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Transistor kills the radio star?

As contratações milionárias no satélite estão a custar caro

«The race for exclusive content on satellite radio is costing some serious money and could delay that industry's move from red ink to black ink, says Banc of America Securities analyst Jonathan Jacoby in a report published March 7. The BofA report comes at the same time Sirius Satellite Radio announced it had signed Candace Bushnell, New York Times bestselling author and Sex and the City creator for a weekly four-hour call-in Talk show. The show, called Candace Bushnell's Sex, Success and Sensibility will debut this spring. Sirius' latest deal follows a month after XM Satellite Radio announced it will pay Oprah Winfrey's Harpo Productions $55 million to program a channel, including original content and regular segments from personalities on Oprah's TV show, her magazine O, and a weekly reality show with Oprah and Gayle King. Although Jacoby wrote that he remained "positive" on the satellite radio industry, he also expressed worries about "rising fixed costs (e.g., content)" that could "create uncertainty over the timing of positive free cash flow." Sirius will spend about $240 million this year on programming and content -- and about $16 million of those costs this year will come from deals already announced, including Cosmopolitan, Playboy, Blue Collar Comedy, the renewed Fox News/Fox News Talk deal and the recently announced Court TV deal. Sirius' NASCAR deal will add $22 million in programming costs in 2007»

(fonte: Mediaweek, Content Costs Could Delay Satellite Profits, Katy Bachman and Tony Sanders, Billboard Radio Monitor,MARCH 07, 2006; via Obercom)

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