Sirius CEO Faces Skeptics in Senate

A Senate committee chairman said Sirius Satellite Radio Incorporated has "a steep hill to climb" in showing that its proposed purchase of XM Satellite Radio Holdings Incorporated will not hurt competition in the audio entertainment market. Sirius Chief Executive Mel Karmazin told members of the Senate Commerce, Science and Transportation Committee a combined satellite radio provider would benefit consumers by letting them access both companies' services for a diminished price. "Given the public interest in promoting competition and maximizing a diversity of media outlets, we should be skeptical of claims that new technologies necessarily 'change the equation' and provide competition sufficient to restrain monopoly power," said Committee Chairman Daniel Inouye, D-Hawaii. Inouye is the second Senate chairman to express doubts about the merger in as many months. Senator Herb Kohl, D-Wis., chairman of a Senate Judiciary subcommittee on antitrust, aired misgivings about the deal during a March hearing.

News source: Physorg

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how do you know that pricing will go up, I'm sure if it does people will cancel their subscription like me. Before we say that prices will go up, maybe we should wait until they merge (and they will merge) and then see what happens. You do also have another alternative and its called free radio AM/FM radio.

But it won't, as they will raise the prices and people will have no other alternative. Abuse of a monopoly is practically a rule of economics.

zivan56 said,
But it won't, as they will raise the prices and people will have no other alternative. Abuse of a monopoly is practically a rule of economics.

what monopoly do they have? it would be 12-13 million subscribers compared to hundreds of millions who listen to terrestrial radio or mp3 players.

their whole point is to gain more customers, and theyd be able to do that with offering all of services available on satellite for lower price, not higher.