The U.S. Department of Justice recently approved the proposed merger of Sirius and XM, the nation's two satellite radio providers, raising questions about the regulation of the media marketplace. Central Michigan University School of Broadcast and Cinematic Arts faculty member Heather Polinsky, an expert on media economics and media policy, is available to comment on the proposed merger.
A few of Polinsky's initial thoughts on the subject:
* "Many parties have come forward against the Department of Justice approval, from the National Association of Broadcasters to members of Congress to consumer and media advocacy groups. The prime complaint is that the DOJ is allowing a government-sanctioned monopoly, as Sirius and XM are the only satellite radio service providers. However, the DOJ has concluded that the audio services marketplace is sufficiently competitive as satellite radio must compete with Internet radio, iPods and other audio services."
* "If the Federal Communications Commission approves the merger, it is likely that members of Congress will propose legislation to prevent the merger, as many legislators do not agree that the audio services marketplace is adequately competitive to allow a merger between the only two satellite radio providers. By approving the merger, the FCC would also give the National Association of Broadcasters more ammunition in its fight to get the FCC to relax radio and media ownership regulation even further."
* "This (proposed merger) also leaves open the question of why the Department of Justice and others were against the suggested merger between satellite television service providers DirecTV and EchoStar in 2006."
Polinsky, the head of the audio unit of Central Michigan University's School of Broadcast and Cinematic Arts, is an expert on audio recording technology and the convergence of computers and broadcasting, including new media technologies. She assists with WMHW-FM, the student radio station, and also advises the school's record label, Moore Media Records. Polinsky teaches courses in basic and advanced audio production, multimedia audio postproduction, and telecommunication media policy.
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