Sirius XM Drops NFL Ball Again

Sirius (SIRI) has had the NFL for years. Every year investors wait with baited breath for the NFL on Sirius ads to begin. Each year brings disappointment as very few ads are ever seen. The NFL kicks off the 2008 regular season on Thursday, Sept. 4 and there should have been, as there should have been for years now, a major campaign of “every team, every game!” It worked well for XM in the second quarter, as we witnessed better than expected numbers. I attribute those numbers to a well run campaign to inform the masses of their MLB offering. I can still hear Big Poppy saying in that strong Latino accent; “read my lips, every GAIN!” 

I have seen dozens of Direct TV (DTV) ads for the start of the NFL season. Most people, however, have cable television and have very limited options when it comes to listening to their favorite teams. There are tens of millions of “out-of-market” NFL fans who do not subscribe to Direct TV. As a Dolphin fan who lives in the Northeast, this is one of my favorite things about Sirius….especially this time of year. The boys come over on Sundays and we barbecue and listen to the game on the back deck, shoot hoops or entertain the masses….

Yet not one commercial has been played. Not one print ad has been spotted. Sirius is fumbling the ball on this one, again. The popularity of fantasy football leagues has broadened even further the opportunity for Sirius XM to cash in on this very expensive NFL deal.  With an estimated 35 million out-of-market fans, Sirius is passing on $5.5 BILLION in potential annual subscription revenue.

There are two places I know of to learn that Sirius XM has every NFL game. Sirius.com and NFL.com. Of course, you have to fish around the NFL.com website to find the radio link that links to Sirius, which of course you would have to be looking for to spot. And if not for a few mentions in conjunction with the signing of Chris “Mad Dog” Russo, another NFL season will kick off while others pay Direct TV $275.00 extra for football season, while the $12.95 Sirius option remains unknown to most fans.

It seems to me that if Sirius had no involvement with XM prior to the merger, they should have had plenty of time to develop a marketing campaign directed towards the 2008 NFL season. If the merger had not been approved, it would have only been prudent that a forward looking business plan should have been put into place. The merger should not prevent Sirius from aggressively marketing one of its most prominent content exclusives to increase productivity in the third quarter. It certainly did not stop XM.

Hopefully in writing this I have handed the ball to Sirius XM. It's now up to them to run with it.

Position: Long SIRI

Comments

[nick d'john:]

Give'em time, Mr. Matthews. Maybe they're including the NFL in
their Labor Day holiday-barrage. Besides, they're organizing the
"packages" to be included in those Labor day announcements,
especially, I'd say, for the XM consumer.

2008 Aug 23 05:06 PM

[ZenInvestor:]

Brandon, you are getting a little 'shrill' here. The announcements in the coming weeks should make you happier, but prior to the merger they could not know how they were going technically accomplish the the 'best of' program. In a few weeks the joint advertising strategy will be developed or set, and you will get what you want. Until then, you are really stretching it about they could and could not actually do. Relax!

2008 Aug 23 05:59 PM

[screamer:]

I have to agree with Brandon. This is a missed opportunity. Promotion of the NFL should have started in July for maximum effect.

In this day and age, if you have ANYTHING to do with the NFL, you flaunt the hell out of it. There's a reason the NFL is the most lucrative sport on the planet, and sitting idly on the sidelines, passively hoping for subscribers, is a shame.

2008 Aug 23 07:20 PM

[ARI D K:]

Kick off will start after Labor Day

2008 Aug 23 11:06 PM

[broncofan:]

You're wrong.... I've seen Sirius commercials daily on the NFL network which is a pretty good place to advertise if you're trying to get real NFL fans. I took 2 long road trips this week and was happy to be able to listen to games as I drove.

2008 Aug 23 11:42 PM

[EMIL J KOVA...:]

I Doubt If A "Massive Ad" Campaign Would Have Helped Much.
One Thing I Learned About The Advertising Business, Is, A Lot Of People Spend Alot Of Money, Telling The Public, What They Already Know.
NFL Has Such A Large Audience, And Close Following, Very Few Fans--Don't Know That SATRAD Carries The Games.
The Price, And need Of A Receiver, Is The Problem.
Hopefully The Marketing Staff Will Price It Right, with The Right Package.
But, Don't Hold Your Breath,
There Is money Money In SATRAD--Then Talent.
EMIL J KOVACH JR

2008 Aug 24 09:45 AM

[ksmithdc:]

Interesting read. Let's see how it works out.

2008 Aug 24 11:05 AM

[wilber:]

I'm glad to see Mel K. not going hog wild and needlessly spending much needed cash on advertising. People who want full NFL radio coverage already know where to find it. SIRIUS.

2008 Aug 24 01:31 PM

[East Dallas...:]

I couldn't agree more. I've been a Sirius subscriber since 2004, and I've always felt as thought having most major sports should be the second biggest draw they have (behind Howard). Yet they have never really advertised it. When I tell a friend about it, they are amazed that they can get every game, even the opposing team's broadcast.

2008 Aug 24 03:02 PM

[stern_will_win:]

Excellent article. As someone who worked in marketing, I can tell you that contingency plans are almost always made...except at Sirius. In this case, a team should have been in place planning for merger approval just in time for the NFL season. Granted, ALOT of lead time is needed for a massive promo plan, so Brandon discounts that a bit. SIRI should've had a minimal, bare bones campaign in the can and ready to roll though. If they didn't, shame on them.

2008 Aug 24 08:49 PM

[cyberxen:]

Correction from Red Sox Nation:

That's Big "Papi" not "Poppy"....

SiriusXM could use a major marketing campaign right about now, any idea what they are waiting for?

2008 Aug 25 10:05 AM