Friday, July 06, 2007

Asian American Justice Center Comes Out Against the Merger

The Asian American Justice Center (AAJC) today came out against the merger. They are one of very few non-NAB related groups to oppose the merger.

The AAJC opposes the merger on the following grounds:

* Would create a monopoly and a single gatekeeper
* A merger would decrease chances of minority related programming
* Detrimental impact on terrestrial radio
* Likelihood of price increases

The AAJC believes that XM and Sirius have made little effort to date to serve the Asian community and the combined entity would be even less inclined to do so.

They made the point the combined company cannot add channels, only swap one channel for another. They believe there is little opportunity for Asian specific programming to be added.

The AAJC makes some good points. XM and Sirius have been mis-leading, in our opinion, about the addition of channels and programming. The only way they will increase diversity is by giving up something else. As profit maximizing firms, one would have to conclude that the programming diversity in place today is to attract the maximum number of listeners and to produce the maximum ad revenue. We see no incentive for satellite to change this formula, unless it increases their profits. A merger doesn't make programming diversity any more attractive.

xm sirius satellite radio stocks patent patents trademark copyright experimental licenses wcs eas invest investing fcc

Jump to :: Satellite Radio Techworld Home Page ::

No comments: