wouldn't call this balance sheet greedy ! Maybe in 10 years.
By then other competitors will be pounding on them and every car will have 30G harddrives.
Posted by: Mike | March 1, 2007 4:33 AM
Assuming Ryan has that kind of power, while the hearings are going on I hope he provides some kind of editorial about what makes Satellite Radio great. We should have a post about what should be preserved from each channel, and what pieces of the corporate culture should exist.
(A lot of people want Lee Abrams to head music, for instance, and I don't think it would be fair for the service to drop O&A just because they irritate Howard Stern or Mel. People are afraid Mel might add commercials, for instance, to the music channels.)
Posted by: JRT | March 1, 2007 8:27 AM
- This is a unique merger in that it actually opens up more options for the subscriber, rather than limit them. -
They say that about ALL mergers Ryan. If this threatens what I like about the service I'm paying for right now, how is good for me?
- By the way, I havent listened to FM in about a year...and a merger is not changing this. -
Neither have I. FM makes noise for me for 30 seconds on my alarm clock in the morning, nothing more. The bottom line is satellite IS competition for FM, but not the other way around. FM won't be stealing anyone away anytime soon.
- since he doesn't go to work and make a living
you asy fuck corporate greed but your willing to steal
feeds off the internet. i'm glad your parents taught you something. -
You bet your ass. I like living my own life without TV controlling my schedule. I watch it when I want, commercial-free and in near-DVD resolution. As for work, I'm typing this ON BREAK right now. I work 10 hours a day, usually 6 days a week.
And now I get to teach my parents how to utilize their DSL connection to help them take control of their viewing and listening habits too. The corporations should be thankful there aren't more people like me out there. F**k "consolidation" and fewer corporations running everything.
I'm going to enjoy coming back here in a year or two when half of you are complaining about changes to your service and no other equivalent options.
Posted by: SteveWeBB ? | March 1, 2007 8:37 AM