[ContemptofCourt]

If the contract that Stern inked with Sirius is even close to being accurate, can someone explain to me how they can possibly turn a profit even in the long run?

Stern was given $500M....a typical sat subscriber is thought to be worth about $500 total to the company....if Stern brings in 1M new subs, then his contract is paid for.

I'm sure that he has brought in 1M new subs (and SIRI must be as well, as they gave him the stock bonus). All in all, not that bad of a deal for SIRI (if, that is, they can keep from going BK).

[Shethink13]

Stern was given $500M....a typical sat subscriber is thought to be worth about $500 total to the company....if Stern brings in 1M new subs, then his contract is paid for.

That was for this year. What about next year? Do you think another 1 million will sign up? I think Stern got the bulk of his listeners off the bat. Do you disagree?

[iPod Shuffle]

Your math fails to take into account that they're still losing money on each new subscriber, Stern hype or not.

Stern (and the accompanying hype) may be more about pumping up the price of the stock than anything else.

[RS]

"Stern was given $500M....a typical sat subscriber is thought to be worth about $500 total to the company....if Stern brings in 1M new subs, then his contract is paid for."

"All in all, not that bad of a deal for SIRI (if, that is, they can keep from going BK)."

?? they do all of this to break even ?

Their stock almost hit 8 in Dec before he started broadcasting with them, now it's under 6 .