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SiriusXM Secures Exclusive Rights to "SmartLess" Podcast in $100 Million Deal
Ticker Tea
January 30, 2024
💬 STOCKS MENTIONED: $SIRI
📝 SUMMARY: Sirius XM Holdings Inc. ($SIRI) has made a strategic move in the podcasting arena by acquiring exclusive rights to "SmartLess," a renowned podcast hosted by actors Will Arnett, Jason Bateman, and Sean Hayes. This deal, valued at over $100 million, represents a significant shift in the podcast landscape, as "SmartLess" transitions from Amazon to SiriusXM for a three-year term.
Since its inception in 2020, "SmartLess" has gained immense popularity, featuring interviews with world leaders, pop stars, and Hollywood executives. Its success is evident in its large, dedicated fanbase and its past deal with Amazon, which secured the distribution rights for $60 to $80 million. Amazon's strategy involved exclusive early access to new episodes on its platforms, Amazon Music ($AMZN) and Wondery+, before wider release, a tactic aimed at user acquisition.
The agreement with Sirius includes not only the rights to distribute and monetize "SmartLess" but also encompasses other programs like "Bad Dates" and live events. Additionally, it grants access to the podcast's extensive library of previously aired episodes. This acquisition is a major component of SiriusXM's strategy to fortify its position in the competitive podcast market and to attract more users to its service, including the SiriusXM Podcast Network.
SiriusXM, a satellite radio and streaming service, has been actively enhancing its online presence to rival platforms like Spotify and Amazon. The company launched a new streaming service last year, aiming to broaden its reach in the digital domain. As of the third quarter, SiriusXM reported 34 million subscribers and roughly 150 million listeners, with anticipation for its year-end financial results.
The deal's announcement comes at a time when podcast market dynamics are shifting. Major players like Spotify and Amazon have previously invested heavily in acquiring studios and shows, though there's been a recent trend of reduced spending in this sector. The "SmartLess" acquisition by SiriusXM underscores the ongoing evolution and high-stakes nature of the podcasting industry.
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