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Technology Stocks : Full Disclosure Trading
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To: Gottfried who wrote (9349)10/6/2004 2:41:18 PM
From: Sam Citron   of 13403
 
OT "Howard Stern Heads to Satellite Radio"

I think you are missing the forest for the trees. The bump in SIRI on the HS migration is partially a reflection of a powerful phenomenon known in law as the "race to the bottom". It is the same reason why companies tend to incorporate in Deleware or music swapping software companies or eGambling parlors tend to base their operations in Scandinavia or the Caribbean. They migrate to where the grass is greenest and the rules are the laxest.

Speech is freer in satellite radio because the FCC does not apply the same content standards there. If subscription radio attracts a shock jock like HS in order to be free of heavyhanded FCC content regulation, it will attract others as well who may happen to more directly reflect your own viewpoint. It makes subscription radio more valuable in general as a regulatory arbitrage play and further confirms the "death of radio" argument as a graveyard for the boring and the bland.

Sam
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