Some thoughtful reaction to the MLB-XM news from Media Life Magazine:
http://69.20.6.242/news2004/oct04/oct18/4_thurs/news2thursday.html
XM bags Major League Baseball rights
Analysts: A good deal but nothing like Stern
By Marisa Hoheb, Media Life Writer
A mere two weeks after Sirius Satellite Radio agreed to pay hundreds of millions of dollars to snatch up shock jock Howard Stern, rival XM Satellite Radio countered yesterday by acquiring the rights to Major League Baseball games.
The reaction to XM’s announcement: a resounding ho-hum.
While airing MLB games should certainly help the growth of nascent satellite radio, analysts see Sirius’ acquisition of Stern as the much bigger deal.
The XM deal, spanning 11 years and valued at $650 million, includes rights to air MLB games beginning next year and through 2012. MLB will then have the option of extending the contract through 2015.
XM’s Major League Baseball Channel will broadcast every game live, including the World Series, and will also feature classic baseball games on off days. The channel will air 24 hours a day, seven days a week.
XM also acquires the rights to use MLB’s batter-in-silhouette logo and all 30 team emblems in its promotional materials.
But as analysts note, the baseball deal lacks the import of the Howard Stern deal of two weeks ago, when in a surprise move the nation's top shock jock agreed to a five-year, $500 million deal to jump to Sirius when his contract with Viacom’s Infinity Broadcasting ends in January 2006.
The Stern-Sirius deal delighted media insiders, who see it as the beginning of satellite’s rise as a true mainstream competitor to broadcast radio. The jump to Sirius will remove Stern, to his great delight, from the purview of the Federal Communications Commission and its various efforts to enforce its indecency regulations on Stern's show.
One reason analysts place more value on the Stern deal is because it is exclusive. Fans wanting to hear Stern will only be able to do so by subscribing to Sirius. By contrast, baseball fans will still be able to catch games on existing media outlets.
Fans who want to hear or see games outside of their local market already have the option of listening to them on MLB.com or purchasing premium cable or satellite TV packages. AM radio listeners can tune into games being broadcast several markets away.
So while baseball games on satellite radio will certainly be of interest to some fans – including those spending a great deal of time in the car and those in smaller markets – XM’s contract with the MLB likely won’t incite quite the rush of new subscriptions that Stern is expected to bring to Sirius.
The rivalry between XM and Sirius has heated up in recent months, with each signing big-name personalities and popular league sports in an effort to trump the other.
XM now has smaller-scale shock jocks Opie and Anthony, former National Public Radio icon Bob Edwards, NASCAR and college football and basketball. Sirius has picked up Stern, the National Football League and the National Hockey League.
XM maintains a significant early lead over its competition, with 2.5 million subscribers to Sirius’ 750,000. But Sirius estimates it will reach or exceed 1 million subscribers by the end of the year.