Posted on 03/30/2007 1:08:45 PM PDT by It Aint Easy
A study sent yesterday to the Federal Communications Commission and the Department of Justice demonstrates that the proposed merger between XM and Sirius would create a monopoly, constituting a likely violation of the antitrust laws.
Conducted by one of the country's leading economists and scholars, the study lends concrete evidence and analysis to some of the most important questions that have plagued lawmakers since the merger was announced earlier this year.
As lawmakers on Capitol Hill began to focus increasingly on what the relevant product market is for satellite radio and what impact this merger would have on consumers, the Consumer Coalition for Competition in Satellite Radio ("C3SR") -- the only group solely dedicated to protecting the interests of the over 14 million satellite radio subscribers in the United States -- approached J. Gregory Sidak of Criterion Economics, L.L.C to prepare an expert declaration analyzing the likely competitive impact of the proposed merger of XM and Sirius.
Specifically, Sidak, a former Deputy General Counsel for the FCC, was asked to determine whether subscription-based satellite digital audio radio services ("SDARS") are a relevant product market for antitrust purposes, and to assess the unilateral pricing effects of the proposed merger in the relevant product market.
Major Findings of the Criterion Study:
*Distinct Market: SDARS are a distinct antitrust product market.
*Anti-Competitive: The proposed merge would be anti-competitive as (i) it constitutes a monopoly under the most reasonable market definition; and (ii) even under a more expansive market definition the proposed merger would increase seller concentration ratios to unacceptably high levels.
*Consumer Benefit: The majority of efficiencies identified by XM and Sirius would not benefit consumers.
*Consumer Welfare: The conditions offered by XM and Sirius would not preserve consumer welfare.
The study took into account competition from other audio products such as MP3 players and Internet radio, and determined that satellite radio is a distinct product market for antitrust analysis. Even when the product market is expanded to include AM, FM and HD radio, the proposed XM-Sirius merger still raises serious antitrust concerns.
"Regardless of the definition, a satellite radio merger still has an antitrust component that must be thoroughly examined by the Department of Justice and the Federal Communications Commission," said Sidak. "No matter how you slice it, dice it or package it, the merger of XM and Sirius would establish a monopoly, which are typically characterized by a lack of economic competition for the good or service that they provide, as well as a lack of viable substitute goods."
The results of the study give subscribers further cause for concern about the future of their satellite radio service and strongly suggest that Sirius-XM would have the incentive and opportunity to raise prices and cut programming. "This study confirms, empirically, what we have been stressing since before this merger was even announced: subscribers do not view their satellite radio service as a substitute for other forms of entertainment, and a merged provider would be able and motivated to raise prices and cut back the programming that so many listeners value and depend on," said Chris Reale, a founder of C3SR.
The study could prove to be an important component for Congress, the FCC, and the DOJ in determining whether or not to approve Sirius and XM's merger proposal, as it addresses many of the questions posed by lawmakers in a series of hearings held earlier this month.
A complete copy of the Criterion study is available for download at http://www.c3sr.org/.
NFL is a wast of time.
Wrestle Mania is the way to go!
If you work in a metropolitan area, you should be able to get the Sirius over-the-air broadcast. Works in DC, Philly and here in Richmond.
First of all, they'll be a stronger competitor in the radio market together than separately.
Second, they're planning to sell some of their satellite space so they won't be a monopoly.
Exactly -- except some channels that are duplicates. In that case, the cvhannels will be merged into one beter station.
It is by no means a monopoly. Anyone who owns an Ipod or MP3 player knows that.
You can also music for free legally by recording the many free Internet Radio stations and playing them in your car via Ipod or even CDs.
XM streams content online.
If you want to listen in doors, check around your office to see if anyone already has SAT. radio. Depending on the construction of your building, what sky you can see from a window, etc, it may not work indoors, EVEN IF you are right next to a window.
XM streams content online.
So does Sirius Satelite Radio. and Most large cities have a Sirius Radio repeater system to broadcast the signal over the air. So if your office has a window you should have No problem receiving a signal.
Hell I drive into a multi-leval Concrete and steel parking garage in a major city and I get a signal that as clear as you can get.
It beats anything you can get on terrestrial radio.
You mean after their equipment is bought up by another broadcast service for penies on the dollar and dont pay one personality hundreds of millions?
2.Satellite radio will be gone in 5 years.
3. I used to subscribe but I got rid of it. $13 a month to listen to filth? Forget it.
NOTE: This is sarcasm. Getting the inane talking points out of the way.
(I left off sarcasm tags last time, and got peppered, lol!)
So does Sirius, BUT Sirius doesn't stream EVERY channel, AND you don't get all the cool features your radio provides (artist alert, 40 minute playback, etc).
Well, then let the merger proceed and regulate the crap out of it.
Excellent point.
I don't subscribe directly but I get XM through Comcast and AOL - a deeper lineup but without adding duplication would suit me just fine.
The reason I don't listen local stations much is they talk too much compared to the music.
I don't buy songs from Itunes or anywhere else online is music from the major artists are crippled with digital rights management.
There could be a hundred satellite music companies or none and it would'nt fix the core problems with local radio and ITunes.
Did a few thousand FM and AM radio stations close down recently?
The MSM,Universities,Hollywood,Music industries, non profits are a monopoly so break them all up.
Talkers Magazine had him at 2.25 million weekly listeners in late 2006. For comparison, Opie & Anthony had 1 million and G. Gordon Liddy was at 1.5 million.
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