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Tuesday, March 20, 2007

ZDNet: NAB Is Fighting The Merger On Selfish Anti-Competitive Grounds

The NAB battles the XM / Sirius merger
Posted by John Carroll @ 8:48 am, www.zdnet.com

Engadget caught this ad funded by the National Association of Broadcasters (NAB) which lampooned the proposed merger of XM and Sirius. Unfortunately, this got them into hot water with MasterCard, whose well-known "Priceless" campaign was the source of the NAB's knock-off, so that particular campaign was pulled.
It did bring to my attention, however, that the NAB was putting lobbying dollars into blocking the XM / Sirius merger, which if you think about it, is rather odd. The NAB has nothing to do with satellite radio. From the NAB web site:
The National Association of Broadcasters is a trade association that advocates on behalf of more than 8,300 free, local radio and television stations and also broadcast networks before Congress, the Federal Communications Commission and the Courts.
Why should a consortium of companies that compete with satellite radio stir up antitrust fears? If we were to distill antitrust to its fundamentals, it's supposed to prevent companies from acquiring enough market control to charge artificially high prices. Should the newly consolidated satellite radio broadcasting company opt for higher prices, however, wouldn't that be an extremely good thing for the NAB, given that it would make their mostly free offerings that much more competitive?...read more: here

3/20/2007 09:00:00 PM


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