In a recent article, it was announced that H.R. 848, also known as the Performance Rights Act which would force Terrestrial Radio to pay performance fees to the artists, was blocked. Terrestrial Radio conglomerates such as Cumulus Media (CMLS), Entercom Communications (ETM) and the now private Clear Channel Communications have been raking in billions of dollars each year while paying the artists absolutely nothing. Of course the NAB claims victory, but I think this might just present Sirius XM (SIRI) with a unique opportunity.
Rather than Sirius XM having Dedicated Artist channels, there should be artists dedicated to Sirius XM only! Sirius needs to work with the music industry to entice customers to subscribe. A number of artists have joined forces and started an organization called MusicFirst Coalition. These artists need to put their money where their mouths are. There is a group of 38 pages worth of bands/groups that are a part of MusicFirst, including Alanis Morissette, Donnie VanZant, B.B. King, Big and Rich, Brian Wilson, Brooks and Dunn, Bruce Springsteen, Celine Dion, Chaka Khan, Chicago, and the list goes on, and on, and on. These artists need to break from the heard, and give exclusive performance rights to Sirius XM. Imagine if terrestrial radio could no longer play anything from the likes of Dave Matthews Band? The Dixie Chicks? Dr. Dre? Enrique Iglesias? George Jones? Gloria Estefan? Godsmack? If you thought terrestrial radio had a bland play list before, could you imagine what it would be like if they could not even play 25% of their Top 40 countdowns?
Having Sirius XM and MusicFirst work out such an agreement would be HUGE. The publicity first of all would be huge for both groups, and quite damning for Terrestrial Radio. By removing such artists from terrestrial radio, you hit them right where it hurts – Their pocketbook. This also allows for joint promotional opportunities between the artists and Sirius XM, Live broadcasts of concerts, and best of all, bringing the fans of those artists over to subscribe to Sirius XM, which benefits Sirius, the artists themselves, and the shareholders.
Oh, the possibilities…
- Newman – Newman@satwaves.com
Disclosure: LONG SIRI, no position any other security mentioned.
I think this is SUPER; however, I have not ever seen SIRI take advantage of an opportunity like this. I am a major stockholder and am currently in the red. If they would get on the ball, this could easily get them into black. Mel, have you read this article?
Newman,
Nice……oh the possibilities is right, but the legal entanglements will probably take years to work through.
Interesting perspective on this issue. However, This blog/post and others that have given and or written a Lot of Splendid, Excellent, and Fantastic Free Analysis,Consulting,Suggestions and Insights to SXM Management amounted to nothing. There are a lot of reasons for that but one of the Main one is the Senior Executive Leadership of the firm are not Creative and Innovative Thinkers, in addition their ability, competency to execute on strategies, concepts and ideas, have been proven over and over and over and over and over again to not be the case. Who ever has the EARS OF THE MANGEMENT might have some luck at the most persuading Mel and the his Henchman to look at only one Maybe two ideas. I will not hold my breath for this management team to execute any strategy whatsoever in a very smart way.
Interesting possibility. Possibly Sirius XM could negotiate with some record labels for the rights to single albums. However, don’t terrestrial radio stations have the right to broadcast any CD that is available in stores? I wonder if there is any way to get around this. Does anyone here know? Interesting issue presented here.
@Wisdom
Wisdom: We here at SatWaves have always said that we are open to negotiations with senior managment as consultants. I even included my email address, so that they can contact me that much easier!
@SteveSirius: Actually, no. There are restrictions on what can be played. Some songs are considered “Album Only” songs, which means they cannot be played on the radio, even if requested specifically. Ever bought a CD and loved a song that you never heard on the radio? That is why.
Thanks Newman! I appreciate your answering me. I had no knowledge of what you say. Thanks!
So, with what you have said: imagine Sirius XM offering a package to an artist and their label: “We will devote a special channel to you for a week, repeatedly broadcast music from your new album, feature live concerts, past and present, and play music from your past albums.”
Such a deal, if made, would allow people to download music to their recording players (of whatever kind), purchase mp3s as they always do, and buy the album in stores and on the internet.
Perhaps some artists/record companies would do this just to create leverage with the terrestrial radio broadcasters in order to negotiate for royalties on future offerings.
This might be a win/win situation for Sirius XM and the artists and their record companies.
Hellow Newman:
Great idea, but I wonder how ASCAP would react. Composers have been getting paid since the inception so its possible that they would embrace the project since for many song writers their best outlet may very well be sat radio and ultimately internet radio.
