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Sirius, XM Agree to Unite
LOS ANGELES Sirius Satellite Radio and XM Satellite Radio said Monday that they would merge to create a $13 billion entity, a scenario that
would end an expensive bidding war for talent that the two have been waging but also would invite extensive scrutiny from lawmakers and terrestrial
radio broadcasters. Laws prohibiting the two to combine have been in place since each were granted licenses about a decade ago, in effect creating a
mandated duopoly because regulators had no intention of allowing other satellite radio operators to spring up in the U.S. Nevertheless, laws can be
tweaked to grant permission for the two money-losing companies to merge, and that has competitors nervous. Dennis Wharton, evp at the National
Association of Broadcasters, which represents traditional radio, said he'd be "shocked if federal regulators permitted a merger of XM and Sirius."
Experts have been saying for months that approval of a combined XM-Sirius depends on how the FCC and anti-competition regulators view the industry.
If considered broadly, with digital music players and the Internet seen as competition, approval could be granted. However, if the government views
competition for XM and Sirius stemming only from each other and from free radio, then approval isn't likely.
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Joost to Deliver Viacom Content
NEW YORK Just weeks after a much-publicized standoff with YouTube, Viacom has entered into a partnership with upstart Web video company Joost
to deliver content from MTV, VH1, BET and Paramount Pictures, among others, via Joost's online TV platform. Viacom said it plans to offer a wealth of
free shows via Joost, ranging from MTV's Laguna Beach, Beavis & Butthead and The Real World; VH1's Flavor of Love and
Surreal Life; and BET's Comic View, along with programs from Logo, Comedy Central, MTV2 and CMT. The company also plans to release
several full-length Paramount movies on the new service, which will officially launch during the first half of 2007 following an extended beta-test
period began last fall. Theoretically, like YouTube, Web users would be able to watch on-demand clips from their favorite shows whenever they want
using Joost. But unlike YouTube, Joost users can only view content when using a downloadable Joost player.
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Supporting Role for Mini
DETROIT In what might be called product placement in a brand's own ads, BMW Mini is rolling out a print, cinema and outdoor campaign for a
series of Webisodes featuring the Mini 2007 Cooper S, but don't mention it. Consumers can see the car in billboards, in-cinema trailers and print ads
for Hammer and Coop, a spoof of '70s buddy-cop shows like Starsky & Hutch. The ads don't mention the brand, though the "Coop" in the
title refers to it. (Hammer is Bryan Callen, a former Mad TV regular. He speaks Knight Rider-style via the car's radio as he handles bad guys,
car chases and tricky driving maneuvers.) Butler, Shine, Stern & Partners, Sausalito, Calif., handles Mini's account. "It's not as important that
Mini be in the front of everything here," said Mini marketing chief Jim McDowell. "We're perfectly happy to stand behind and let the story be told.
And the car is part of the story."
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Grouper Preps 'Spider-Man' Promo
NEW YORK Columbia Pictures has tapped user-generated video site Grouper Networks to spearhead a contest that will name two winners to report
Spider-Man 3 news and help drive ticket sales for the movie's May 4 release. Called "The Face of the Fan," the competition is Columbia's third
joint effort with Sony Pictures Entertainment brethren Grouper, a portal that lets users produce and share videos. Sony acquired Grouper in August.
The winners will serve as correspondents, creating videos with Spider-Man updates as well as special promos. Grouper will host and serve the
content, which will be disseminated across the Internet. The contest is part of a "very aggressive" interactive campaign to tout the franchise,
according to Dwight Caines, evp, worldwide digital marketing strategy, Columbia TriStar.
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