Thursday, February 22, 2007

XM-Sirius: Congressional Hearings

Congress will be holding hearings on the XM-Sirius merger:

The hearing will enable lawmakers "to probe whether this merger will enhance or diminish competition in the digital music distribution industry" and whether the "merger will lead to increased choices and lower prices for consumers," Conyers said in the statement.

...

The hearing will consider "whether satellite radio competes against terrestrial radio, the Internet or other emerging technologies," Smith said.


I like that last bit. Clearly, satellite radio competes against the listed items. Hopefully this will be a mostly positive hearing, laying the groundwork for approval. Even aside from my financial stake, I do worry that the existing duopoly industry structure is not financially viable.

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