When satellite radio broadcasters Sirius and XM argued that they should be allowed to merge into a monopoly because they actually compete against terrestrial radio, iPods, cellphones and other listening choices, I didn't buy it.
Now, like the song says, I'm a believer.
The Justice Department gave its blessing this week to a $4.6-billion buyout of XM Satellite Radio Holdings Inc. by rival Sirius Satellite Radio Inc., despite intense opposition from consumer groups that rightly argued that this would give a single company control of the market.
The Federal Communications Commission still has to weigh in, but the betting line among telecom analysts is that this is a done deal. The Justice Department's antitrust investigation was seen as the more formidable hurdle.
Justice basically bought Sirius' and XM's pitch that consumers won't be harmed by a merged company because they have so many other audio options available to them.
This, in turn, will serve as a deterrent to Sirius-XM (or whatever it's called) jacking up prices willy-nilly once the company has the satellite radio field to itself.
In a lengthy statement, the Justice Department's antitrust division "concluded that the evidence does not demonstrate that the proposed merger of XM and Sirius is likely to substantially lessen competition, and that the transaction therefore is not likely to harm consumers."
I was wary of that idea when the merger was first announced in February 2007. My gut told me that a monopoly is a monopoly, and if a single company controlled satellite radio, customers would be held hostage to whatever pricing or conditions the company set.
Then I moved to Los Angeles. And I started living half my life on the freeway. And I became a Sirius subscriber.
Now I can say without hesitation that commercial-free radio is a godsend and well worth the $12.95 a month. But I can also say that I wouldn't think twice about canceling my subscription if the price crept only marginally higher.
I'd have no problem going back to flipping between KPCC-FM and KRTH-FM on my terrestrial radio dial and filling in the gaps with my too-voluminous collection of CDs. Or I'd finally break down and purchase that iPod, and keep all my tunes at my fingertips.
In other words, I'd do exactly what Sirius and XM said I'd do.
