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Old 10-19-2004, 09:23 PM   #31
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MLB to XM doesn't bother me at all! I like baseball, but I love the NFL! Having the Yankees, Mets and Somerset Patriots (minor league team) available on local radio suits me fine. When I'm driving during the summer, I prefer music on the radio as opposed to baseball. I check for a score update from time to time, but that's about it. I won't listen to baseball for the duration of a long trip. The first reason I got Sirius was for the music. Getting the NFL was a huge bonus. I'm not at all upset Sirius didn't get MLB.

Where's XM going to get all the channels necessary for all those games? Will baseball games be on music channels? For the XM subscriber, those are important questions.
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Old 10-19-2004, 09:47 PM   #32
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XM Radio Signs Deal With Baseball

NEW YORK, Oct 19, 2004 -- XM Satellite Radio Holdings Inc. is raising the ante in its programming battle with rival Sirius Satellite Radio Inc., signing an 11-year programming deal with Major League Baseball that could be worth even more than the $500 million pact Sirius recently made with shock jock Howard Stern, a person familiar with the matter said late Tuesday.

The deal would put baseball games for every major league team on XM's service beginning next year, according to the source, who spoke on condition of anonymity. The story was first reported in The Sports Business Daily, a newspaper published by Street & Smith's Sports Group.

Officials from both Major League Baseball and XM declined to comment, but MLB notified reporters late Tuesday that baseball commissioner Bud Selig would have a news conference Wednesday morning with Hugh Panero, the CEO of XM Satellite Radio.

The deal would be worth $470 million in cash over eight years, with Major League Baseball having the option to extend the arrangement by up to three additional years at $60 million per year. That would make the deal potentially worth up to $650 million.

The back-to-back deals highlight the mounting competition between XM and Sirius, both of which are spending heavily on programming in an effort to attract new subscribers.

Washington-based XM is currently leading the way with 2.5 million subscribers to its pay service, while Sirius announced Tuesday that its subscription list has exceeded 700,000. Sirius, based in New York, said it is on track to reach 1 million subscribers by the end of the year.
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Old 10-19-2004, 10:02 PM   #33
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Quote:
Originally Posted by SiriusNow
Amnesia-If the price didn't go up, then how is everybody paying for the burden of Stern? Doesn't make much sense!
Opportunity cost.

That means that if you buy one thing, you might not be able to buy something else. (OK, that's a bad definition, but it's close enough.) Like if you spend $500MM on Stern, you can't afford the MLB.

Do the Sirius subscribers "pay" in terms of more money out of their pocket? No. Do they "pay" in terms of not getting other content? Yes.

There are opportunity costs with most decisions. My point was that it makes sense to offset the opportunity cost by having those who benefit from the original purchase contribute more.

Let's take an example. A family, man, wife, teenage son, young daughter decide that now that their son is old enough to drive, they should get a second car. Unfortunately, that means that they don't have enough money to go on vacation. Everyone, including the young daughter is affected. Wouldn't it make more sense for the son to pay for part of the car? That way the family would have enough money to do something that would benefit everyone.

(In case it's not clear, car=Stern, family=Sirius, daughter=listener not interested in Stern.) Of course, my analogy isn't perfect, but you get my drift...

That's not to say that Stern was a bad deal. It's just that by doing the deal, Sirius has less financing available for other projects. Given that fact, it makes sense for me to have those listener who will benefit from Stern's program to pay a little extra, thus making more money available for the other listeners. (And the same, of course, for XM and its premium offerings.)
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Old 10-19-2004, 10:20 PM   #34
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Sirius had the cash for the baseball deal. They decided it was not worth the cost.

Again...there are a few important questions that must be answered when it comes to this deal....

1) how many games are played in a day? will there be major pre-emption of programming? (Is XM going to have to pre-empt alot of their news/talk channels to carry all the games?)
2) will they carry both home and away games?
3) how many "out of market" baseball fans are there?
4) will this be an added monthly cost for the subscriber?
5) will XM have exclusive rights to playoffs and world series or will that still be on Sirius' ESPN radio channel?
6) what sort of co-marketing/branding deal is included in this payment to the MLB?

Also--there is an important note for anyone who compares this with the Stern deal. Stern is EXCLUSIVE...that means you can't get him anywhere else but Sirius. MLB can still be heard on local radio, and seen on television.
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Old 10-19-2004, 10:24 PM   #35
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The new analogy works much better. I understand what you are saying. But my point is that instead of passing along a value to the customers (Sirius gives more bang for the buck), XM is making every single thing cost something. I understand the opportunity scenario, but with that taken out of the mix, XM subs have to feel they are being ripped a bit. Why do Sirius listeners get it free online? Why don't they pay for Stern? Why don't they pay for the NFL, NHL, NBA? Thats all I'm trying to say. Again, I have both and can't believe they want 3.99 for online listening. I do get nervous that maybe money spent in one area costs us something elsewhere. But Howards money isn't outgoing yet and I don't think that money not being there was an issue. Joe and the boys spend it when they think they are going to get a good return. Joe wanted MLB, but probably wouldn't pay through the nose for it. I think thats what really happened, XM was under tremendous pressure and got held up.
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Old 10-19-2004, 10:29 PM   #36
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I really don't think SIRIUS went after Baseball that big. SIRIUS already has utilized their bandwidth and channels along with preemptions of programming. This would have made it a lot worse. I think they understood this because of the complaint of those that don't like to have their talk channel programming preempted. XM is going to have a time juggling all those games. It will be interesting to see how it turns out. I personally could give 2 hoots about MLB. NFL is the bigger sport and has been for a long time. Sure its true that MLB was kind of like the radio sport for many years. However the ball parks are not selling out like they use too. The games being broadcast on TV are fewer and fewer because of ratings. I think XM had to get MLB in order to stay in the game. But the fact is SIRIUS is in damn good shape where they are and they really didn't need MLB. I think them not getting it will prove to be a good thing in the long haul.

