Can Sirius XM’s New MLB Deal Boost Revenue?
A long-awaited deal with Major League Baseball will soon allow all Sirius XM (NASDAQ:SIRI) subscribers to listen to live baseball, rather than only those equipped with XM radios. The new deal, which is projected to boost revenue for the satellite radio company, will allow the entire 25 million subscriber base to access broadcasts of professional baseball games from the MLB.
While Sirius XM users could access live games on mobile devices and the website before the new deal, customers were unable to listen to games on Sirius car radios — something which had led to complaints. The financial terms of the six-year contract was not revealed, but analysts estimate that the deal could push millions of Sirius XM customers to upgrade their service.
Sirius XM customers will have to subscribe to a package that costs $17.99 a month and won’t be included in the basic package which costs $14.49. Customers with XM radios will see no change in their service. Barton Crockett, an analyst at Lazard Capital Markets, explained, ”We see these deals as a meaningful step-up in content that drives sub growth and separates Sirius XM from music services like Pandora and Spotify.”