These days, music lovers, talk radio junkies, and sports aficionados have more choices than ever when it comes to ways to access their favorite content. Broadcast radio, high definition (HD) radio, Internet, podcasts, and a host of mobile devices, all compete to win the consumers affections.
This buffet of choice should inform the debate over whether the Federal Communications Commission (FCC), should allow XM Satellite Radio Holdings and Sirius Satellite Radio to merge.
Those who oppose the merger take a ridiculously narrow view of the marketplace, “…portable radio service on a nationwide scale to geographically dispersed audiences.” They claim a merger would leave only a single provider in the “marketplace.” That may be the case in a marketplace so narrowly defined as to not pass the giggle test. But even the broadcasters seem to understand how rampant competition has become. They have ramped up their lobbying presence just on this issue—to attempt to deny a merger of two currently unprofitable companies because it would pose too much competition for traditional “terrestrial radio.”
Opponents also argue that traditional radio does not have a nationwide reach, or really that no “station” has a national reach. But don’t terrestrial radio stations compete in the national marketplace? Of course they do—just consider Clear Channel or Radio One which brag of national programming and coast-to-coast reach. What’s more, they also seek to increase the share they have in any one market.
In fact, HD radio will widely expand the reach of broadcasters giving them new, clearer stations with greater reach (although other FCC regulations hinder competition by limiting the broadcast area).
This should be an easy decision for the FCC. Competition is rampant, technology is far outpacing regulation so the competitive choices will only continue to expand, and this is a clear case where government can either impede the market or let it flourish.
The FCC has a decision to make–the limited radio experience of yesteryear or a dynamic and innovative marketplace.