While satellite radio is not a direct replacement for local terrestrial radio, the two services do compete at the national level for advertising, according to NAB President/CEO David Rehr.
In a letter to Representative John Conyers, chairman of the House Judiciary Antitrust Task Force, Rehr stated: “Every person who listens to satellite radio is one person not listening to a local radio station, which affects a station’s ratings, and, in turn, ad revenues.”
In the letter, Rehr reiterated several points he recently made when testifying before the task force opposing issues related to the proposed merger of XM and Sirius.
The letter is here:
www.nab.org/xert/corpcomm/pressrel/releases/031207_DKR_Conyers_XMSIRI.pdf