Posted on 10/06/2004 6:39:04 AM PDT by Silver Bird Worker
Controversial radio host Howard Stern will move his show to Sirius Satellite Radio Inc. in 2006, in an expensive gamble for the fledgling satellite broadcasting service.
Terms of the five-year deal weren't disclosed, but Sirius said it would spend $100 million a year to produce the show, including Mr. Stern's salary. Mr. Stern's contract with Viacom Inc. expires at the end of 2005.
Mr. Stern's show corners the radio market among males 18-49 years of age and ranks No. 1 in many of the 46 major markets where his show is broadcast.
"It has been my dream to have the top-rated show in radio since I was five years old," Mr. Stern said in a prepared statement. "Sirius -- the future of radio -- will take this dream to a whole new level as I bring my fans my show my way. It will be the best radio they will ever hear."
Sirius is betting big on Mr. Stern. The company revealed in a Securities and Exchange Commission filing Wednesday that its deal with Mr. Stern includes both cash and stock, and said it must make "substantial" stock payments if subscriber targets are exceeded. Sirius will also share a portion of advertising revenue with Mr. Stern once subscriber milestones are reached. Currently, Sirius provides commercial-free music and sports programming.
The company warned that it would need to generate an additional one million subscribers to cover the cost of bringing Mr. Stern on board. If it doesn't, the deal could have a "material negative impact" on the company's financial condition, Sirius said. As of June 30, 2004, Sirius had 480,341 subscribers, up 37% from first-quarter levels.
Sirius shares soared in early trading, jumping 65 cents, or 20%, to $4 on the Nasdaq Stock Market.
In a press released headlined "The Most Important Deal in Radio History," Sirius said it negotiated the five-year, "multi-million dollar" agreement with Don Buchwald, who represents Stern.
The agreement comes as the ever-controversial Mr. Stern was dropped earlier this year from some radio stations over his raunchy humor. Mr. Stern's future at Viacom has been up in the air for some time. Mel Karmazin, a fierce defender of Mr. Stern in the face of the government pressure, left as Viacom's president earlier this year.
As programming on regular terrestrial radio runs afoul of the Federal Communications Commission in its crackdown on indecent broadcasting, many hosts in hot water have cited satellite radio as a possible haven.
Over the summer, Sirius's archrival, XM Satellite Radio Holdings Inc., signed Bob Edwards, the original anchor of National Public Radio's "Morning Edition," to host a show. XM also hired Greg "Opie" Hughes and Anthony Cumia, a pair of radio "shock jocks" fired by Infinity Broadcasting Inc., the first instance of satellite radio providing a safe harbor for broadcasters deemed too raunchy for the public airwaves.
Excellent. He shouldn't be on public airways.
Really? Is he serious?
This could be series.
:o)
My prediction:
This Sirius/Stren deal will never be consumated.
As far as I'm concerned, eight light-years is not a safe distance when we're talking about Howard Stern.
I wonder how well Howard Stern will do in a market where you have to PAY to hear him?
I'm willing to bet that Sirius will lose their ass on him.
I know of a real good place he could take his show and it sure as heck would not clutter up any airwaves.
bye bye sirius....if they really think all these listeners will actually pay subscription fees to hear howard, they are foolish. Same problems subscription internet sites experienced - everyone wants it for free, especially when it has always been free. I really don't think anyone is going to run to subscribe just to hear dirty words on the airwaves.
Does anyone have Satellite Radio ?? I haven't heard anything good about it.
baba booey.
I bet I'm the only guy on here that enjoys listening to Stern...I think the show is pretty funny (of course, I change the channel when he starts the Bush bashing).
Oh well, maybe I will get that satellite service...commercials annoy me more than ever.
wow what great news. For those that don't listen to Howard, here is a trans script of every show he does. "Wow look at those breasts! Are those real? Bush sucks! Are you a lesbian! Wow look at those breasts! Are they real?"
Makes me really glad I selected XM for my satellite choice. I'll take Laura Ingraham and NASCAR over Stern any day.
Oh good, so I wasn't the only one thinking that.
Thank goodness. Now I don't ever have to run the risk of coming across his program.
I think I might get it, too.
Right now, the satellite radio business is all about subscriber numbers. XM is ahead, and Sirius needs to make big moves to grab press and add subscribers. Satellite radio has no where near the audience of broadcast radio - I think XM only crossed 2 million total listeners earlier this year. If a good-sized chunk of Stern listeners follow Stern to Sirius, the investment may be worth it.
I am waiting for Rush to go to either Sirius or XM before I make my decision as to which one to buy.
100 million dollars a year to produce the show?
ICEBERG DEAD AHEAD!!!!
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