Fresh50
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Why Terrestrial Radio can't fight Satellite Radio's definition of a competitive market
Here's a snippet from CBS's 10-K (with emphasis added):
Radio Competition.
The Company's radio stations directly compete within their respective markets for audience, advertising revenues and programming with other radio stations including those owned by other group owners such as ABC Radio, Clear Channel Communications, Cox Radio, Emmis Communications, Entercom and Radio One. The Company's radio stations also compete with other media, such as broadcast, cable and DTH satellite television, radio, newspapers, magazines, the Internet and direct mail.
The radio industry is also subject to competition from two satellite-delivered audio programming services, Sirius Satellite Radio and XM Satellite Radio, each providing over 100 channels of pay digital audio services. Sirius and XM sell advertising time on some of their channels and compete with the radio industry for programming.
The Company's radio stations face increasing competition from audio programming delivered via the Internet and from consumer products such as portable digital audio players. These new technologies create new ways for individuals to listen to music and other content of their choosing while avoiding traditional commercial advertisements. An increasingly broad adoption by consumers of portable digital audio players could affect the ability of the Company's radio stations to attract listeners and advertisers.
The statements made in these SEC filings would constitute admissions under the law. So they can't just go ahead and oppose a market definition to just the satellite radio market (making it a 'monopoly'). They would look pretty damn silly if they try to contradict themselves.
The biggest "hurdle" in the merger is the definition of what is a "relevant market" and what constitutes a competitive marketplace. But CBS Radio has actually already adopted the same definition that XM and Sirius are advocating.
This is pretty big stuff in my opinion, and I hope the media picks up on it. :blob:
Here's a snippet from CBS's 10-K (with emphasis added):
Radio Competition.
The Company's radio stations directly compete within their respective markets for audience, advertising revenues and programming with other radio stations including those owned by other group owners such as ABC Radio, Clear Channel Communications, Cox Radio, Emmis Communications, Entercom and Radio One. The Company's radio stations also compete with other media, such as broadcast, cable and DTH satellite television, radio, newspapers, magazines, the Internet and direct mail.
The radio industry is also subject to competition from two satellite-delivered audio programming services, Sirius Satellite Radio and XM Satellite Radio, each providing over 100 channels of pay digital audio services. Sirius and XM sell advertising time on some of their channels and compete with the radio industry for programming.
The Company's radio stations face increasing competition from audio programming delivered via the Internet and from consumer products such as portable digital audio players. These new technologies create new ways for individuals to listen to music and other content of their choosing while avoiding traditional commercial advertisements. An increasingly broad adoption by consumers of portable digital audio players could affect the ability of the Company's radio stations to attract listeners and advertisers.
The statements made in these SEC filings would constitute admissions under the law. So they can't just go ahead and oppose a market definition to just the satellite radio market (making it a 'monopoly'). They would look pretty damn silly if they try to contradict themselves.
The biggest "hurdle" in the merger is the definition of what is a "relevant market" and what constitutes a competitive marketplace. But CBS Radio has actually already adopted the same definition that XM and Sirius are advocating.
This is pretty big stuff in my opinion, and I hope the media picks up on it. :blob:
