SIRIUS may pick up other auto manufacturers to install SIRIUS Radio's in their cars because of the NASCAR deal.This may be more profitable than it looks?
I don't know anything about NASCAR so this question is born out of a certain ignorance. Is NASCAR, as a sport--essentially race car driving--condusive to radio? I mean is there a play-by-play like in the four major sports? It's hard for me to imagine a radio broadcast of a car race. Are races currenlty broadcast on the radio? Do people currently tune in to listen? It seems to me--and again, I'm not familiar with any type of car racing, so forgive my ignorance--that car racing is only a viewer-type sport well-suited for TV but for radio not so much. Can anyone shed any light on this?Thanks in advance,berkeleyroad
NASCAR, as a sport--essentially race car driving--condusive to radio? I mean is there a play-by-play like in the four major sports?Actually, yes there is. I have heard NASCAR on the radio most of my life (wonder what that says about where I have lived). The play by plays are very detailed and actually sound a lot like the country auctions. Very rapid fire.I have no problem believing that people would tune in for this. Another reason people would listen is because when they are on the infield, they cannot see the whole track. They will listen to the radio at the race so that they know what to expect when the racers round the corner.Buffy (who only knows from hearsay, never been to a race...)
The Hill-Billies love NASCAR!And there are LOTS of hill-billies in the US especially in the South.Hope they have the $13 per month to pay for SIRI though
Another reason people would listen is because when they are on the infield, they cannot see the whole track. They will listen to the radio at the race so that they know what to expect when the racers round the corner.On top of that, the radio broadcasts can feature in-car/pit crew audio feeds. So, even a person watching at home could tune into a channel to hear the "inside" information. Die hard fans who attend the NASCAR races already go through the trouble of buying fairly expensive scanners that work like police scanners, but have features making them suitable for picking up the feeds between the driver and crew. I suspect it greatly increases the fan's feeling of involvement in the action.These fans already spend 200-400 dollars for a scanner and a NASCAR-styled headset, just to use at the track. http://www.racingradios.com/The possibilities for SIRIUS to feature several channels of these feeds is endless, and if it is worthwhile the word will quickly spread among the NASCAR fans. marxtacy
I have to travel a bit on Sundays and all I know is that during football season it is a hell of a lot easier to find a NASCAR broadcast on the radio than it is a football game once I'm out of range of the home team or their game is over.herb
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? http://boards.fool.com/Message.asp?mid=22111701
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
Marxtacy, That's a great point you make. People who go to baseball and football games often sit there and listen to the game on the radio because they get better commentary about whats going on. Jim
Still, sat companies want to be big. To say that exclusivity would not help XMSR image is tough. XM is the current exclusive provider. They have vehicles at NASCAR events. However, there is something we are missing in this deal. XM knows from their experience that this deal was not worth 107.5 million. So what about payments and their schedules. You still have to pay it. It is a debt. This contract is not like an NFL player contract. If the sport does not perform, they cannot cancel it. NASCAR wants to get into the NY market. I think this helps them more than it does SIRI. I believe that SIRI is aligning themselves with big time sports to fill out their direction. "Big time radio" (for lack of better term) will be their image. Stern, NHL, NBA, NFL, NASCAR and Enimen all from NYC. Is it worth it? This stock has been driven by names and not necessarily sound business decisions. The market says, " we trust you names. you have an assemblance of a track record." IMO, the price fluctuation has reflected some blind hope.
Most hardcores have already purchased a communication device that allows the track fan to hear the pit crews strategize during the race. They can change the channels and hear all the going's on of their favorite teams in pit row during the race. So.... the "call" of the race is useless to the avid fan. They have inside coverage. Watch a NASCAR race and see how many fans are wearing those obnoxious headsets. XM last year began broadcasting this feature to give better coverage. I wonder if the channel was done as a result of requests from NASCAR fans who were XM subs? However, as a subscriber, I cannot tune into the driver of my choice. It is many drivers on one channel. Bandwidth issues probably dont allow XM to do individual driver channels during the race. Anyway, if you are not watching the race, it is very difficult to listen for effect. It's a neat idea but, for me, it required the visual aid of TV. Perhaps really hardcore fanatics can ascertain what's happening from that broadcast.
NASCAR fans have the highest brand loyalty of all sports segments in the US. And what do all fans of NASCAR have in common, they all drive cars and pickups. How many fans are currently XM subs? Would be curious about that as I expect the majority to jump to SIRI when the switch is made.Did SIRI overpay for some/all of their major sports? They may have and time will tell. But remember is was only about 10 short years ago Rupert M and FOX made a very bold move and "overbid" on football. Whether you like or dislike Fox, they went from nothing to legitimatly the number 3 broadcaster in the US in 2 decades; and lord football was a major factor.I like the move and am long on SIRI with my discretionary allotment of my investing funds. It's been good for me the past year and I'm cautiously optimistic on the future.
Did SIRI overpay for some/all of their major sports? They may have and time will tell. But remember is was only about 10 short years ago Rupert M and FOX made a very bold move and "overbid" on football. Whether you like or dislike Fox, they went from nothing to legitimatly the number 3 broadcaster in the US in 2 decades; and lord football was a major factor.Overbidding is usually something that can only be proved in hindsight. When the AFL started it's football league it was thought that all the money they started to offer the stars of the NFL would either destroy them or football itself. Well we see what happened there. Same with the above example with FOX. OTH, the WFL went under after offering stars big money. It all depends on your market and the appeal and NASCAR and the NFL have big appeal so it looks like a reasonable gamble even tho both sports are not as suited for radio as baseball is. The problem with baseball is that, while probably the best suited of all sports for radio, it is a declining market tho the fact that it has more contenet than any sport will probably make it a good deal for XM.herb
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