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I posted this to another thread and its my humble opinion. I am wondering if this sport is so valuable to sat radio, why did not XM bid higher?

Perhaps XM didn't see NASCAR as part of its image. Sirius now has Stern, the NFL, and NASCAR. It is becoming increasingly important for XM to create a unique brand image. One can easily see a difference in the way each company markets, esecially their respective websites. NASCAR may not fit what they are trying to do.

It is understandable to be concerned as an investor when a company decides to spend a load of money on new content, especially since the expenses per subscriber is already so high. But, keep in mind that the NASCAR contract will be paid over time, and NASCAR has agreed to accept the largest payments near the end of the contract. In the meantime, SIRIUS can build the subscriber base and make money off of advertising.

Further, NASCAR might not be enough to subscribe to satellite radio, but it might be the straw that breaks the camel's back for many consumers. Especially undecided consumers who enjoy the Stern show.

marxtacy
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