NY Post: Carmel Group Study Questioned
April 6, 2007 at 5:46 AM (PT)
THE NEW YORK POST reports an influential and popular satellite radio industry blog has become the latest critic to slam research firm THE CARMEL GROUP's controversial analysis of the SIRIUS and XM merger, accusing the firm of contradicting itself about the competitive landscape.
In a posting published WEDNESDAY on ORBITCAST.COM, Editor RYAN SAGHIR charges that in an OCTOBER 5, 2005 article THE CARMEL GROUP Chairman JIMMY SCHAEFFLER cites MP3 players, terrestrial radio and Internet radio as competitors to satellite radio.
It's interesting that he has an NAB-commissioned report that says these services aren't competitors to satellite radio and takes the exact opposite position in a non-commissioned report.
However, in the report THE CARMEL GROUP issued TUESDAY (NET NEWS 4/3) about the SIRIUS-XM deal, SCHAEFFLER seems to change his tune, saying those devices weren't competitors. THE CARMEL GROUP's report, sponsored by the NAB, argues against the $11.4 billion merger.
"It's interesting that he has an NAB-commissioned report that says these services aren't competitors to satellite radio and takes the exact opposite position in a non-commissioned report," SAGHIR said.
But SCHAEFFLER points out, and the report clearly states, MP3 players and other devices may become competitors to satellite radio in the future, but they aren't mature enough today to be legitimate rivals -- meaning at the time SIRIUS-XM filed their merger documents.
SCHAEFFLER believes the FCC will reject the merger because its "long-term, consistent policy has been to look at the competitive landscape at the time of the merger filing."