Sirius Satellite To Broadcast NCAA Games
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Sirius Satellite Radio Inc., the second-biggest pay-radio service, bought the rights to broadcast every game of the National Collegiate Athletic Association men’s college basketball tournament for the next three years.
Sirius yesterday said it also will air English Premier League soccer matches for the next three years starting with the current season. The Premier League comprises the 20 top soccer clubs in Britain, including Chelsea and Manchester United. The company didn’t say what it paid for the two deals.
Sirius has invested at least $720 million in the last year for new programs to lure listeners, including Howard Stern’s talk show and National Football League games. Sirius, which this month named Viacom’s former president, Mel Karmazin, chief executive, needs to sell more radios, money manager John LaForge said.
“They made the right moves with their programming, but now it’s time for the ‘show me’ game and to get their radios into cars,” said Mr. LaForge from Sarasota, Fla. “That’s always been the story.”
Mr. LaForge said he doesn’t own any shares of Sirius or of XM Satellite Radio Holdings Inc., the largest pay-radio company.
Sirius and XM Satellite both seek exclusive factory-installation contracts with auto manufacturers because customers are more likely to use satellite radio if their new car comes with it. XM Satellite has been adding subscribers through its exclusive agreement with General Motors Corp., the world’s biggest automaker.
Sirius in July said Ford Motor Co. plans to have Sirius radios as a factory installed option in some of its 2006 model cars. The company also has exclusive partnerships with Daimler Chrysler AG, BMW, and Ford.
Sirius, which airs American football, basketball, and hockey, will begin its NCAA coverage with opening-round games March 15. All the college basketball games and soccer matches will be offered with no blackouts or extra charge over the $12.95 monthly fee, the company said in e-mailed press releases.
Sirius last year agreed to pay $220 million over seven years to broadcast National Football League games starting this season. They added a deal with College Sports Television in August to air sporting events of 23 universities. Sirius also broadcasts National Basketball Association and National Hockey League games.
“They are just continuing to beef up the content for their consumers,” April Horace, an analyst at Janco Partners Inc. in Colorado, said in a telephone interview. Horace has an “accumulate” rating on Sirius shares.
XM Satellite in October signed an 11-year, $650 million agreement to broadcast Major League Baseball games starting next year.
Sirius, which has never posted an annual profit, said it expects to have 1 million customers by the end of the year. For customers who buy its receivers, the company offers 120 channels for $12.95 a month. XM, which has more than 130 channels and charges $9.99 per month, has about 2.5 million subscribers.
Shares of Sirius rose 18 cents to $6.69 in Nasdaq Stock Market composite trading.