Should The XM/Sirius Merger Go Through?

Advocates for the XM (XMSR)/Sirius (SIRI) merger are signing an online petition urging that US Congress and the FCC endorse the XM Radio/Sirius merger deal. This adds another dimension to the XM/Sirius battle: now Congress must deal with consumer interests as well as economic interests. As the undersigned number grows, hopefully Congress and the FCC will allow the deal to pass in order to benefit the most important people of all: the subscribers.

Fear of XM-Sirius Monopoly

The FCC’s greatest fear is a satellite radio monopoly, which would hypothetically give Sirius complete economic control over the satellite radio industry. However, I along with others tend to disagree.

A combined Sirius and XM would not, under any definition, be a monopoly. Satellite radio is primarily a consumer-driven, paid-subscription alternative to free radio across the nation. The fact that well above ten million consumers have elected to pay for satellite radio when terrestrial radio remains free and readily accessible nationwide speaks volumes about what consumers want – unfortunately for the NAB and its members, consumers have tired of the pervasive, bland content provided on thousands of radio stations, for free, nationwide. (Source: XM/Sirius Petition)

For satellite radio customers (and former customers like myself), one satellite radio provider would simplify the annoying dance of choosing the right service. During the summer of 2006, I only subscribed to XM radio to listen to the World Cup 2006 via the world cup channel. Once the World Cup ended, I canceled my service because Sirius possessed a much better channel lineup at the time. But why should we as subscribers have to choose between Sirius or XM radio in the first place? I want to enjoy the NFL and Major League Baseball on the same network for goodness sakes!

Comments

[akindman:]

Your disagreement seems based on the notion that a monopoly is necessarily and always bad. The fact that it might be easier (at first) for consumers doesn't address whether the combined entity would have monopoly power or not.

2007 Apr 10 10:15 AM