[opendtv] Re: Satellite radio
- From: "johnwillkie" <johnwillkie@xxxxxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 25 Sep 2007 10:37:14 -0700
So, the fact that XM and Sirius both received satellite grants just a few
years ago that were conditioned on them never merging isn't a logical
argument against the merger?
Huh?
What has changed in the marketplace in the meantime except for the
disruptions caused by XM and Sirrius? Should the FCC and DOJ let them merge
because they paid unsustainable amounts for talent and rights?
And, as for why NAB would oppose on salary grounds, try to keep up. NAB has
many more radio members than TV members. All members pay talent fees, or
they don't do their own programming. The rise in talent fees caused by XM
and Sirrius competing for talent has cost their members dearly. And, not
just at the top; they've hired talent from large, small and medium markets.
However, trying to morph that into an argument against the merger is a "hail
mary" pass at best. The FCC's jurisdiction doesn't cover talent fees, and
talent fee payments are just business decisions by radio & TV stations.
John Willkie
-----Mensaje original-----
De: opendtv-bounce@xxxxxxxxxxxxx [mailto:opendtv-bounce@xxxxxxxxxxxxx] En
nombre de Manfredi, Albert E
Enviado el: Tuesday, September 25, 2007 7:45 AM
Para: opendtv@xxxxxxxxxxxxx
Asunto: [opendtv] Re: Satellite radio
Craig Birkmaier wrote:
> Another BIG HUH?????
I'm totally flabbergasted by both of your "huh"s.
> Buying power requires capital and cash flow, things usually
> associated with what some might consider monopolist market shares.
>
> ON Digital went bankrupt trying to create a terrestrial
> multi-channel DTT service, paying too much for content. They were
> not able to compete effectively with the alternatives to their
> service.
>
> Satellite radio does not compete with broadcast radio...
>
> It competes with iPods.
Here is what I said, Craig:
>> Best I can tell, the NAB's concern is that such a monopoly would
>> have so much content buying power that local stations would be
>> shut out of competition. Although the NAB also makes arguments
>> which I find puzzling. For example, that such a merger would
>> reduce innovation and increase prices for satellite radio.
>> Probably true, but it sounds to me like that would work to the
>> NAB's advantage.
So:
1. Go to the NAB site.
2. Read this:
http://www.nab.org/AM/Template.cfm?Section=The_Truth&Template=/CM/Conten
tDisplay.cfm&ContentID=8371
3. Focus specifically on this on page 11:
"Of course, there is also the very real risk that a combined XM/Sirius
will use its market power to force content providers like sports
programmers to deal only with them. If the merger is approved, it may
only be a matter of time before the American public can listen to their
favorite baseball or college football team by paying whatever monopoly
rents a combined XM/Sirius chooses to charge."
So, once again, *THIS* is the one logical argument I could see that the
NAB had against the merger. The other arguments were on issues that
would, in some cases, actually benefit the NAB's membership, and
therefore did not sound genuine to me. Sounded more like David Rehr
repeating back to the FCC what the FCC had said on previous occasions,
to show that monopolies are bad.
Here are a couple of odd objections on page 9:
"More specifically here, having monopoly status would enable the united
XM and Sirius to stop agreeing to pay outrageous talent salaries and to
exert greater pressure on programming suppliers. Eliminating competition
in the national mobile radio market through this proposed merger would
also greatly reduce incentives for the combined XM and Sirius to
innovate."
Why would the NAB object to either eliminating "outrageous talent
salaries" or to satellite radio becoming stale? Makes no sense to me.
Bert
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