Following the approval of their merger by the Department of Justice (DOJ), satellite radio companies XM Satellite Radio and SIRIUS Satellite Radio have highlighted the many organizations and individuals who have publicly endorsed their merger. They have all championed the lower prices and increased programming choices that the merger will afford consumers and have urged the Federal Communications Commission (FCC) to approve the merger without delay.
Wide Range of Support
In a strong indication of the consumer benefits inherent in this transaction, the companies unveiled an array of new programming options, including two first-of-their-kind a la carte options where consumers can individually select the channels they wish to receive. A public opinion survey found that over 70% of voters thought the two new a la carte packages would be a good deal for consumers.
Since first announcing their intentions to merge, the public reaction to the merger of SIRIUS and XM has been staggering. Representatives from every possible stakeholder group in this debate have weighed in supporting the merger:
– thousands of unique public comments from consumers have been filed with the FCC
– a number of Members of Congress from both political parties have urged approval
– two former FCC Chairman and former FCC staff have voiced their support
– leading car manufacturers have all indicated the consumer benefits inherent in the merger
– the nation's leading voices for minority audiences, including the NAACP and LULAC, have asked the FCC for approval
– religious leaders and family values advocates, including Cardinal Egan and American Values, have also supported the merger.
What People Are Saying
Here are just a few examples, in their own words, of why they support the merger:
On Diverse Programming …
"We are convinced that the pending Sirius-XM merger will be a positive development for consumers — more diverse, accessible and appealing options at lower prices in satellite radio will help further expand the reach of this medium." – Hillary O. Shelton, Director, NAACP
On Competition …
"I think that if XM and Sirius combined, it will be pro-competitive in all likelihood. It seems to me that there's no indication of any anticompetitive outcome if they do combine, so let's give them a chance to have a sharper point on the arrow and see if they can do better in terms of penetrating the listener audience." – Reed Hundt, former Chairman of the Federal Communications Commission (FCC)
On Greater Choices and Lower Prices …
"[SIRIUS and XM] have promised to offer consumers more choice at lower prices after the merger. Service offerings that let subscribers pay less would permit even more Americans to experience satellite radio." – Edward Cardinal Egan, Archbishop of New York
On Innovation …
"More broadly, this merger proposes to combine two small players in the audio entertainment market. As a result, the merger will bring greater vitality and financial resources to this upstart technology. Allowing this to happen will, in turn, spark a new generation of services and products with more advanced and user-friendly features. Consumers, of course, will be better off as a result." – Julian C. Day, Chairman and Chief Executive Officer, RadioShack
On Benefits to Consumers …
"General Motors believes the proposed merger is and will be in the public interest because the merged company will be able to offer consumers expanded programming choices and a broad range of service packages, including packages at lower prices." – Richard M. Lee, Executive Director of Satellite Radio Services, General Motors
On the Audio Entertainment Marketplace …
"The relevant market for competition purposes is the entire marketplace for audio entertainment, including terrestrial radio, Internet radio and Internet-protocol enabled applications. The relevant market clearly includes all of terrestrial radio, as evidenced by repeated statements by leading broadcast companies that they are in competition with satellite radio." – Congressman Rick Boucher (D-VA)
