If We Must, We'll Give You a Choice...
It's funny what companies can do when they feel they have to. In a filing yesterday, Sirius and XM told the Federal Communications Commission they'll embrace "a la carte" pricing of satellite radio channels if their proposed merger is approved.
The New York Times reports that the two companies - currently losing billons of dollars annually, and desparate for a merger - are willing to offer consumers the ability to select which channels they want, and to pay only for those channels.
FCC commissioner Kenneth Martin has been pressing the cable television industry for similar changes, to no avail.
As the Times notes:
The announcement, coming the day before the period for receiving comments on the proposal closes at the Federal Communications Commission, was an effort to persuade the agency that the merger was in the public interest. Several of the five commissioners, including the agency’s chairman, Kevin J. Martin, have raised significant concerns about the deal because it would result in the creation of only one satellite radio service.
When the deal was announced this year, Mr. Martin said the companies would have a high hurdle to overcome in persuading the commission that it was in the public interest.
The proposal is tailored to reflect two major policy campaigns that Mr. Martin has led. He has urged cable television and satellite radio services to give consumers greater choices by offering à la carte price plans. And he has repeatedly denounced violent and vulgar programs, while suggesting that à la carte plans could solve that problem.
The way the announcement deals with these issues increases the chances that the merger could ultimately be approved, although analysts said they believed it remained a close call.
It will be interesting to hear cable operators explain why they can't embrace "a la carte" pricing when cash-strapped XM and Sirius are doing just that.
- Login to post comments
- Printer-friendly version
The Open MIC Blog
In the News...
 |
 |
 |
|
||
|
|
||
 |
|
 |
|
||
Shareholders of AT&T Inc. have filed a proposal calling for the company “to publicly commit to operate its wireless broadband network consistent with network neutrality principles” that would maintain open access to the Internet on wireless networks.
The filing comes only weeks before implementation of new Federal Communications Commission rules on network neutrality that provide a broad exemption for wireless broadband networks – the fastest growing segment of the Internet.
Here's the complete text of a proposal introduced by AT&T shareholders for consideration at the company's annual meeting in April 2012.
The senators advocate for a shareholder opportunity to "tell corporate boards that net neutrality is an important issue and telecommunications companies should ensure equal, nondiscriminatory access to all content on their networks."