XM, Starbucks Splitting Up. Oprah, Lance, Tony Hawk Next?
Starbucks and XM Satellite are breaking up, PaidContent reports. XM will pay $22 million in stock to end the deal, which gave XM a Starbucks-branded channel and gave Starbucks its own instore radio programming.
It's a blip for both companies, but a good reminder of one of the upsides of a Sirius/XMSR merger -- an end to the frenzy of deals to lock up brand names in an effort to differentiate the two services. The most famous, of course, was Sirius' (SIRI) mega-deal with Howard Stern. But a few years ago both outfits were chasing after any celebrity they could, some of which made sense at first glance for a radio outfit (Oprah Winfrey, Eminem) and a lot that didn't (Lance Armstrong, Tony Hawk). In most cases they offered cash, stock or both.
Can you think of any case, sans Stern, where they got their money worth? We don't listen to subscribe to either service, so we'd be curious to hear from SAI readers. Did you sign up with Sirius in order to listen to Lance? XM for Oprah? Let us know in comments below.
It's a blip for both companies, but a good reminder of one of the upsides of a Sirius/XMSR merger -- an end to the frenzy of deals to lock up brand names in an effort to differentiate the two services. The most famous, of course, was Sirius' (SIRI) mega-deal with Howard Stern. But a few years ago both outfits were chasing after any celebrity they could, some of which made sense at first glance for a radio outfit (Oprah Winfrey, Eminem) and a lot that didn't (Lance Armstrong, Tony Hawk). In most cases they offered cash, stock or both.
Can you think of any case, sans Stern, where they got their money worth? We don't listen to subscribe to either service, so we'd be curious to hear from SAI readers. Did you sign up with Sirius in order to listen to Lance? XM for Oprah? Let us know in comments below.
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The XM/Starbucks (Hear music channel) was initially a great channel in my opinion. I didn't get the service because of Starbucks, but once I found the channel, it made me feel like I was getting my subscription at a super low price! The channel was great, introduced me to many new artists, and always had great, interesting programming. Then about a year ago, they merged it with...XM Cafe? Talk about the channel becoming an exact parallel of corporate. The programming had no focus, the "cool" factor was gone, and now the channel is just "okay." Before, I would be glued to the channel for days. Now, I barely spend more than 20 minutes a day listening to it.
Sad to see it go - wish I could do more to help it find its focus.
The XM/Starbucks (Hear music channel) was initially a great channel in my opinion. I didn't get the service because of Starbucks, but once I found the channel, it made me feel like I was getting my subscription at a super low price! The channel was great, introduced me to many new artists, and always had great, interesting programming. Then about a year ago, they merged it with...XM Cafe? Talk about the channel becoming an exact parallel of corporate. The programming had no focus, the "cool" factor was gone, and now the channel is just "okay." Before, I would be glued to the channel for days. Now, I barely spend more than 20 minutes a day listening to it.
Sad to see it go - wish I could do more to help it find its focus.
I hope the merger doesn't take place. Right now, content producers can play the two satellite providers against each other for the best contract. If XM & Sirius merge, then entertainers won't get as good deals when they sign, and doubtlessly, the entire roster of XM & Sirius stations won't continue. The resulting service would be a compromise forged by what's cheapest for them to keep. There won't be an Oprah AND a Martha Stewart channel.
There's as much a need for a Tony Hawk radio show as there is a Sillicon Ally Insider website. Perhaps Hawk's content would be better presented in the video medium than audio, though.
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- No commercials
- Lot of different niche music stations
- ESPN and CNBC