Next stop is the FCC. Chief Kevin Martin is vocally hot on competition, so he'll probably squeeze them pretty hard on following through, though he's likely to take the same stance as the DoJ: The environment's so scrambled right now, a single satellite radio company isn't really going to harm consumers. And if they do raise prices and start sucking, people have plenty of other options to abandon them for. On the other hand, they were both already on life support, so this jolt might not be enough to fully re-animte them. [Breitbart]

Moreover, Arbitron exec Bill Rose told the Times, "Heavy users of digital media don't think, 'If I'm doing this more, I'm doing the other thing less.' "

This directly contradicts what NAB President David Rehr wrote in a letter to the chairman of the House Judiciary Antitrust Task Force in March: "Simply put, every person who listens to satellite radio is one person not listening to a local radio station..."

Isn't there a way to let the customers decide what they want? If the XM/Sirius lovechild is as horrible as Rehr makes it out to be in his anti-monopoly spiel, they'll simply quit paying for it, and look for programming elsewhere, won't they? This study implicitly backs that up, beyond its more obvious conclusions. When it comes to media consumption, perhaps people are just little bit smarter than you've giving them credit for, Mr. Rehr. – Matt Buchanan

Digital Subscribers Like Free Radio, Too [NYT]

His full remarks on satellite radio after the jump.

This next clip is Mel Karmazin, familiar to some of you as the CEO of Sirius satellite radio, testifying before Congress recently. As you will see, he is attempting to define moving from two companies to one company as a merger, not the duopoly to monopoly that it is.

And on this point, Mel and I agree.

This merger will not be approved.

No matter how much Mr. Karmazin and everyone else at Sirius and XM use the word, it is not a merger they seek. It is a monopoly. It is a government sanctioned monopoly.

Now some of you might not be aware I am an economist by training. I ask you, when has a monopoly ever served the interests of the consumer?

In 1997, when the FCC authorized two nationwide satellite radio operators, it specifically prohibited them from merging. The bad business decisions of XM and Sirius — should not be rewarded with a government bailout in the form of a monopoly.

This certainly would not be in the consumer's benefit.

It will be a huge consumer headache because the companies use two different technologies which are not compatible with each other. Like beta and VHS. No, this is not about the consumer. It is not about advancing technology. It is about lining the pockets of financiers and corporate executives.

A monopoly is a monopoly is a monopoly, and we at NAB will continue to adamantly oppose it.

Of course, everyone has vested interests even as they spout that they're only acting on your behalf. Whether or not the merger is truly anticompetitive or totally consumer friendly remains to be seen, though if Karmazin keeps his word, it's looking more like the latter. – Matt Buchanan

The NAB: A history of hypocrisy [Orbitcast]

[via Radio Ink via Orbitcast]

What kind of concessions? How about the one everybody wants to hear: price controls. Yep. He added that they'll "leave it to the regulators" to enforce promises they're making about "more programming and better services at lower prices." Whether or not you trust the regulators is another story though, I suppose.

Also combatting suggestions that the new company would be a monopoly, Karmazin repeatedly emphasized that within the context of the broader market—traditional radio, internet radio and mp3 players—they are not.

There is, I feel, some weight to his argument, as much like it sounds like hot air. I have an iPod—I don't think about satellite radio, though I might if I didn't. There's enough competitive pressure coming in from all sides, it seems, to drive them to keep things balanced, lest subscribers flock elsewhere. Whether or not Congress and the FCC buys that argument remains to be seen. – Matt Buchanan

Sirius Chief Talks of Ways to Get XM Deal Approved [NYT]