http://nypost.com/2017/05/17/siriusxm-in-discussions-to-acquire-struggling-pandora/
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SiriusXM in discussions to acquire struggling Pandora
- Thread starter Y2kTheNewOldies
- Start date
Suggesting they may "lean on" the SEC to reject a deal?
Not at all. Universal and Sony are foreign companies.
i'm surprise they still want to merge with Pandora with the recent news that iHeartMedia's in deep financial trouble. and does SiriusXM still have sort of relationship with iHeartMedia.
They did a long time ago. Clear Channel was an original investor in XM. I believe CC sold its shares some years ago.
I doubt very much that iHeart would consider selling its digital platform. Truthfully, Pandora will be easier to integrate in the Sirius system.
Yes, several radio groups invested, and were promised channels to produce their own content on. Part of that deal included a portion of the commercial inventory on those channels.
However, when XM decided to go non-commercial on the music channels, that throttled any chance of monetizing the content. The first company to drop out was Hispanic Broadcasting, where we were providing 5 Spanish language channels. Clear continued providing some of their terrestrial stations, but that went away eventually. Both companies tired of being shareholders with no payback.
XM (but not Sirius) still carries KIIS Los Angeles and WHTZ New York on channels 11 and 12, despite having plenty of in-house options for CHR and Hot AC. Why this is has never been explained.
Perhaps its a legacy of the detail that David alluded to.
I fail to see the upside of Sirius/XM buying Pandora. Sirius/XM already has a web presence for its subscribers and could easily start a stripped down free web service if it wished to. I see this confusing or even offending subscribers that people who aren't paying are getting content. I'm not discerning any upside.
If they pay anything near even $2 a share, they are getting hosed.
I fail to see the upside of Sirius/XM buying Pandora. Sirius/XM already has a web presence for its subscribers and could easily start a stripped down free web service if it wished to. I see this confusing or even offending subscribers that people who aren't paying are getting content. I'm not discerning any upside.
If they pay anything near even $2 a share, they are getting hosed.
The upside is exactly what's been discussed: SiriusXM can fold Pandora under their music rights licenses, which will not only allow SiriusXM the ability to jump head first into a known streaming platform, but would save Pandora from eventual collapse. SiriusXM has been promoting the ability to stream their satellite line up for a couple years with mixed results, and their satellite radio subscription base has been stuck around 1.3% of the available radio listening for three years. Pandora gives them a big streaming listener base from the get go.
There are some channels that are online-only. Escape did this for a short time until so many people called to complain that they had to hire new people. It made more sense just to put Escape back on the radio.
Sirius And XM merging created a monopoly. Won't this make the situation worse?
Sirius And XM merging created a monopoly. Won't this make the situation worse?
And given the business model that Sirius uses, you can probably kiss the free streaming channels goodbye. Everything will be for pay.
Pandora has been unable to effectively monetize its content. Sirius has to recognize that making Pandora subscription only would drive the current customers away. Neither do I see this as a way to highlight their content and gain significant new subscribers. There just doesn't seem to be much rationale to such a deal.
As to the music license, if they still need to pay per spin there is no economy of scale. I doubt ASCAP would allow any lump sum licensing fee, if one even exists, to cover an acquisition covered under a different agreement and avoid paying proportional royalties.
As to the music license, if they still need to pay per spin there is no economy of scale. I doubt ASCAP would allow any lump sum licensing fee, if one even exists, to cover an acquisition covered under a different agreement and avoid paying proportional royalties.
I believe their discount is with SoundExchange. Everything is negotiable.
I don't know if that's their rationale. I doubt very much that it is. I think their primary rationale is saving money on the employee side, and another platform for their original content. Pandora doesn't create any original radio shows. Just a transmission service for music. Sirius creates hundreds of hosted radio shows. This would make Pandora more like actual radio stations.
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