He just inked a 5 year - $500Mdeal w/Sirius Satellite Radio. Details to follow.
Printable View
He just inked a 5 year - $500Mdeal w/Sirius Satellite Radio. Details to follow.
Howard Stern Jumps to Satellite Radio
Wed Oct 6, 2004 05:03 PM ET
By Franklin Paul
NEW YORK (Reuters) - Howard Stern, the ribald radio host who has become a poster boy for bad behavior on U.S. airwaves, will jump to Sirius Satellite Radio (SIRI.O: Quote, Profile, Research) in January 2006, freeing him from the grips of regulators and giving the nascent satellite radio sector a big boost.
The $500 million, five-year deal, announced by Stern and Sirius on Wednesday, lures Stern away from Viacom Inc.'s (VIAb.N: Quote, Profile, Research) Infinity Broadcasting, and will propel a subscription-based radio business modeled on cable television.
It also shelters him from some of his critics.
"I haven't been able to communicate with my audience because of all the restrictions that the government has imposed. I am being hammered by the religious right," Stern said in an interview with Reuters.
"I am radio's biggest star and I have decided that satellite radio offers me more potential than terrestrial radio."
The deal gives a much needed shot in the arm to Sirius, which lags behind larger competitor XM Satellite Radio Holdings Inc.(XMSR.O: Quote, Profile, Research) , and establishes the medium as a competitive alternative to traditional radio. Investors cheered the news, lifting Sirius shares 15.5 percent to a two-year high.
"This demonstrates that high-quality programing and talent are now willing to move to satellite radio (and) could change the...dynamics," said Banc of America analyst Jonathan Jacoby in a client note. "Other major radio personalities must now be thinking about their long-term future on terrestrial radio."
The deal also offers Stern free rein for his often off-color show, which includes such segments as "Lesbian Dial-A-Date," in which he plays matchmaker in a mock game show that has been criticized as being offensive.
Stern was dropped earlier this year from several stations owned by the largest radio station owner, Clear Channel Communications Inc.(CCU.N: Quote, Profile, Research) , which was fined $1.75 million for indecency.
The U.S. Federal Communications Commission regulates radio broadcast programs but does not regulate satellite radio programs. On his radio program on Wednesday Stern labeled the broadcast radio climate as "too restrictive" and lashed out at Clear Channel.
"I will bury you," he said. "I am not going to sit still and let Clear Channel win this battle against me, it's personal. Give me five years with this company Sirius."
Viacom spokesman Dana McClintock responded, saying: "We have 185 stations with a lot of great talent. This announcement is not material to Infinity or Viacom."
NEEDS A MILLION CLIENTS TO COVER COSTS
Sirius currently has more than 600,000 subscribers, a fraction of Stern's current audience of 12 million listeners on broadcast radio, where he ranks No. 1 in 46 large markets across the country. Sirius said it would need to add 1 million subscribers to cover the cost of the five-year deal.
Analysts' say the deal establishes satellite as a magnet for advertising dollars, likely at the expense of traditional radio.
"Howard Stern will most likely bring a large piece of his advertiser base with him, and that is incremental revenue and margin to us," Sirius Chief Executive Joseph Clayton told Reuters.
Sirius said it would spend $100 million per year toward Stern's broadcast, which includes $80 million for the salaries of Stern and his staff as well as other production costs, and the rest in stock-based compensation. Sirius declined to give details on how the stock will be awarded.
"It is rich -- they are paying a lot, and I'm sure XM helped bid the price up, but Sirius had to do it," said IRG Research analyst David Kestenbaum. "It is great news."
Indecency on the airwaves became a national issue earlier this year when Janet Jackson bared a breast during the National Football League's Super Bowl half-time show on CBS, which is also owned by Viacom.
In August, XM, which boasts more than 2 million subscribers, signed bawdy morning talk show team "Opie and Anthony" to one of its premium channels beginning this month. The two were fired by Infinity in 2002 after they broadcast a segment on a couple purportedly having sex in a prominent New York City church.
XM charges an additional $1.99 a month on top of its regular $9.99 monthly fee for the service. In contrast, Sirius will make Stern's show part of its $12.95 monthly service, but it said Stern will have the opportunity to develop one or two other premium channels for the service.
Sirius shares rose 52 cents to $3.87 in active trade on Wednesday on Nasdaq, while XM shares fell 2 percent to $29.00 on Nasdaq. Viacom shares rose 25 cents to $36.16. (Additional reporting by Derek Caney in New York and Arthur Spiegelman in Los Angeles)
Wow that is huge news. I was thinking of getting Sirius or XM, cause I am in the car all day. This will not push me over the edge, since I don't listen to Stern. It will, however sway me to Sirius, cause they will be getting a lot of money from advertisers to put out more programming. Cool news, thanks.
I have sirius...I like it a lot better than XM, much better channels overall.
I just hope Howard gets them out of the tremendous debt that they are in...
I have been listening to the Opie and anthony show, which just started on XM this week. Those guys kick Howards ass, more funny. Howard is washed up/yesterday's news.
