XM-Sirius in a post-DoJ world: Still needs FCC approval, NAB still complaining
- March 25th, 2008
- 8 Comments
The Justice Department gave its blessing to the XM-Sirius merger yesterday. Now we wait for the FCC to weigh in, most likely siding with Justice in giving the merger the OK. Maybe they’ll throw up a few last minute hurdles—please demonstrate how this merger helps the consumer and not just your bottom line, for example—but most analysts I’ve heard and read said they expect the FCC to ultimately give its OK.
Not everyone’s happy with the decision, as you may have guessed.
The National Association of Broadcasters officially freaked out yesterday, saying it was “astonished” that Justice approved the merger. “We are astonished that the Justice Department would propose granting a monopoly to two companies that systematically broke FCC rules for more than a decade. To hinge approval of this monopoly on XM and Sirius’s refusal to deliver on a promise of interoperable radios is nothing short of breathtaking.” (A note on that interoperable radio thing: Supposedly, XM radios cannot receive Sirius signals and vice-versa. Both companies need to figure out a way for that to be fixed so current subscribers don’t get screwed.)
The NAB, which is the lobbying arm for terrestrial radio, among others, doesn’t want to see a combined satellite radio company for a few reasons. It knows that both companies are unlikely to survive as two separate operations much longer, so preventing a merger will ensure their dissolution. That’s one less competitor for terrestrial radio to battle. It hides behind that whole “monopoly” argument because, frankly, it’s an easy sell. A mere utterance of the word and most layman get suspicious.
Another group not particularly happy is fans of the Opie & Anthony Show. I’m a fan, if you haven’t figured that out by now. They fear the combined company will treat Howard Stern, their foil, better than their own Gregorio and Antonio. Mel Karmazin, who’s currently Sirius’ CEO and is pegged to become the combined company’s CEO as well, is long thought to be a supporter of Howard Stern. Not in a fan sense, but in a “What’s that, Howard? You want to be on mornings and me to force O&A into afternoons? Done.” (Karmazin, Stern and O&A all worked for Viacom several years ago. Stories of Karmazin taking sides and undermining O&A abound. Google, and syndication underground, is your friend there.)
Excited yet?
jim (Who am I?)
6 months ago
I love O and A and listen everyday. I usually tape the replay when i get home from work and listen the next day at the office. Personally, I wouldn’t mind if they were moved to the afternoon. I think they have a brilliant afternoon drive show that’s currently shoe horned into the morning slot.
Denverpest (Who am I?)
6 months ago
I love my XM radio and have become a HUGE O&A fan the past 3 years. I would be very upset if they got moved to afternoons because of Karmazan’s personal friendship with Hoo Hoo Howard and his grudge against O&A rather then making a smart business decision. Howard is a was-been and Opie & Anthony are the hottest thing in terrestrial & satellite radio NOW. If they get slotted for afternoons, they should leave satellite and stay on CBS. Then watch the huge subscriber loss - and therefore revenue loss- from this new merged company. I certainly won’t renew.
Geraldo (Who am I?)
6 months ago
1. How many subs do O&A generate at XM? They say they are the most listened to channel on the platform. If this is true, it would be stupid to not carry them on Sirius.
2. How much animosity exists between Mel/Howard and O&A? How much does Mel reqret censoring O&A for Howard?
3. If 1>2 then O&A should be able to have a platform on Sirius.
Dollar for dollar, I think O&A/R&F are a better content deal than Howard or Oprah are currently. Mel has pulled off this merger that had little or no hope (of course still pending FCC approval). As a business man, I am sure he will make the right move as far as O&A are concerned.
Time to download Howard from Usenet to hear his take on the whole thing.
Nicholas Deleon (Who am I?)
6 months ago
1. XM doesn’t give out those numbers.
2. Don’t know. Going by what the boys have said over the years, they really didn’t get along; we know they don’t like Stern. That said, Karmazin’s a businessman–if O&A bring the subs, what does he care? Should make for a few interesting hours of radio when they come back tomorrow.
-na
jamie
6 months ago
i don’t think that the new company would force O&A to do afternoons, they already have to do radio in the morning. Terrestial radio sure as hell isn’t going to move them to afternoons and they’re broadcast live on satellite. So i highly doubt they’re going to force them to do half a broadcast in the morning and the other half in the afternoon. Ole HOO HOO might finally be able to sleep in. Hopefully he’ll develop sleep apnea and die, just because of the extra sleep.
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FireStation (Who am I?)
6 months ago
As long as Mel doesn’t mess with Ron & Fez I don’t care what happens to O&A. In fact, Cindy Sheehan and Anthony can join Bloated Gollum in riding Louis CK’s jock.
JJJ (Who am I?)
6 months ago
Neither show is going to move anywhere. It’ll stay exactly the way it is…. so stop cryin’.
Howard (Who am I?)
6 months ago
Just pisses me off to think that 1 penny of my sub will go into the pocket of Stern. His contract was bloated to the point of obscene. Howie can just cash in and retire to the Hamptons. He’s been phoning in his show for years now anyway.