Radio Merger Twist: RCN Concerned About Music Competition on Cable

RCN (RCNI), a cable television operator, has expressed concern about the Sirius (SIRI) and XM (XMSR) merger with the FCC. In a new twist, RCN is worried that SDARS will not offer a viable competitive choice for music over cable systems. RCN is stating that Sirius and XM have expressed that they are not interested in broadcasting their talent over cable systems, or expanding their offerings any further than the existing deals with Direct TV (DTV) (XM is on this service) and Dish Network (DISH) (Sirius is available on this network).

The chief issue for RCN is that the only real source of audio programming will be Music Choice, a service owned by RCN competitor Comcast (CMCSA). RCN feels that because Sirius and XM are not looking to expand into cable, a situation is being created where there is only one source (Music Choice) that can name their own price.

Whether the concerns expressed by RCN will be fully hashed out is yet to be seen. What is interesting here is that clearly the audio entertainment landscape has evolved well beyond AM and FM.

[RCN Filing]

Position: Long Sirius, XM. No Position Comcast, RCN.