NAB Members Advertise On Sirius XM Radio
In a small twist of irony, members of the National Association of Broadcasters are advertising on Sirius XM Radio. This is not necessarily new, but the advertising seems more frequent, and there also seems to be ads on the more expensive channels. Now before everyone jumps to the conclusion that terrestrial radio stations are advertising on satellite radio, I should inform you that it is television networks that seem to be buying up some air time.
Today on Howard Stern, there was an ad from NBC. The networks are rolling out their Fall line-ups, and it would appear that the ability to market to a national audience through satellite radio has some appeal. The NBC ad today featured the new Christian Slater series “My Own Worst Enemy”, which the network has been advertising heavily on their own broadcasts in recent weeks.
With the merger complete, and the economy in hard times, one fat will always remain. Companies need to get the word about their product or service, and times like we are all facing now is perhaps the best time to do that.
Hearing NBC ads on Sirius is good for business. The caliber of advertiser seems to be improving, and that gives the ad platform for Sirius XM Radio more stability going forward. While I do not expect record breaking ad revenue in Q3, I do expect to see continued growth in that area of the business. No, ad revenue is not a huge component of the company financials, but seeing it improve is a sign that there are aspects of the satellite radio business model that have a measure of insulation against poor economic times.
Position – Long SIRI, No Position NBC
Thanks Brandon…that is some good news to start off this trading day. Lets hope it helps build revenue…Thanks NBC too.
It is better than hearing some “.com” name no one has ever heard of advertising.
(SUMMARY) Sirius XM Spotlight: Cash Flow Ignition or Abort Mission?
Sirius XM faces many challenges, but the most important hurdle is refinancing its debt in 2009. Continued bank failures would make any refinancing very hard, but Sirius XM has good future cash flow prospects that could attract banks.
Jake Newman, CFA
[email protected]
Speaking of “.com” names no one has heard of…
IMO Howard is a great buy.
You have people paying attention & not fast winding through commercials like they do with TV on their Tivos.
………….still fondly remembering wNbc!
PBW
Couple of thoughts, Dobie…
While NBC (and ABC) have recently rejoined the NAB — all 4 major networks (ABC, NBC, CBS and FOX) all resigned from the NAB between 1999 and 2003, over their positions regarding TV.
Only ABC and NBC have since returned to the NAB… however neither of them are radio operators anymore. Both own a handful of TV stations, plus the Networks. And let me tell you, the TV divisions can care less about radio. Especially since their company is no longer in the radio business. The fact is, they could care less about the NAB positions on radio.
Only CBS remains a radio operator today — and they have no interest in the NAB… and as I noted previously, neither CBS, nor its stations, filed one comment with the FCC with regards to Sirius, XM or the merger. In fact, none of the companies (ABC, CBS, FOX, NBC) filed comments with the FCC about them. The NAB position really is irrelevant to them. And they certainly will not be pushed around by the NAB
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homer985 – I have to agree. SiriusXM gives all of these stations an opportunity to broadcast in another format. I listen to Fox, CNN, Bloomberg and CNBC all on my Sirius radio. The additional exposure is good. Especially when the technology becomes good enough to broadcast a TV signal through SiriusXM. That will help everyone (except local cable stations and DirecTV.)