"XM for Business" service now managed by PlayNetwork - Orbitcast

"XM for Business" service now managed by PlayNetwork

| 5 Comments

XM for Business

PlayNetwork, a Redmond-based B2B media services company, will now manage all of XM Satellite Radio's commercial business sales and service.

The new “XM for Business” service will let business clients benefit from PlayNetwork’s infrastructure that is specialized specifically for these types of commercial services. Previously, XM's business sales structure largely consisted of just a website, with little else in terms of B2B support. And understandably so, XM is primarily a consumer-focused company, so that's where resources are focused.

Now with this partnership, XM can provide access to PlayNetwork’s nationwide network of dealers, equipment distributors and customer service reps. Companies like Dynamic Media (which provides commercial services for both Sirius and XM) stand to hold a fairly significant positive effect from this deal because systems like price discounting, installation support and commercial activations are now in place.

PlayNetwork will also report and pay all commercial licensing and royalty obligations to the artists, songwriters, publishers and recording labels through their previous relationships with licensing agencies. Not a bad deal.

Check out xm4biz.com for details on the service.

[Press Release]
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5 Comments

I have heard XM in many places but Sirius has had this set up now for over a year... Now XM gets around to doing this? Whats more interesting to me is that if this merger were going through.... why would XM start this now with Sirius having a year and a half head start if they were gonna merge anyway. Someone plese point out why for me .... please.

XM's commercial music, to date, has been marketed through DirecTV's commercial music service, I believe. And it is everywhere -- much greater market penetration than SIRI's service. However, there is reason to believe XM makes very little money on the DirecTV deal (VERY little). So, perhaps XM decided it should be making a bigger chunk of money on this.

As to the merger, I don't see that it matters. Even if the merger occurs, the two services are going to be independent for a long time -- years (although, probably broadcasting the same music content much more quickly than most of us anticipate). So, why not?

Exactly right.

I think people are reading too much into any of these deals being announced recently (which, since we're all desperate for SOME sort of sign on the merger, is understandable). But just because there's a merger going on, doesn't mean that business has to stop. And rightly it shouldn't. There's money to be made, and a business to run.

Also remember that a lot of these deals don't just happen overnight. This deal, like all the others, has been in the works for some time. They just announced it now. :)

XM has thousands of commercial retail companies around the country selling XM Radio equipment (but without the ability to activate or direct bill customers). Sirius has a few resellers who are approved to sell both equipment and service to commercial customers (and do the direct billing). With this partnership XM will be able to pass off the management of all the commercial retailers (and activation process). This will help the thousands of small retailers better manage their commissions and also have better support for activation and account management. It will also empower the high volume resellers to do more business and have more resources for promotions and marketing support.

I think the timing of this is well planned as it places Play in a position to possibly be the company managing the new "combined" commercial business model.

XM has thousands of commercial retail companies around the country selling XM Radio equipment (but without the ability to activate or direct bill customers). Sirius has a few resellers who are approved to sell both equipment and service to commercial customers (and do the direct billing). With this partnership XM will be able to pass off the management of all the commercial retailers (and activation process). This will help the thousands of small retailers better manage their commissions and also have better support for activation and account management. It will also empower the high volume resellers to do more business and have more resources for promotions and marketing support.

I think the timing of this is well planned as it places Play in a position to possibly be the company managing the new "combined" commercial business model.