Earlier this week Sirius XM Radio announced that they had signed a deal bringing popular conservative radio and television personality Glen Beck to the satellite radio dial. While Glen Beck is not exclusive to Sirius XM, the value of this deal, as I pointed out on last nights SiriusBuzz Radio broadcast, is still quite substantial. Here is why.
Content is king. We have all heard this many times. Exclusive content is great, but it is also costly. Sirius XM already has the best music variety available, and a top notch news and talk line-up. While the Glen Beck deal lacks exclusivity, it does give the advantage of keeping listeners tuned into satellite radio rather than turning somewhere else such as terrestrial radio. They key is keeping people tuned in to Sirius XM as much as possible. If you can keep people tuned in, then you can become their audio entertainment and news source on nearly all matters that matter to consumers. Further, even though not exclusive, Glen Beck will bring new advertising dollars to Sirius XM. Because Beck is popular, his sponsors will want to advertise where people listen. With 35,000,000 listeners, and a footprint that covers all of North America, sponsors for Beck have a whole new realm to tap.
So while Beck is not exclusive, he does add value in many ways to Sirius XM.
Position - Long Sirius XM Radio