Will XM & Sirius radio create a monopoly?
There have been several articles lately about the possible merger between XM and Sirius radio. A current article in Forbes discusses the situation and the possible outcomes. The argument is if XM and Sirius merge, will a monopoly be created? I think that the answer to this question is no. However, it may depend upon what time horizon is looked at. Currently, satellite radio, in my eyes, is considered to be a competitor to land-based radio, I-Pods and other hand held devices, and internet radio. It seems that if a business takes customers away from another business, they are competitors. So, if XM and Sirius merge, they are still left with competition. Thus, they would not become a monopoly. However, this may change depending upon the future. If satellite radio is the future of radio and other music devices, then this possible merger may be the beginning of a monopoly. On the other hand, many people do not like the idea of paying for radio. Because of this market segment, it might not be possible for XM and Sirius to create a monopoly. Free radio and other music devices may always be in demand. In the end, it must be determined who satellite radio competes with.
Posted by LANDS at 3/20/2007 09:31:00 PM