Tick-tock.
It’s been two months since the U.S. Department of Justice approved the merger of the two U.S. satellite radio companies, XM and Sirius. That was supposed to be the hard part. It was thought that the FCC approval was soon to follow. It was a mere formality. As I’ve written about here and here – [...]
Categories: Digital, Satellite Radio
Tagged: Merger, Satellite Radio, Sirius, XM
A lot has already been written and said about the DOJ’s approval of the XM-Sirius merger. A popular view is that the approval amounts to nothing more than yet another U.S. government bailout.
A column in today’s Washington Post by Steve Pearlstein takes this view.
It’s a reasonable point of view. The fact is, as Pearlstein points [...]
Categories: Music, Satellite Radio
Tagged: Competition, Merger, Satellite Radio, Sirius, XM
Yay! It only took 13 months to prove that a combined XM and Sirius would still have competition! Duh.
As everybody inevitably knows by now the U.S. Department of Justice (DOJ) approved the XM-Sirius merger yesterday (March 24, 2008) stating that a combined entity would not be anti-competitive. It’s not officially official (yes, that’s an “official” term) yet as the FCC still has to issue its approval, but that’s expected shortly.
So the right thing happened. Common sense prevailed. But apparently not without a lot of angst, lobbying money, and silly ‘demands’ from the terrestrial radio companies. This merger is in the best interest of the consumer. It provides more choice to listeners and a tiered a la carte pricing plan – one which wouldn’t have happened if the merger didn’t go through.
There are varying viewpoints on this of course (see Jerry Del Colliano’s Inside Music Media column) but to me it’s quite clear. The developments of the last 6-7 years in the radio/music industry have changed the standard definition of “competition.”
For illustration purposes, let’s go waaaaaay back in time…back to the ‘dark ages’ of 2001. Back when you mentioned the words “satellite radio” to someone they would respond with a puzzled look and say, “Huh? What’s that?”
When XM launched its service in September 2001 and Sirius followed in July 2002 they were the “next big thing.” Back then options were extremely limited for radio listeners and for consumers of audio entertainment in general.
But now, uh, not so much.
Categories: Digital, Satellite Radio
Tagged: Competition, Merger, Satellite Radio, Sirius, XM