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.
The losers who listen to Stern on a regular basis are never going to pony up the dough to get satellite radio.
Guess again, this loser (I bet I make more than you :)) will pony up.
Sincerely,
The Loser.
How much more than Stern's salary does it take to bring in strippers and porn stars and throw stuff at them?
I'm in.
I've had XM for several months now and love it.
Been listening to Opie & Anthony on XM this week. They have been busting on Howard all morning. Funnier show than Howard is these days. Stern is a one trick pony. Howard is sooo over. I wonder if Sirius will even be around in 2006? XM Rulez!
Now you have. We've had XM since its inception and it's excellent. Laura Ingraham, Fox News audio feed, NASCAR live, plus any kind of music you want. We do a lot of long drives and now have no more station fiddling.
I just hope the rest go with him (Robin, Arty, Booey, Fred, etc.)
I like Stern, but the "cast" makes the show.
Great! His shows will be over eight years outdated by the time we hear them.
And the rest of us who care to discuss Stern and his show on this thread are supposed to care about you *not* caring because??????????
Don't like Stern? Turn the freaking dial.
Don't like Stern threads on FR? DON'T REPLY TO THEM.
Howard is 50 years old and has become what he used to ridicule. It's just about all over.
I just can't imagine that drive into the city (1:30) without that show...ugh!
The show has its ups and downs...
I bet it gets a lot better if he doesn't have to worry about the gubmint watching his every word.
You can get an XM receiver for your computer, as I did, for $50 and pay a $10 monthly fee with no minimum contract. It's easy enough to switch if Rush goes to the other guy.
I like Stern, but the "cast" makes the show.
They'll all go, and then some.
The opportunity of a lifetime.
I think Stuttering John is kicking himself right about now.
I'll bet Jackie even returns...............
The contract has already been signed. This will be big, you just wait and see.
Stock is up 16% already this a.m.
This post is way too rational for an internet thread. TAKE IT BACK!
I'll take Arty ofver Jackie (though I am probably in the minority).
Can't wait. Imagine him without a censor...
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