I subscribe to both services, so I am not anti one or the other. I hope it works out and pays off for XM. But this certainly isn't going to do much in the way to harm SIRIUS. Also, if XM charges extra, this isn't going to go over too well. Here SIRIUS gives NFL, NHL, NBA at no extra cost and XM has MLB and charges for it. What is strange is my gut is telling they will charge. We shall see...
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Old 10-19-2004, 11:03 PM   #37
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don't forget whether or not they will air the complete pregame and postgame shows. that is very very key to baseball fans!
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Old 10-19-2004, 11:10 PM   #38
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To quote what I said on dbsforums.com:

Nooooooooooooooooooooooooooooooooooooooooooooooooo ooooooooooo

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Old 10-19-2004, 11:32 PM   #39
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I think the MLB Playoffs will always be available on ESPN Radio. Sirius decided to go out and sign shock jock Howard Stern. I am a baseball fan and baseball will always be around. Sirius was dumb in my opinion for signing Stern to a deal that won't even start untill 2006? That's over a year away. Hell Stern could die tomorrow. I think it's foolish to pay anyone $500 million. Baseball for all the teams at $650 million over 10 years. That's a Grand Slam Homerun for XM.
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Old 10-19-2004, 11:48 PM   #40
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I'll qualify my earlier comments on baseball going to XM. I'll wait until tomorrow's announcement to decide if I'm jumping, depending on how much XM is going to charge extra for the service and if they will have both broadcasts (I doubt it).
I'm a Cubs fan, in the middle of Cardinals' and Rangers' territory. If XM is going to charge quite a bit for it, I'll shell out a little bit more money for DirecTV's package ( already pay up for Sunday Ticket) and keep the Sirius (That is, if I'm not working a baseball beat somewhere by then). I like Sirius and I'll stick with it until opening day 2006 if I switch.
I wish Sirius would have signed MLB. It'd make the decision much easier. I didn't buy Sirius for the sports but the college teams on Sirius match up with the teams I want to listen to.
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Old 10-20-2004, 12:08 AM   #41
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Quote:
Originally Posted by Rob27
I think the MLB Playoffs will always be available on ESPN Radio. Sirius decided to go out and sign shock jock Howard Stern. I am a baseball fan and baseball will always be around. Sirius was dumb in my opinion for signing Stern to a deal that won't even start untill 2006? That's over a year away. Hell Stern could die tomorrow. I think it's foolish to pay anyone $500 million. Baseball for all the teams at $650 million over 10 years. That's a Grand Slam Homerun for XM.
If Howard Stern dies tomorrow SIRIUS won't be out one red cent, he doesn't get paid a penny from what I understand until he reports for work at the SIRIUS studios. The Stern deal in my opinion will still end up getting SIRIUS more subscribers than MLB. I realize that MLB is loved by many, but MLB has screwed the fans enough times over the years with walk outs and such that many of the old die hards aren't so die hard anymore. You may love them, but if they got MLB along with all the other sports and the bandwidth is used up and the music start sounding like crap and the talk channels are preempted more and more, I think the cost in subscribers would be greater than the gains. I personally think SIRIUS took a pass on MLB. Sure it would have been cool to get MLB, but was it really feasible with all they already have going on taking up bandwidth and I am not talking about Stern. He won't get that much bandwidth.
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Old 10-20-2004, 12:10 AM   #42
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OK,

I would have really liked to see Sirius get the MLB instead of XM, but not at the price that XM paid for it. If anything, I think that the deal that XM is signing really makes the NFL and Howard Stern look like a bargain for Sirius.

There is no doubt in my mind that Stern in 5 years will bring more subs and publicity to Sirius than the MLB will bring to XM in 10 years.
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Old 10-20-2004, 12:41 AM   #43
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no charge for MLB on XM.....


http://www.washingtonpost.com/wp-dyn...2004Oct19.html


"The games will appear on XM's standard service at no extra cost, said the source, who spoke on the condition of anonymity because the deal had yet to be publicly announced."
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Old 10-20-2004, 01:01 AM   #44
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Quote:
Originally Posted by thexmdabster
no charge for MLB on XM.....


http://www.washingtonpost.com/wp-dyn...2004Oct19.html


"The games will appear on XM's standard service at no extra cost, said the source, who spoke on the condition of anonymity because the deal had yet to be publicly announced."
well then the only cost to XM subs will be pre-emption of channels they would normally get. i'll tell you if Sirius got MLB and i turned on Sirius Left only to hear an Angels-Cubs game I would be really frustrated.
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Old 10-20-2004, 01:07 AM   #45
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Well, I'm disappointed. Maybe I will need to look again at adding XM to my car. The issue though was always the number of games. The NHL plays (as a league) a little under half the games that MLB plays, and Sirius didn't have the ability to carry all of them. Similar numbers with the NBA. This is going to suck the ability of XM to add new music streams down quite a bit. (And it would have for Sirius as well.)

I agree with those who've said that baseball is a great radio sport, but I also know I didn't listen to many games myself this summer. Too many other great choices on Sirius!!!
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