Its very unfortunate that this Act did not pass, the present system set up in the 1920’s is an absolute disgrace. Many artists have to surrender their publishing rights just to get signed, this performance rights act would give them justice, not to mention some coin for their performance.
This is truly a sad day for recording artists everywhere. However this issue will come up again and ultimately it will pass, its a good and just law. I’m puzzled why this hasn’t been litigated in the Federal Courts?
Wasn’t there talk about SIRI aquireing Clear Channel distressed assets ?
If terrestial is shut down , who picks up the pieces and rechannels SIRI Sat and takes over local air waves . The advertising revenue would then be huge !!!
Wow!
That is a really great idea, I hope they do it.
Newman,
July 2008 Sirius + XM Merge
July 2008 Apple I-phone, & Itouch
July 2008 Apple downloads turns phone into Walking
Computer
jan – Dec FY 2008 Sir grows 18% Revenue 10% subs
FY 2008 Q4 = Siri = Positive EBITA
FY 2009 Q1 = Siri 2nd straight month Positive EBITA
Feb 2009 = Media falsely tells country sirius going
Bankrupt. on a Friday all over TV all day
That same day aftr the market closed, a deal was reached by Mel K & John alone. Come Monday, no news at all about it, except a post on a web site, until several complaints and then mid afternoon David Faber tells of the deal on CNBC finally. Rest assured had they gone bamkrupts,CNBC and rest of Media would of carried the story all week-end into the new week. I faxrd them 20 times over that week-end to tell the truth.
End Feb 2009 : Stock Shock – The Short Selling of the American Dream is announced as a movie coming out about Sirius XM Radio, media & Short Selling corruption on Wall Street.
Feb/March 2009 Now Jim Cramer is being bashed by Jon Srewart Dailey show, it is very comical and he has footage of Jim Cramer explaining how he lies to the American People. Jim Cramer, seems to be on the verge of being fired, you can see it in his eyes. took a beating by Jon Stewart.
Now since the Jon Stewart beat down and youtube exposure, he has ben talking about Short selling on TV for past few months since movie was announced. Meanwhile CNBC, still no good reports on Sirius XM Radio, they refuse to talk about this success story during a recession year. Somehow, Jim Cramers remains on TV.
also video is out on Twitter right now, shows Jim Cramer on a talk show jimmy Kimmel 14 months ago, just before the merger, saying how Sirius will wipe out newspapers and the merger is being held up by pay outs from the NAB. He has the names of the people paid off to try to stop the merger, yet since then he saysthe opposite up until this day ( June 4th, 2009 )
March 2009 – Mel K announces that Sirius XM Radio to introduce the Apple i-phone and Ipod applications by end of QT 2 ( June 30th ) .
4 movies about Wall Street are coming out of Hollywood within the next year. 1. Stock Shock, Monopoly, Wal ST sequal, and The Wonders of Capitalism. Leave it to Holywood to tell the story since the business media has looked the other way, simular to your NAB story above
Director – Sandra Mohr Stock Shock june 10th, 2009
– Oliver Stone Wall St sequal Feb 2010
-Ridley Scott – Monopoly
Michael Moore – The Wonders of Capitalism fall 09
So Hollywood to tell the real truth about Wall Street corruption and news media collusion and other writers and independent bashers like motley Fools Rick knucklehed Aristotle, Say one thing a day and the oppoisite a week later. He will be reported. But that is part of the big problem. These writers like Rick Aristotle, paid by Motley Fool, Motley Fool paid by the NAB and Big hedge fund managers that have stolen the American Peoples money by shorting Sirus XM Radio, and then they did it to the rest of the stocks,it worked with Sirius XM – lets try it with other stocks and the banking industry. When the movie Stock Shock comes out and gets national atention, the finger is going to be pointed and reported at the Rick Aristotle’s of the world and also the main media and it will lead up as they sing like a bird ( Twitter bird ) as we trace the money trail, up to the Hedge fund managers.
June 6th Palm PRe
June 8th Apple big announcement with things nd also Sirius Xm Radio
June 8th : Rumor, Howard Stern to go on David Letterman, I’m sure he will go on to tell the world how they can hear him from cars, homes & cell phones and gadgets of the future as Sirius will be everywhere. Siri on all the nw WALKING COMPUTERS ( cell-phones ).
