Shocking developent

Radio Shock Jocks Opie and Anthony apologized for a really, really bad segment that aired on their show (won't go into it here, its in the link). They also face disciplinary action from XM Radio (their boss).

What's interesting is that satellite radio is an FCC free zone. Yet, somehow, the trappings of FCC oversight are still there. Someone says something really stupid, people get upset, said person issues a public apology and faces some sort of penalty from their boss. Weird how all that happened without the aid of government bureaucracy.

However, XM and cable are both starting to draw the curiosity of said bureaucracy. One way for the industry to head off the FCC is to unbundle their product. As it is now, you have to buy a package of stations, and you can add "premium" stations on top of whatever package you purchased. In radio's case, as a consumer of XM, I have to "buy" Opie and Anthony even though I despise them. I can't boycott advertisers since their aren't any, so my money goes to them regardless. I have no direct means to voice my displeasure. If I could opt out of Opie and Anthony, then I, the market, could directly punish them. They do something stupid, subscribers go down, they lose money. They lose enough and they go away. If I'm in the minority, they stay, but at least I know that I'm not giving them money, so I feel better.

As it stands, I could cancel my whole subscription to XM,which would put pressure on XM and the other shows who would also lose their share of my revenue. This is the "punish the group for the actions of one" mentality. Its not as direct, or as effective. I lose, innocent shows lose, and the damage to the target is minimized.

Cable and Satellite have been very reluctant to allow consumers to unbundle stations. I believe that if they give the market this tool they can use the market punishment option to get ahead of any new FCC intrusion into their business. They win, the consumer wins, and we all keep the FCC at bay.