Media International Concepts (MEIC) is restructuring its business...
Media International Concepts (MEIC) is restructuring its business model to specialize in creating content for satellite radio, but critics have questioned the L.A. firm’s timing. XM and Sirius both say they're depending less and less on 3rd-party content providers…
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as the companies grow their in-house production facilities. MEIC’s longstanding strategy has been to acquire and operate entertainment, educational programming and production companies and create synergies by exploiting traditional and emerging distribution channels, the company said. Its shift in focus, announced Mon., was prompted by management’s belief that the radio talk show market is rapidly growing and is a trend that presents them with “a giant opportunity.” MEIC officials said it wants to work with both satellite radio providers -- not compete against them -- and hopes to encourage shareholder growth by “cornering a sizable piece of this huge and growing market.” XM currently has 68 commercial-free music channels, virtually all of which are generated in- house, a spokesman said. Third-party provider Worldspace chips in African music and world music channels and Salem Communications stocks a Christian rock channel. On the news and talk radio side, XM depends on 3rd parties like Fox, CNN, MSNBC and Public Radio International to provide content, but the company’s own public radio channel is evolving, officials said. “As we get bigger we'll look at strategic opportunities to work with 3rd parties, but we do believe there is a big advantage in doing it ourselves,” an XM spokesman said. A Sirius official agreed. Sirius, which as little as 18 months ago was relying on outside outfits for almost all of its talk radio content, is “trending away from third parties,” the company said. All of Sirius’ 65 music channels are produced in-house, and all but 12 of the company’s 56 non- music are currently outsourced to “big, branded companies” like NBC, ESPN, National Public Radio and Discovery, the company said. Developing content in-house benefits XM and Sirius since they can retain creative control, quality control and timing of when a show or segment is introduced, they said. MEIC CEO Michael Marcovsky, a cable and cellular communications vet, is ex-chmn. of Nostalgia Network and former pres. of Olympic Entertainment Group.