Karmazin: "Yes" to pricing restrictions for merged company
When questioned about the XM/Sirius merger in front of the House Judiciary Committee antitrust task force, Mel Karmazin was asked whether he would agree to pricing restrictions for the newly merged company.
"Yes," Karmazin flat out said.
When asked whether he would be able to agree to this for a four year period of time, Karmazin stated that he would be happy to discuss it with the necessary people. There was some joking back and fourth whether the timeframe would span within 2 weeks to 4 years, but in the end no timeframe was actually specified.
Karmazin was also asked whether he would agree to not transmit local content (local news/weather) and he clearly stated that they have no intentions of entering into the local market.


Comments
Perhaps CNN, MSNBC, Fox, etc. have to stop reporting on local situations as well. No more national weather, because it competes with the local tv channels. No more sports highlights, because it competes with the local reporters. Let's look at the big picture....geez...
Posted by: iband | February 28, 2007 4:22 PM
yes to what pricing restictions? Not changing the price or price structure at all?
or
"No, we won't change the price for 'basic service', but we will charge the consumer extra for packages which will contain content they currently get as part of basic service now, therefore in the end for someone who wants all those stations they get now, we will charge them more?"
Ol' chiclet teeth needs to be staight about the answers and not generalize to hide the fact that he wants to fuck the consumer.
Posted by: Adam | February 28, 2007 4:27 PM
Sheila Jackson Lee called Mel "Mr Karmoozin".
Posted by: poopboy ? | February 28, 2007 4:34 PM
I accept the fact that Mel is the new face of this merger but give us more concrete statements. Say three years and no price hike. That's not asking alot.
Posted by: prozac ? | February 28, 2007 4:56 PM
it is called a merger right. there are other people in the merger. hello.
Posted by: sternfan73 ? | February 28, 2007 5:29 PM
Let's all face it now. We will be paying more than 12.95 a month for everything we get now. We should all go get sirius lifetime subscriptions now while we have the chance.
Posted by: BigHead | February 28, 2007 5:33 PM
"Let's all face it now. We will be paying more than 12.95 a month for everything we get now."
This statement could not be further from the truth. Mel today told Congress that you would be paying $12.95 for your current XM or Sirius service and additional content (from the other service) that you don't currently get. In other words you will be getting more for your $12.95 than you get now. AND he would agree to a price freeze. The individual from Public Knowledge suggested three years, and I think if that's what the DOJ says, then that's what Mel will agree to. Did you all watch the hearing?
Posted by: rjr | February 28, 2007 6:56 PM
Adam said:
"No, we won't change the price for 'basic service', but we will charge the consumer extra for packages which will contain content they currently get as part of basic service now, therefore in the end for someone who wants all those stations they get now, we will charge them more?"
EXACTLY what I think will happen, Adam. You beat me to the punch on this one.
The new combined company is going to nickle-and-dime the subscriber to death, while reducing the number of channels overall. Oh, and hundreds of people will be out of work, too. Good luck to them with finding a job in the terrestrial radio industry, which is already "consolidating."
Posted by: crankymediaguy ? | March 1, 2007 5:29 AM
"The new combined company is going to nickle-and-dime the subscriber to death, while reducing the number of channels overall. Oh, and hundreds of people will be out of work, too. Good luck to them with finding a job in the terrestrial radio industry, which is already "consolidating.""
And you think the industry would do better if one of the companies have to declare bankrupcy?
Posted by: PNess ? | March 1, 2007 8:32 AM
I am really getting sick of the "one of them will declare bankruptcy" statements being ballied around all the time.
Both XM and Sirius management have stated that both will be viable services if this merger goes through. If that's the case, neither company worries about filing Chapter 11 or Chapter 7.
So, why do people believe the management when it comes to the Merger's positive features, but don't believe them when they state "we will be fine without the merger"?
Posted by: JRT | March 1, 2007 9:39 AM