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Justice Department Approves XM-Sirius Merger

In the latest example of two wrongs desperately hoping to make a right, satellite radio rivals XM and Sirius are one step closer to blissful orbital matrimony as the Justice Department has approved the companies' merger. It still has to get past the FCC, but Justice accepted the networks' argument that HD radio, iPods and, uh, player pianos constitute adequate competition in the face of what sure looks like a monopoly to anyone with eyes. Assistant attorney general Thomas O. Barnett laughs off your suspicions, though:

In several important segments of their business, with or without the merger, the parties simply do not compete today and therefore the merger would not be eliminating any competition between them.

Right, so can Apple and Microsoft merge, because people can just use typewriters and read magazines? Hooray!

Despite the fact that Sirius is headed by my creepy former boss at CBS radio, Mel Karmazin, his company has always been my favorite of the two: Howard Stern is as funny as ever, and the delayed broadcast of BBC Radio 1 is like pure crack cocaine to an anglophile like myself. Plus, again, full disclosure, their Boombox channel 34 asked me to do a guest mix once. In comparison, XM's roster of lowest-common-denominator non-radio celebs like Oprah Winfrey and Willie Nelson probably seemed like good ideas at board meetings, but don't necessarily make for good radio. Their stock prices are the inverse of my opinions, however, with XM nearing $14 and Sirius up above $3 after news of the approval emerged.

What would a combo Xirius network look like? Well, first of all, it might let you choose what stations to subscribe to (and pay for), if FCC chairman Kevin Martin has his way; the NY Times says he is "thought to support… the creation of a so-called a la carte system of pricing." You mean I wouldn't have to pay for 80 sports channels or Sunny 24: Soft Pop Oldies, and I could just go straight to Boneyard 41: Hair Bands? Okay, maybe this merger's not so bad.

Comments

Sirius is my favorite. XM plays the same music over and over. I hope they replace the music track of XM with Sirius. I would much rather have Sirius with my Direct TV.

Posted by: Mary on 03/26/08 at 2:26 PM Respond

To argue that these two companies do not compete and therefore a merger will have no effect on competition is pure and simple, a fallacy. Of course they compete and such a merger creates a monopoly that will prove to be a detriment to consumer welfare. While it is true that the present duopoly is not in the best interest of the consumer, the monopoly will be worse.

Posted by: Bob on 03/26/08 at 3:00 PM Respond

I'm an XM fan for the last 5yrs. You would have to be dead and buried to believe what the DOJ is saying. Lets hope the FCC has a better handle on whats real.

Posted by: Marty on 03/27/08 at 5:34 AM Respond

Indeed Chairman Martin's support for ala carte is an enduring mystery, since the networks (cable and satradio) are so dead-set against it in any form.

He's sOoo in their pockets in every other way, that I don't understand how he makes money on the idea of ala carte. (that's always the standard, with NeoCons)

If I could buy cable, and ONLY get and pay for PBS, NPR, and C-SPAN, and not pay for mindless sports, "reality," and right-wing-owned "news," why, then I'd get cable!

Justice Department Approves XM-Sirius Merger

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