SIRIUS / FOX Update

Tuesday, December 20, 2005

Variety.com is reporting that, "The situation has become so dire that Sirius topper Mel Karmazin walked across West 48th Street from Sirius' headquarters to News Corp. HQ to meet with Fox topper Roger Ailes in person.

Fox has become one of the more popular offerings on pay radio, and Ailes is said to want a carriage fee that reflects that popularity. Fox also wants a deal with Sirius to include carriage of Fox News Talk, a channel with Bill O'Reilly, Neil Cavuto, Snow, Colmes and others, as well as news updates from Fox News Radio.

XM Satellite Radio inked a deal to carry both six months ago, and as if to tout their corporate harmony, the two have been taking out joint ads in the trades, as well as the New York Times, the Wall Street Journal and the New York Daily News.

"Thinking of buying a satellite radio for Christmas?" an ad read. "XM is the only satellite radio provider committed to carrying Fox News Channel in '06."

But Karmazin said he's wary of paying a big license fee to Fox for content that's not exclusive.

"If we can do a deal at a price that makes good sense for us, we'd love to do it, and if we can't, then we have other news offerings that we will provide the listeners," Karmazin told anchor Bill Griffeth on CNBC's "Power Lunch" last week.

But by not inking Fox, he's giving competitor XM a de facto satellite exclusive on Fox content for the price of a non-exclusive deal -- a stumble for a cagey media vet like Karmazin."

Some things to note about all of this, GSI has been told that the XM FOX deal was all part of the Direct TV deal, and was all in one nice big package. Read more here..

Check out the GSI: Forum for past blog links and chat about this deal..

Full Variety.com story here

3 Comments:

Blogger Rob said...

Letting Fox walk was a big mistake. Sirius pays $500 million for that has-been Stern, but they won't pay up for something their existing subscriber base wants to listen to. CNN sucks! Sirius needs to realize that its customer base isn't comprised of just 15 year olds!

Wed Jan 04, 05:59:00 PM EST  
Blogger Scott said...

I agree with the previous comment. My Father is in his late 60's and got Sirius before I did. He got it for the Fox News programming. I followed suit months later for the same programming. Without Fox on Sirius, I will be moving to where I can get it...even XM. Don't want to, since I bought the boom box, car kit and the stereo attachments, but I will. I am a news junkie and none of the current stations can compare.

Wed Jan 04, 11:44:00 PM EST  
Blogger canon940 said...

My brother,sister and I bought my father a sirius car unit so that he could listen to his favorite show "Fox News". He was devastated and mad when it went off the air. We both cancelled our subscription to sirius. We will re-subscribe when Fox News is put back on sirius. We can't afford to buy new equipment to transfer to XM. Big mistake on Sirius's part.

Wed Jan 18, 08:49:00 PM EST  

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