XM Radio Signs Deal With Baseball
Tuesday October 19, 2004
By Seth Sutel, AP Business Writer
Source: XM Satellite Radio Signs 11-Year Programming Deal With Major League Baseball
NEW YORK (AP) -- XM Satellite Radio Holdings Inc. is raising the ante in its programming battle with rival Sirius Satellite Radio Inc., signing an 11-year programming deal with Major League Baseball that could be worth even more than the $500 million pact Sirius recently made with shock jock Howard Stern, a person familiar with the matter said late Tuesday.
The deal would put baseball games for every major league team on XM's service beginning next year, according to the source, who spoke on condition of anonymity. The story was first reported in The Sports Business Daily, a newspaper published by Street & Smith's Sports Group.
Officials from both Major League Baseball and XM declined to comment, but MLB notified reporters late Tuesday that baseball commissioner Bud Selig would have a news conference Wednesday morning with Hugh Panero, the CEO of XM Satellite Radio.
The deal would be worth $470 million in cash over eight years, with Major League Baseball having the option to extend the arrangement by up to three additional years at $60 million per year. That would make the deal potentially worth up to $650 million.
The back-to-back deals highlight the mounting competition between XM and Sirius, both of which are spending heavily on programming in an effort to attract new subscribers.
Washington-based XM is currently leading the way with 2.5 million subscribers to its pay service, while Sirius announced Tuesday that its subscription list has exceeded 700,000. Sirius, based in New York, said it is on track to reach 1 million subscribers by the end of the year. |
