Yesterday, I wrote about the recent Audacy partnership with SiriusXM, which begins later this fall. For Audacy, the partnership is a huge win. It places 23 of its top sports brands on SiriusXM for a different audience to discover, consume, and engage with. Instead of simply moving stations from AM to FM, the deal signals a much larger bet. One that breaks barriers well beyond any frequency and bets more on the future of the format itself.
Then there’s SiriusXM’s side of the partnership. Looking at this side of the coin, I’m left with more questions than answers. Let me explain why.
Earlier this year, Netflix arranged partnerships for exclusive access to video versions of podcasts from The Ringer, Barstool Sports, and iHeartMedia. One question lingered after the partnership was announced: Would consumers pay for something they already receive for free?
The goal was simple. The world’s largest streaming platform wanted to cut into YouTube’s growing share of podcast consumption. YouTube doesn’t have to pay creators to distribute content on its platform, yet it benefits in countless ways from having that programming available.
The Netflix Example
Netflix paid significant sums to secure exclusive rights to long-form video versions of those podcasts. The company certainly isn’t struggling financially, but the early results are beginning to answer the questions many raised from the start.
In June, Edison Research found that only 14% of weekly podcast listeners used Netflix to consume podcasts during the first quarter. Puck’s Matthew Belloni also reported that no video podcast cracked Nielsen’s weekly Top 10, a list Netflix programming typically dominates.
There’s one important distinction, though. Netflix placed a video product behind a paywall while the audio version remained available everywhere podcasts are distributed. The consumption experience is different. Audio offers an intimate, on-demand experience, while video demands more attention and creates a lean-in viewing experience.
Earlier this month, during the company’s biannual viewership report, Netflix didn’t even break podcast viewership into its own category. Instead, it lumped those numbers into its “Other Shows” category alongside non-podcast programming.
The objective is obvious from Netflix’ standpoint. More subscribers create more revenue, more advertising opportunities, and more resources to invest in additional programming. At its core, Netflix is a subscription video platform paying for the exclusive rights to a video version of an audio product.
SiriusXM is now taking a similar approach. However, the difference is it’s an audio platform behind a paywall that is paying for the rights to carry 23 proven sports radio brands’ audio from around the country. The same question applies here as it did with Netflix: Would consumers pay for something they can already get for free?
With Netflix, at least you can argue that watching a video podcast offers a different experience than listening to the audio version. You can’t make that argument with the SiriusXM-Audacy partnership because the product is exactly the same.
The New SiriusXM?
I remember when SiriusXM positioned itself as the alternative for listeners looking for something different from traditional radio. Rawer. Fewer commercials. Crystal-clear reception across the country. No holds barred. Expanded playlists.
It was the cool, shiny new object in the audio industry.
Now, that object is evolving into more of a distribution hub. SiriusXM is now adding proven brands with massive local and national appeal. The kicker is that these brands are already available through over-the-air radio, station apps, social media, video platforms, and connected devices. Most consumers can access them easily and for free.
If the goal is to gain subscribers, why would consumers pay for something they can already access in the same form anytime and virtually anywhere?
Radio signals remain what they’ve always been. They weaken over distance. Cars, however, are more connected than ever. The dashboard has become an entertainment center that syncs with your smartphone and reflects your personal listening habits. Everything SiriusXM is now paying to distribute is already accessible through other apps that don’t cost consumers anything.
There’s also another consideration. By introducing more proven brands, SiriusXM risks pulling paying subscribers away from programming it created to differentiate itself from traditional radio. Mad Dog Sports Radio, for example, was built around the success of Chris “Mad Dog” Russo at WFAN. By adding WFAN to the platform, SiriusXM creates direct competition for a brand that helped establish its own sports identity.
None of this means the Audacy-SiriusXM partnership is destined to fail. In theory, SiriusXM gains respected brands, greater programming depth, and additional advertising opportunities. Audacy expands its reach and introduces its stations to listeners who may not have discovered them otherwise.
On paper, it’s easy to see why both companies agreed to the deal.
Will People Subscribe
But the real challenge isn’t adding great content. It’s convincing consumers to change habits they’ve spent years developing. Netflix is learning in real time that paying for exclusive access to content people already enjoy elsewhere doesn’t automatically persuade them to open their wallets. SiriusXM now faces a similar test.
Sports radio listeners have never had more ways to consume their favorite stations. Whether through over-the-air radio, station apps, YouTube, podcasts, or connected dashboards. If those habits are already deeply ingrained, placing the same content behind a subscription may not create the urgency SiriusXM hopes for.
The partnership may ultimately prove to be a smart strategic investment. But if Netflix’s experience has taught the media business anything, it’s that consumers don’t pay simply because content moves behind a paywall. They pay when the experience offers something they can’t get anywhere else.
That’s the lesson SiriusXM will have to prove it has learned.
Barrett Media produces daily content on the music, news, and sports media industries. Sign up for our newsletters to stay updated and get the latest information right in your inbox.
John Mamola is Barrett Media’s sports editor and daily sports columnist. He brings over two decades of experience (Chicago, Tampa/St Petersburg) in the broadcast industry with expertise in brand management, sales, promotions, producing, imaging, hosting, talent coaching, talent development, web development, social media strategy and design, video production, creative writing, partnership building, communication/networking with a long track record of growth and success. He is a five-time recognized top 20 program director in a major market via Barrett Medi’s Top 20 series and has been honored internally multiple times as station/brand of the year (Tampa, FL) and employee of the month (Tampa, FL) by iHeartMedia. Connect with John by email at John@BarrettMedia.com.