Then Howard will say then and now. He left Terrestrial Radio and is now with Sirius XM Radio. In FY 2009 QT 1 Sirius XM Radio became the leader in the World in Radio in Revenue.
Sirius Xm passed Clear channel for total revenue in FY 2009 QT 1.`of $605 million dollars.
Sirius is on Top to stay now that they are on all cell-phones and gadgets of the future, not to mention still going into all cars of the future. $ 605 million dollars in revenue, more than Clear channel, close but Sirius xm is number 1. also, the number three revenue generator for radio is CBS, now CBS has been in business since 1928 and they have only brought in over 200 million dollars in revenue in FY 2009 QT1, compared to Sirius XM Radio’s $605 million. This is a truly amazing story, and as we remain #1 for years to come now that we are on all these Walking computers. cell -phones and gadgets, these other radios station will be blown away by Sirius XM Radio and its content and technology. the world wants access to information instantly. Sirius gives that to them via cell phones.
June 10th, 2009 Stock Shock the movie comes out.
oh yeah, guess who is on the back cover of the DVD .
I’m in one photo, Howard Stern is in another Photo from when he passed out the Radio’s in the street of NYC in 2004.
We are witnessing history fellow longs, soon to be gone are the paid bashers, hedge fund managers corruption of Siirus Xm Radio Stock. They will be force to take their corruption elsewhere upon movie Release Jiune 10th, 2009
go to http://www.stockshockmovie.com and click on Media contact to see the DVD cover and Howard Stern & myself.
also
http://www.Twitter.com/StockShockmovie
great article by Aaron Myers on movie
http://www.thexchangeonline.com
These are facts, please do not attack me, just reporting the story that has unfolded and here is more to it, but could write for months about it. need to write a book, someone contact me.
Dick
Narrator, Stock Shock
Movie release June 10th, 2009
Cool idea? Maybe. REMOTELY possible? No. No artist in their right mind is going to give up being played on the radio. There are artists that pay just to have their songs played. Why would an artist in a struggling industry fragment their potential audience. Holy crap this is a retarted notion.
I think sirius will never get a shot….b/c they paid Howard Stern a OBSCENE amount of $$$$$ like the Wall St. CEO’s!!! & they will NEVER get out of the ridiculous whole they dug themselves…..unless maybe
Howard gives back some of his (tarp $) I mean fart $$$$$…Sad but true!!! The King of all media that he titles himself is the King of big
payoff…
Newman, you are incorrect when you say radio pays artists absolutely nothing. We can debate whether they pay enough, but they do pay ASCAP, BMI & SESAC large amounts to play music. That money provides a big incentive to those who receive it to keep artists on the air, and we can expect those companies to fight tooth and nail to preserve that revenue stream.
Let’s also be realistic. Do we really think people will subscribe to satellite radio for “Donnie VanZant, B.B. King, Big and Rich, Brian Wilson, Brooks and Dunn” etc?!! A more likely scenario is that people will listen to neither type of radio and simply download new music either legally or illegally.
First, I own the Stilleto 2 and I love the service that Sirius offers.
However, they are crushed in debt and their contracts are so absurdly high that their revenue gets eaten rapidly.
That, and I haven’t seen an ad, a commercial or any marketing, really, in over 12 months in my area. NOTHING.
Their flagship device, which I own, needs a major upgrade or a new model altogether to help drive interest. However, I doubt anything tangible is in the pipeline.
In fact the only place I see or hear about Sirius, other than the when I look at its stock daily and read on the internet, is when I go to Fry’s Electronics and stroll through their mobile audio section.
I don’t see much changing in the next 6 months, or hell, 12 months even with this company.
I love this idea. I work in radio and would love to see all these artists pull their music and go exclusive to satellite….and watch what happens to their record sales. Ask the Dixie Chicks how things were for them the little while they got pulled from country radio after commenting on the president. I can tell you, things weren’t so good for them. If the record industry and artists didn’t really think they were making money from the free promotion they get on radio, do you think they would continue to spend millions each year to promote their artists to radio stations? If they really thought radio didn’t help them, do you think the musicFirst coalition would have files a complaint that some of the artists supporting the bill aren’t getting as much airplay any more? C’mon, now musicians have the right to make stations play their music and make the stations pay them for it? Please, go to satellite. There are a hundred talented aspiring musicians out there that would love to step up and take your place and don’t want a dime from stations, they just want their music on the air so that people will buy their albums and come to their shows.