Originally posted by: SoulAssassin
I disagree that there is competition with terrestrial radio....yes to a certain degree but it's a different animal. I don't have to directly pay for terrestrial radio which in my humble opinion makes it different. There is a limited amount of competition from mp3 players but I'm not going to get baseball or football games on my ipod. It's a different animal.
I disagree with your comment.
When you're in a car (which is the primary audience for Satellite radio), you can only listen to one source of entertainment at a time, whether it be Sat. Radio, Terrestrial Radio, CD's, or MP3 players. They are all effectively competing for your ear and none can effectively be enjoyed at the same time.
Taken in pertinent part from Wiki;
http://en.wikipedia.org/wiki/Monopoly (emphasis added)
In Economics, monopoly (also "Pure monopoly") exists when a specific individual or enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it. [1] Monopolies are thus characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods.
IMO, the substitute good in the present case isn't Sirius vs XM, its the other media competing against satellite radio for your undivided attention while in your car. Sat Radio vs. Terrestrial Radio vs. MP3/iPod vs. CD's
The very fact that the NAB (National Association of Broadcasters - aka Terrestrial Radio) is so staunchly opposed to the merger exemplifies its place as a direct competitor to satellite radio as a whole. If they weren't a competitor and a "substitute good", why would they be so vocal against it?
As for your comment about baseball/football games, sure Sat Radio dosen't compete with an iPod in this genre, but it heavily competes with local radio stations who arguably still have a higher base of listeners.