Things seem backward in Audio Entertainment (AE) World.  XM-Sirius (or Xirius, as Doc Searls called it in his blog) looks like it might fall apart because of…what?  FCC pride?  That’s one explanation.  They created a rule at satellite’s outset saying one entity couldn't own both licenses.  But the landscape has changed so much since then that it’s preposterous to believe a merged entity represents a real anti-competitive threat.  Now internet radio stations, per the infinite wisdom of the Copyright Royalty Board (CRB), will face a royalty fee per stream (yes, each stream), making business, as many of them know it, potentially impossible. 

My internet radio site of choice is KCRW.com.  On the air today they begged for listeners to begin subscribing, or face a world without KCRW’s unique programming.  And believe me, given the CRB’s decision, I’m thinking about it.  I love KCRW.  It’s my AE source of choice.  Good enough to pay for, in fact.  But if I do so, I can almost guarantee I won’t subscribe to Xirius in the near future, especially considering the $10/month fee to my Napster subscription.  Why? Because I can’t justify subscribing to 3 (three!) AE sources at this point.  So isn’t that enough to convince the FCC that Xirius is anything but a monopoly? 

A reader wrote last week that the comparison of internet radio to Xirius is irrelevant because satellite radio mostly occurs in cars.  I take exception to that.  At our DMW office we have Sirius.  And yes, satellite’s great, but I also listen to KCRW and Napster in equal amounts at work.

What happens when PCs built in to automobiles become more common?  Anyone who attended CES this year can attest it’s not far away.  In fact, many people, like Jay Leno, already have it.  KCRW.com and Napster will soon be at the tip of my fingers while I’m driving.  And that $10 Napster subscription?  How will satellite compete with that?  By giving me Howard Stern?  I’m a huge fan of the guy, but it’s not enticing enough for the extra bucks.

And what about internet connectivity on phones?  When I can get all the music I want on my mobile for a $10 subscription fee, will I ever buy a 99 cent song again?  What would be the point?

Anyhow… I’m sure I’ve missed plenty of important points here.  So I ask you, Reader, what’s your take on all of this?

Scott Goldberg

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