Looks like the NAB's hypocrisy is being picked up by the media now. Yesterday's Wall Street Journal features an article, What's the Frequency, NAB? that questions the NAB's motives behind opposing the Sirius-XM merger.
I really like this piece, mainly because it cleanly and clearly spells the whole situation out:
"No one knows whether the public will ever really take to the pay model, but it's not the role of the government to help the NAB smother a fledgling competitor in the crib. This appears to be a merger of desperation more than anything, and blocking it could well result in no satellite-radio providers and thus fewer listening options for consumers."
Oh, and aside from all that, I do relish in seeing the NAB exposed for what it truly is.
ABOUT DAMN TIME!!
>>> This appears to be a merger of desperation more than anything
This is the bottom line, isn't it?
If both companies came out and said, "Yes, we have to merge because we think it will increase our chances of one surviving" -- then, followed it up with evidence to this effect, supporting the merger would be easier. But Mel has blatantly denied this very allegation.
This is probably an apt description of SIRI's position -- it has lost the OEM battle, has created a cost structure that will make it difficult for years to come, and still has another satellite to launch in the process. And, it still has (and will have) less effective utilization of its bandwidth which it cannot get out from under.
XM, OTOH, seems to be within reach -- strong OEM deals, SACs running at a fraction of SIRI's, more subscribers, better technology, etc.
Of course, this begs the question, "What was XM's management thinking in this 'merger of equals' nonsense?"
If they need it to survive, they need to come out and say so. Misleading the public about how a monopoly is going to provide better value is not the right approach to this.
FCC and DOJ have an obligation to protect the public, who for the most part, is not competent to know what is in their best interest, from a fast-talking salesman like Mel K. If he can do a sales job on XM's management like he obviously did, there is little doubt he can sell this crap to the consumer, who lacks the fundamental knowledge on which to base a decision.
A merger of desperation? Give me a freakin break. Between the 2 of them next year they will have 20 million subscribers with every major car deal wrapped up. Plus they were both cash flow positive already last quarter. They are going to be the AOL of the 90s once they get the merger through.
Only difference is they will actually have the content that AOL lacked. Biggest key to the merger that everybody ignores.
Meant cash flow positive last quarter of 2006.
"FCC and DOJ have an obligation to protect the public, who for the most part, is not competent to know what is in their best interest"
Unfortunately, neither department is objective and neutral in their actions.
>> Unfortunately, neither department is objective and neutral in their actions.
Unfortunately, I believe this to be the case as well.
But if FCC permits the merger of XM & Sirius, they're going to have to explain how the situation is different from the case of satellite TV providers.
THIS IS EXACTLY WHAT THE "MERGER" WAS DESIGNED TO DO........
EXPOSE THE NAB
Now we can drop the merger BS and get back to biz.