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.
Good on Martin. Rehr and friends were probably hoping to get some damning sound bytes out of Martin at their show, but he stayed pretty neutral, and in fact seems rather open to the merger. I'm glad that the toxic atmosphere that must have existed in that room didn't sway him :)
"Martin spoke only generally about the merger, stating that the current rules prohibit both companies from merging,"
Actually, that sound pretty damning...the rules are as they are. IF the rules changed, things might be different...but don't they have to rule based on the current rules?
boy looking at from the consumer point !!! note the comment on being held to a higher threshold then other transactions !!!!!!!
By Jeffrey Yorke via r&r
The FCC is holding Sirius and XM satellite radio companies to a “higher threshold than other transactions” it must prove beneficial for consumers, chairman Kevin Martin told broadcasters during the annual “FCC Breakfast” at the NAB Radio Show in Charlotte Thursday (Sept. 27).
Asked by R&R afterward whether he would consider the satcasters’ argument that satellite radio competes not only among the two satellite companies, but also terrestrial radio, HD Radio, and in a greater audio entertainment arena that includes MP3 players, cell phones, and devices yet to reach the marketplace, Martin said he would be “looking at it from a consumer’s perspective and what its affect is going to be on consumers and make sure they aren’t going to be harmed.”
During his nearly 40-minute on-stage chat with group owner Russ Withers, Martin acknowledged that the satcasters have “come forward with some interesting proposals such as a la carte pricing and we will analyze that closely.”