Sirius/XM: You Heard It Here First!

Keith Sharfman —  19 February 2007

Today’s report that Sirius and XM plan to merge vindicates the antitrust analysis offered here last June.

Regulators should analyze the merger from a broad “audio market” perspective that includes terrestrial radio. Considering the extensive non-satellite content available to listeners, and considering as well the efficiencies associated with the Sirius/XM combination, it is reasonable to conclude that consumers will benefit from the deal and that regulators should therefore allow it (after careful review, to be sure).

The question I’m left with is: how long will it take for GM/Ford to follow?

6 responses to Sirius/XM: You Heard It Here First!

  1. 

    I’m all for deregulation (which lifting the bar would I guess be in this case), but not when it totally affects my life. I can’t live without satellite, terrestrial radio is horrible, and XM is much, much better than Sirius. I’d really prefer to pay 12 bucks a month than whatever Mel Karmazin would like to charge me for whatever he decides to program.

    They’re really relying on the case that HD radio a) exists, and b) is everywhere, no?

  2. 

    I was thinking “sound waves” as the relevant product market. Too broad?

  3. 

    They both offer distinctly different content, it isn’t like DISH and DirectTV merging.

    I don’t see any Anti-Trust concerns, the operating costs will be so much lower as far as eliminating duplicate satellites and infrastructure.

    This is a great day for Satellite subscribers.

  4. 

    Or perhaps the parties are prepared to litigate the question?

  5. 

    Wow! So apparently the parties disagree with the FCC Chairman’s contention that their licenses prohibit a merger … or perhaps he has changed his mind?

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    […] Bill of Rights”.Thom Lambert on Prerequisites.John on Please No “Passenger’s Bill of Rights”.David Zaring on Sirius/XM: You Heard It Here First!.Thom Lambert on Learning Economics Online […]