Tilted Forum Project Discussion Community - View Single Post - Broadcasters seek ban on local satellite radio

seretogis · 04-18-2004, 06:55 AM

Quote:

WASHINGTON, April 16 (Reuters) - U.S. radio broadcasters have asked federal regulators to bar rival satellite radio services from offering content tailored to local markets, according to a petition obtained on Friday.

The National Association of Broadcasters, which represents radio conglomerates like Clear Channel Communications Inc. , filed the request due to concerns the up and coming satellite services are trying to replace local radio outlets.

Both XM Satellite Radio and Sirius Satellite Radio Inc. now offer traffic and weather for several cities on its national service, but are barred from using ground-based transmitters that extend service into hard-to-reach areas to air programming aimed specifically at a local market.

"This foray into local content is directly contrary to ... repeated and express promises that satellite radio service would be limited to delivering national programming to serve the unserved and underserved," according to the petition filed this week and obtained by Reuters.

NAB said the two companies may also be developing satellite radios that can receive advertisements, news and other content targeting a local market by using Global Positioning Satellite (GPS).

The broadcasters' group demanded that the Federal Communications Commission, which licenses satellite services, explicitly ban their rivals from using any technology to offer content in one area that is different from another location.

The NAB also asked that the FCC bar XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. from offering local services on nationally distributed channels.

An FCC spokeswoman said the agency is reviewing the petition.

The satellite companies, which offer their service on a monthly subscription basis, have denied they are violating the terms of their licenses.

"The licenses we were given were for nationwide distribution of our content and that's what we do," said Sirius spokesman Jim Collins.

That sentiment was shared by XM spokesman Chance Patterson who noted that its weather and traffic information provided a public service to subscribers and that the company also offers alerts about kidnapped children.

"The NAB wants to quell content that provides a public service and that's wrong," he said. Together the two companies have almost 2 million subscribers who receive 100 channels of entertainment, music, news and sports.

Entercom Communications Corp. , the fourth-largest U.S. over-the-air radio company, has been running advertisements poking fun at satellite radio services, roasting the $10-$12 monthly subscription rate as well as lack of local information and spotty signals when traveling between buildings.

(Additional reporting Michael Learmonth in New York.)

This seems ridiculous to me, not to mention disgusting if the FCC actually goes along with the NAB. XM/Sirius are scaring the hell out of Clearchannel and co. because they are doing a better job and don't have to rely on [as many] commercials. This is a desperate attempt by CC and other massive conglomerates to retain control on their near-monopoly of the public radio market.