Update: XM/Sirius Merger

The proposed merger between satelite radio giants Sirius and XM is still under review, but may be nearing a ruling from the Federal Communications Commision. One main facet of the proposal is whether or not the merger would create a monopoly, which antitrust laws deem illegal. Given that Sirius and XM are two of only a handful of satellite radio providers, it would seem as though the merger would create complete dominance in the industry. On the other side of the coin, satellite radio in its entirety may not be considered its own industry, but rather one relatively small portion of the radio industry as a whole. Satellite radio does in fact make up a very small portion of the whole radio market, and both companies are currently losing money. If the merger does not go through, both companies have stated that they will survive on their own and continue conducting business as usual. The Radio Business Report (RBR) makes their opinion known by saying "We'd strongly argue that the services are unique, and since their continued survival as competitors is not an issue there is no reason to grant a government-sanctioned monopoly."

After analyzing a combination between XM and Sirius, one would conclude that the sheer amount of different channels would surely dessimate the competition due to the mega-companies seemingly endless amount of content. Mark Ramsey argues that the number of channels availible on a radio service has nothing to do with its power. He states, "The issue has nothing - nothing - to do with how many channels you have. This is an old school understanding of a new media world."
No matter who weighs in on this situation, the only opinion that really matters is that of the Federal Communications Commision. They will most likely see the situation differently from the Radio Business Report and allow the merger to proceed, to the delight of both XM and Sirius. If merged, the two would be able to pool their resources and offer aggregated content, as well as eliminate their main competitors, which is a win-win situation in any business environment. Mark Ramsey believes that the merger will be approved. In fact, he adds that the merger won't have as big as an efect as most people think.

Sources:
http://www.hear2.com/
http://en.wikipedia.org/wiki/Satellite_radio