NAB, SATCASTERS RATCHET UP MERGER WAR Jeffrey Yorke – Radio and Records NAB president/CEO David Rehr has written to FCC chairman Kevin Martin to recapitulate that local radio broadcasters oppose the proposed merger between Sirius and XM satellite radio companies “because it violates the antitrust laws and established FCC rules and policies requiring that such transactions serve the public interest, convenience and necessity.”
The four-page letter, sent late Thursday (March 22) is a milestone of sorts, since the NAB, which has been loath to say anything remotely complementary about satellite radio from its very beginning, notes that “competition between two satellite radio providers has served consumers well. Each provider has differentiated itself with unique programming and equipment offerings.”
But all of that is said to remind Martin that “the loss of competition will halt further innovations in satellite radio service and technology to the detriment of the public.” In another portion of his letter, Rehr notes that “the loss of competition in satellite radio ultimately will reduce consumer choice. Such changes and reductions in overall program availability will reduce consumer choice.” Rehr uses the word “monopoly” a dozen times and “monopolistic” once.
It’s probably the first time ever that the NAB has been concerned about the public’s right to better satellite radio programming and technology.
Rehr also raises concern that “the merged entity will control all of the spectrum now allocated for satellite radio in the United States and coordinated internationally for such use, thereby barring any meaningful competitive entry within the foreseeable future.” He adds that Sirius and XM don’t need to merge to offer unbundled programming and no one is stopping them from reducing their $12.95 per month fees either.
Meanwhile, Sirius and XM joined hands Friday afternoon (March 23) to note that the FCC’s Thursday approval of final HD Radio regulations further broadens the spectrum of audio competition and should be additional reason for the FCC to approve their planned $13.6 billion merger.
In a joint statement, the satcasters said, "The FCC decision underlines that HD radio on the AM/FM bands provide a real alternative to satellite, and that the current audio entertainment market is broad, robust and competitive. The decision will raise competition to a new level by stimulating the growth in HD radio stations (now 1200), enhancing its offerings to consumers and establishing a process for free radio to offer a paid subscription service for the first time." |