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ntrprnr

XM/Sirius to Merge

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jerm stop bitching about "no options" start up your own satellite radio company and we'll use yours :P

but in all seriousness i'm sure another company will emerge.. its inevitable



probably not a bad idea... we're sure to get bought out by XMS. peter, you in?

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just how can that get past anti-trust regulations?

oh wait i forgot that public officials are for sale.... silly jerm




they're the only ones in the space. they're not forcing the market - there is no other market currently.



I agree with Peter. While I am not an antitrust guy by any means, I see a key difference between satellite and terrestrial radio. Let's say that the merger results in charges of $50 per month for people to subscribe. Well, they have terrestrial radio to listen to. There is an option available that is free.

So, somewhat contrary to what Peter said, there IS currently another market - terrestrial. Even combined, Sirius and XM do not control a large segment of the consumer market.

Another thing is that Sirius (probably XM, as well - I have Sirius, so I can personally confirm it) has their own talent and programming. If, for example, satellite radio was merely doing simulcast of terrestrial radio, then I can see how it COULD be antitrust. But, again, they do their own programming, which tends to work against the presumption that it would be a trust.

Yet another factor is that the profitability of the companies ain't that high right now. Failure to merge may result in either both going out of business - which would leave less choice for consumers, or in one of them going out of business, which would harm bankrupt company's customers.


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One more time... How is this any different that the Echostar-Directv merger that the FCC blocked a couple years ago.

All the exact same arguments for and against it and it was unanimously Blocked by the FCC for anti-Trust.

Why do you think this will be different?



E/DTV was blocked primarily on lobbying from TWC, Comcast, and others.

No one is lobbying to block this deal, because there's no one TO lobby to block the deal! The only ones who would would be terrestrial radio, and I'm not holding my breath on that.

It's a small blip in world, considering how FEW people in the world have satellite radio to begin with. A lot more people have cable. Hence why it'll be paid more attention to.
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One more time... How is this any different that the Echostar-Directv merger that the FCC blocked a couple years ago.

All the exact same arguments for and against it and it was unanimously Blocked by the FCC for anti-Trust.

Why do you think this will be different?



because they made a mistake last time..:P

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just a thought, what is to stop someone such as richard branson from saying, "i can do this better and cheaper", or even "hey i think this would be fun and i have the money" and then launching his own satellite and offering virgin satellite radio?


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One more time... How is this any different that the Echostar-Directv merger that the FCC blocked a couple years ago.

All the exact same arguments for and against it and it was unanimously Blocked by the FCC for anti-Trust.

Why do you think this will be different?



That one was blocked on the basis of rural areas where cable was not available. Since the programming was not available in cable to give the audience a choice, it was blocked. If the rural person wanted A&E, they'd have one choice, which is bad.

It's why I mentioned the simulcast bit - there is no A&E radio station that is licensed to broadcasters in satellite radio. The satellite radio stations are produced by the broadcasters! There's a huge difference.

Of course, my explanation makes sense, which is the best reason for the government to not allow it.


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so.. the only 2 players in the market merge to leave only 1 player in the market... leaving the remaining entity with complete domination of said market and 0 choice for the consumer.... how is that not anit-trust?




um...ever hear of terestrail radio?

its exactly like Cable tv and youre basic channels.

its a choice not a requirement.
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Not really, for how many years, as the sole long distance provider did AT&T, (decades ago) rape us, charging $0.65 & upwards a minute, for the service, only now with all the competition, provide the same for; @$0.05 or less p/min with the unlimited LD packages, & Still making profits. Can you image what kind of profit they were making on us @ $0.65 & up p/min factoring in the economy of the time 20-30 yrs ago?



Though I agree with you in principal, you are forgetting one major component. One company had to build the network and capabilities, that had to get paid for as well.

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