Toyota Motor North America, which offers both XM and Sirius satellite radio with its cars, endorsed the proposed merger of the two services in a statement filed with the Federal Communications Commission.
Maybe. Sort of.
"Toyota's primary concern is that the merger not threaten the continued viability of equipment already installed in vehicles, or require excessive and time consuming investments in developing and deploying new hardware," the corporation wrote to the FCC on July 9th.
"However, if compatibility with installed hardware can be maintained, customer choice enhanced, and prices lowered due to efficiencies, the merger may be in the best interest of the consumer."
The filing expresses hope that the two radio satellite services will continue to operate, given the number of customers who have bought one or the other for their Toyota, Lexus, or Scion vehicle.
"Toyota is particularly concerned that the expectations of customers who have already purchased a Toyota vehicle equipped with satellite radio be satisfied going forward," the corporation's comment explains.
The filing also observes, as have other commenters, that even if XM and Sirius merge, the development of an interoperable receiver—that is, a receiver that accesses both XM and Sirius programming—could be difficult and expensive.
"Toyota would be concerned if the expense of such development were to result in an increase in the price of exiting services or hardware."
Finally, the statement notes that Toyota has invested quite a lot of money in inventories of XM satellite receiver parts, head-units, and antennaes.
"If the merger requires changes to operations of inventories, this could increase Toyota's costs to the detriment of Toyota and its customers."
Otherwise, go for it.
Other XM Sirius comments:
The National Association of Broadcasters [0], disagrees:
" . . . even if satellite radio could be properly characterized as a luxury and there were a policy of limiting the review of mergers involving luxury goods and services, federal officials should consider the evolution of the market and the fact that decisions over institutional arrangements made today affect the market in the future. Consider the history of the introduction of communications media, including various products and services the merger parties erroneously include in the same relevant antitrust market as satellite radio. Initially (paired-wire) telephones could be afforded only by the wealthy. But now they are ubiquitous - and essential. In the early days, (over-the-air) radios were very expensive, but of course now they are widely available. In fact, the histories of (over-the-air) television, cellular telephone services, personal computers, VCRs, DVDs, DBS, MP3 players, and Internet access all follow the same pattern: when introduced, the product or service is relatively high in price and is purchased principally by those with high incomes; but quickly prices fall and the product or service is purchased by a much broader set of lower-income users.
The relevance of this pattern of adoption to the proposed XM/Sirius merger is that decisions made by federal officials on the proposed merger will affect not only today's consumers of the service, but those who might use the service in the future. If federal officials approve the merger, they will limit the market's expansion and foreclose many of lower incomes who otherwise might be consumers of the service in the future."
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