Satellite killers

The National Association of Satellite Radio Killers. That's what former National Association of Broadcasters president Eddie Fritts joked the terrestrial radio and television lobbying group's name should be changed to. The label aptly describes the group's intense campaign to nix the $13 billion hookup between XM Satellite Radio Holdings and Sirius Satellite Radio. The radio industry believes the deal will be a major threat to its listenership and advertisement revenue. The future of the merger is at the Federal Communications Commission. The FCC is unlikely to reject the deal -- it typically approves transactions the DOJ has already OK'd -- but ferocious quarreling will likely take place among the agency's Republican and Democratic commissioners over possible concessions. FCC Chairman Kevin Martin wanted commissioners to vote on the matter at the agency's May 14 meeting, although that now looks unlikely. The internal FCC clashes reflect a larger battle taking place in Washington among public interest groups, broadcasters and the satellite radio companies over the future of radio (and television, if XM-Sirius rolls out satellite TV to the car). NAB's pressure will strengthen the broadcasters' campaign to make sure the agency doesn't let XM-Sirius provide local news and current affairs programming. Local programming by satellite radio could be a "killer" of terrestrial broadcasters' core advertisement revenue base, as well as their effort to provide more programming through digital radio. Blocking satellite from local content doesn't sit well with some Washington insiders. "I would argue that [terrestrial broadcasters] have a monopoly on local programming and let's bring some competition," says Gigi Sohn, director of consumer advocacy group Public Knowledge.
http://www.thedeal.com/dealscape/2008/04/satellite_killers.php