Sirius + XM = consumers screwed, again

One of my favorite companies in the world, Sirius Satellite Radio, today announced a merger with XM Satellite Radio.

Pardon me if I'm not convulsing with enthusiasm. In fact, I don't like this deal at all, and I hope that the FCC and the Justice Department rejects this merger.

Let me explain why.

Competition is good for business, and it's good for the consumer. I'm certainly not saying that a combined Sirius/XM would be out to screw customers, but long-term, with the absence of competition, what do you think would happen? It's predictable as the day is long. Soon, without any other companies to compete against or to steal customers from, the company will focus on maximizing the bottom line for its shareholders (Read: Executives).

Translation - subscription prices rising. Before you know it, they'll want $20 or more per month for a subscription.

How predictable is this? In fact, I wouldn't be surprised if the merged company tried to jack subscriptions right off under the guise of "Since we merged, we are bringing you more programming."

The government should flat out reject this merger, period. Odds are, it will go through, though, because this administration's track record on mergers and consolidation of media companies.

Just last week, I blogged about (and decried) the merger of Cingular and AT&T Wireless, and if anything, I feel more strongly about it all now. The less cell phone companies there are, the more consumers get screwed, and the same applies to satellite radio companies.

I'd be lying if I didn't say that I would look forward to more programming, though - XM does have some programming that I long for - two of my brothers have XM, and they are always raving about Opie & Anthony, two Howard Stern wannabes. And I wish I could get Air America via satellite, as well as the NHL, which switches from Sirius to XM following this season.

Above, Gary Parsons, Chairman of XM Satellite Radio, left, and Mel Karmazin, CEO of Sirius Satellite Radio, shake hands following the signing of the merger agreement between the two companies today in Washington.

Another thing I don't like about only one satellite radio company is that it could be potentially easier for the FCC to go after (censor content) one company instead of two. There have been rumors afoot that the federal government has been itching to regulate satellite. Now that the Democrats have slim majorities in both Houses, it seems less likely, but future DemocratIC control of either House is anything but assured.

Only time will tell if the consumer gets screwed if this deal goes through. One thing's for sure - if I get a sense that I'm getting metaphorically raped by yet another corporation, out the window my subscriptions will go - right now, I get two a year.

(AP Photo/XM Radio, John Harrington)

Air America crash lands? Not quite

Say it ain't so, Air America Radio. The fledgling left-wing liberal radio network has declared bankruptcy. It really comes as no surprise, since there have been rumors of financial trouble since before it even went on the air in March 2004.

It's too bad, because if the company was run right, I'm sure it could be a success, and it may end up being one after it emerges from bankruptcy proceedings.

One could easily argue that there certainly is a market for a liberal slate of radio programs. After all, over 50 million people voted for John Kerry (or should I say against President Bush) in the last presidential election, so one would think that a majority of those people would be interested in that political point of view.

I hope the network gets its act together. I'm a paid subscriber for its podcasts. Of course, I'd enjoy listening to the show live on satellite radio, but Air America opted to go with the inferior company, XM Radio. If memory serves me correctly, Air America was initially on XM and Sirius. Going to Sirius would be a good start, since that company is on its way up, and XM is going in the other direction.

I'm not exactly fretting over this news, or fearing that AAR will go out of business. After all, Fox News Channel lost an average of $90 million a year for about five years before it became profitable. It's just that Rupert Murdoch has pockets that are, ahem, just a bit deeper than AAR.

Liberal Stephanie Miller appeared on Howard Kurtz's CNN show Reliable Sources recently to discuss AAR's fate. Take a listen...



Get it together, Air America. We need liberal voices in the media like never before, with the likes of Rush Limbaugh, Bill O'Lielly, Ann Coulter and the rest of the lying, distorting, radical religious right conservative scum distorting, lying and bullying their way to power. With a little luck, in about two weeks, part of the GOP power will be eroded.