I agree. Between the divorce, Jackie quitting and stuttering John going to Leno, the show's been going downhill faster than Nobis in the Chugach.Quote:
Originally Posted by Crinkle
John sucked, IMO, good riddance to him. I think the show is still funny. Artie cracks me up.Quote:
Originally Posted by Plakespear
My wife bought a lot of Sirius stock when Howard first suggested he might go to satellite radio. She's very happy today :)
I will be picking up SIRIUS in the near future.
O&A are funny as hell, they got me through a long commute home many a day, but their "cringe radio" sometimes made me cringe too much. Norton rules though and seeing Voss on LCS was cool. I'll stick with the original though and support Stern.
Infinity must be crapping in their pants today.
The 500 million dollar nipple. Howard is such a lucky shmuck. Rodney's eyes must be buggin in comedy heaven :eek:
Artie is a riot. But Stern jumped the shark about a year after his movie.
(sirius will be arriving tomorrow)
I dunno... Infinity is a huge-ass company. They have 26.2 billion in revenue, 100 million of which comes from Stern. (They claim...)Quote:
Originally Posted by IBISguru
Seems like a drop in the bucket, eh?
I have xm and absolutely love it. This Stern thing is good for both satellite companies and, ultimately, good for the music industry and that means it's good for us, the consumer. Just as HBO and Showtime (yes, even Showtime) have raised the bar in original programming and forced the networks to think outside the box a little, satellite radio raises the bar in the music industry. With a satellite radio, you aren't stuck listening to the same 20 songs that the music industry forces upon you, you have choices - and you have MANY MANY choices. Your ears will never be the same, those of you now getting satellite. It's a love affair. Every single day I use my little memory button on my tuner because I've been turned on to a new song or new artist. While I think xm is a better service, I'm thrilled that Stern has generated all this attention. Once in a blue moon I'll watch Stern on E! and that's enough for me, so this wouldn't sway me. I wish had bought the stock, though, that was very smart of Mrs. AD.
Quote:
Originally Posted by yogachik
Does this store a copy of the song or just the title? Trying to sell this medium to the other wage earner in my house.
In which alternate reality are these dorks funnier than Howard? You're just upset cuz Colorado is too conservative to keep him on air.Quote:
Originally Posted by Crinkle
The show's gotten so much better since Jackie left, and Stuttering John was fat, lazy and unfunny. Good riddance.
Just title and artist. Someday I'm sure the technology will be there to store the song (although there are those pesky copyright laws).Quote:
Originally Posted by IBISguru
Switching to satellite radio is like switching to cable TV - I don't know anyone who has only 13 channels to choose from on their tv anymore, do you?
stern is 5x's as funny as those loser dorks. He should be having a 'funeral' for those guys soon.. Where do you think Ohhhhpie and Assthony get their material from?Quote:
I have been listening to the Opie and anthony show, which just started on XM this week. Those guys kick Howards ass, more funny. Howard is washed up/yesterday's news.
stuttering john an ass-wipe who will forever regret jumping ship, especially now considering Leno is such a fat-turd and losing viewers faster than an inch at bear mtn. Uh, lets see....I think I'll be retiring in 2031...maybe.
Jackie? who? The only funny thing about that selfish load w/his wife making out w/all the actors on her waaaayyyyy off broadway 'production'. Now she's left him and he's eating frozen lobster from the ACME and selling used CD's from his basement on Long Island. Loser.
Yes, my parents.Quote:
Originally Posted by yogachik
Quote:
Originally Posted by The AD
Soon, me too.I'm moving to the beach and after looking at cable programing, I don't see anything there worth spending $600. + per year to see. I feel the same way about subscriber radio. There is no way I will drop my hard earned bucks on stuff like that.
I have a friend who is in deep financial kimchee. His monthly bills look something like this:
cell phone $60.00
isp service $40.
cable tv $60.
xm radio $20.
home phone $65.
on star$25.
thats $3240. per year for what?
of course on top of that add car payment and mortgage + the usual life bs
sorry but I don't swim in anyones cash stream ever for any reason
[QUOTE=Anxious Mo-Fo]In which alternate reality are these dorks funnier than Howard? You're just upset cuz Colorado is too conservative to keep him on air.
[QUOTE]
I could care less, to each their own. I listened to Stern for years, its just the same old shtick. O&A makes me laugh. you do not.
edit: oh yeah have fun waiting till 2006 to hear him on Sirrus
That's recockulous. A mere modicum of research would save him some serious cashish.Quote:
Originally Posted by mrw
Verizon has a plan for $60: 800 min, UNLIMITED In-calls (read: you don't pay if someone calls you,) free nights (7pm) and weekends. If he works during the day he'll never need a second phone. Savings: $65/moth, $780 annually.
A Cable/HS Internet bundle can be gotten starting around $70, depending on where youlive. Look at Cox Communications for availability. Savings: $40/month, $480 annually.
Oh, fuck On-Star. Become a AAA member ($54/year) and don't lock yourself outta yer car. Savings: $246 annually.
Tippster,
I am now sending you my monthly budget for you to slice and dice. Daddy needs a new pair of shoes!