Satellite radio merger on tap

By RANDY DOTINGA - For the North County Times | Wednesday, July 2, 2008 12:15 PM PDT ∞

If you get cable television, you may have asked yourself the eternal question: Why on earth am I paying for all these darned channels?

There are channels for Spanish-speakers, golfers, gay people, evangelicals and game-show fans. And while there may be three people in the entire country who fit all those categories, many of us still pay for each and every one of those channels.

Consumer advocates have been pushing for "a la carte programming" for years. Now, buffet plans may finally be on tap in the world of broadcasting ---- but not in the land of TV.

As part of his conditions for allowing the XM and Sirius satellite radio networks to merge, Federal Communications Commission Chairman Kevin Martin is reportedly saying the companies should allow a la carte plans, and they're on board with his proposal. And that's not all.

At Martin's urging, the networks have agreed to put a cap on prices for three years and reserve 24 channels for noncommercial and minority-run programming.

But while the combined number of subscribers for both networks is now at an impressive 18 million, there's no guarantee that satellite radio will remain viable after a merger. Nor, for that matter, is the merger a done deal.

"There is still a chance that the conditions to be imposed on a merger might be hard for the satcasters to swallow, even though they are talking in a cooperative spirit at the moment," said Jeffrey McCall, a professor of communication at DePauw University who tracks the radio industry.

He said it's also possible that the full FCC board may still nix the merger.

But if the merger does go through, there will be some good news for satellite listeners.

Once you go through all the hassle of buying a stereo and finding someone to install it in your car, satellite radio is a fairly good deal. Both XM and Sirius charge $12.95 a month, and it sounds like a merger would keep prices stable for a while.

Customers may still find the prices too much to bear, however.

"A lot of consumers are having a hard time with the concept of paying for radio shows," said Eric Klinenberg, an assistant professor of sociology at New York University who studies radio. "Remember, we're living in the age of free content, especially online. The satellite model flies in the face of that, and it's a tough ride."

And, of course, nothing is forever.

"A merger could turn bad for consumers once the price freeze term expires," McCall said, "and a merged company could hike prices with no real competing service to hold them back."

After the merger happens, some channels and programs currently offered by the networks will disappear.

"If there are six country stations on XM and six on Sirius, I would expect they will be collapsing some of those offerings," said Jason Hollins, vice president of Edison Media Research.

On the other hand, listeners will be able to hear some programs and hosts that were previously only offered on one of the networks.

A la carte programming, meanwhile, could provide listeners with lots of plans to choose from ---- maybe.

"The devil's in the details," Klinenberg said. "If it's done properly, consumers will have genuine financial incentive to get packages that suit them. But I've seen a la carte options in other fields that essentially reward those who get the most expensive package and punish everyone else. It would be a shame if that happened here."

Some post-merger hassles will be inevitable. McCall said some listeners still encounter interference, even though satellite radio is supposed to offer clear signals. And portable satellite radios remain unreliable.

Still, the future for satellite radio may be bright. It has, after all, succeeded in many ways.

"Consumers can get access to lots of commercial-free programs, and can hear a variety of sports, talk, and music that has never before been available," Klinenberg said. "If you're willing to pay for the service, you'll probably be happy with what you get."

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FM 94/9's "Big Sonic Chill," one of the more creative shows on the local dial, has a new host. Amanda Thorne, a veteran of radio stations in San Francisco and Seattle, is stepping in to replace Midori, who hosted the show for several years.

"Big Sonic Chill," which airs from 10 p.m. to 2 a.m. Sundays through Fridays, specializes in "chill music," songs with slower rhythms and ethereal vibes. The format is designed for people who are studying, relaxing or engaging in other late-night activities.

According to Midori's MySpace page, the station declined to renew her contract at the end of April and didn't give her a chance to say goodbye to listeners.

Midori writes that she will make sure her next broadcast job "is both a good fit for my craft and talent, and more importantly, that I am respected and supported in my work environment."

All this writing about buffet plans has made Randy Dotinga hungry. E-mail him at NCTimesRadio@aol.com.

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