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Howard Stern signed to Sirius


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#1 of 101 Prentice Cotham

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Posted October 06 2004 - 12:39 AM

Howard just announced that he has signed w/ Sirius for 2006 once his contract with Viacom is up. That just confirms that I'll eventually pick up Sirius.
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#2 of 101 Chris

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Posted October 06 2004 - 01:04 AM

This is a five year contract with negotiated terms giving him music influence over 3 streams at SIRIUS.

Contract will start effective of January 1, 2006; however, Stern & Viacom have options to waive the remainder of his contract (ie, Viacom can decide at any point in the year to advance the date to move him off their radio waves).

Stern may exert force over streams given to him before his radio show moves to SIRIUS on January 1, 2006, while his radio show continues on Viacom.
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#3 of 101 Chris

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Posted October 06 2004 - 01:11 AM

http://biz.yahoo.com...6/nyw109_1.html

Quote:
NEW YORK, Oct. 6 /PRNewswire-FirstCall/ -- "King of All Media" Howard Stern and SIRIUS (Nasdaq: SIRI - News) announced today an epic agreement whereby Stern will move to SIRIUS beginning January 1, 2006. SIRIUS is the premium satellite radio provider known for delivering the very best in commercial-free music and sports programming to cars and homes across the country.

The press release.
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#4 of 101 Matt Krapf

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Posted October 06 2004 - 01:14 AM

Ha ha. I thought I might be 2nd or even 1st to post.
Damn rush hour traffic. lol

Anyway, My car has XM not Sirius. Looks Like I'm trading up sooner than expected.

ANy thoughts on the implications of Howie going to Sirius vs XM? Opie and Anthony start on XM this month. One school of thought would have said that Howard and XM are at the top of their games, and thus would have gotten together.

I think, now, that Sirius, lacking a real cornerstone to their programming, and losing share/penetration to XM needed a killer app. In Howard they can have it. What's more, because O&A will have been on XM for a year before Howard could even plan to...they'd assume the top spot of favor and publicity they will have earned by then.

In a way, it's a shame (for me) because I wanted him on XM. But (for him) it sounds like a better deal all around.
3 Channels. Obviously a cut of the ordinary and premium channel revenue stream, AND...without a doubt...generous stock options.
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#5 of 101 Michael St. Clair

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Posted October 06 2004 - 01:20 AM

Huge news for Sirius. No other radio show would sell as many tuners/subscriptions by moving to satellite.

#6 of 101 Chris

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Posted October 06 2004 - 01:20 AM

SIRIUS has managed to put together several very good months; mostly due to the NFL, which has really driven their sales since August.

Announcements of other sports networks (like NCAA contracts) helped as well, and have kept the ball rolling for them as far as growing thier base demographic.

SIRIUS's deal in August to put them in Walmart stores nationwide, as well to openly market the NFL, have been good signs for their overall growth of customer base.

While I'm not in any way a fan of Howard Stern, the signing puts them back into the news, and allows them to add more that they can market as "Exclusive" with high demographic content.. ie, "Exclusive NFL" "Exclusive Stern" "Exclusive Eminem' "Excluse NCAA Football from x Schools" and so on.

The better news for SIRIUS is that this news put them on the front page at MSNBC, WashingtonPost.Com, Drudgereport, and elsewhere, increasing their name recognition free. Which doesn't hurt at all.
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#7 of 101 John Mansor

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Posted October 06 2004 - 02:32 AM

I will look into getting SIRIUS because of this.

#8 of 101 BrianAe

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Posted October 06 2004 - 02:41 AM

This is huge! I think it is good for sat radio in general. First Bob Edwards to XM and now this!

#9 of 101 Zen Butler

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Posted October 06 2004 - 02:59 AM

Quote:
I will look into getting SIRIUS because of this.


Same here.

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#10 of 101 Mark Sherman

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Posted October 06 2004 - 03:23 AM

One more for signing up for Sirius.
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#11 of 101 Brian L

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Posted October 06 2004 - 03:48 AM

Competition is a very good thing, IMHO.

While I can not for the life of me even begin to fathom the attraction of O&A and Stern (and I like foul language, women with large breasts, and lesbians as much as the next guyPosted Image), it seems to me that with all the noise XM generated when they snagged O&A, Sirius had no other choice but to open the check book, right?

And really, who else could they have signed to trump XM on shock jocks other then Stern?

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#12 of 101 Michael St. Clair

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Posted October 06 2004 - 04:47 AM

Quote:
it seems to me that with all the noise XM generated when they snagged O&A, Sirius had no other choice but to open the check book, right?


It's interesting that they only have to sell 1 million additional subs to cover the Stern contract. Stern will sell more than a million subs.

#13 of 101 Josh Simpson

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Posted October 06 2004 - 04:50 AM

Now maybe he will get over his "the world is out to get me" whining.

However, I'm all about competition. Good deal for Sirius.

#14 of 101 Philip Hamm

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Posted October 06 2004 - 06:09 AM

Quote:
Now maybe he will get over his "the world is out to get me" whining.
But that's the cornerstone of his whole schtick. I can't see it going away.

This is a great thing because it means a lot less people will end up being exposed to that mean spirited (but sometimes quite amusing) jack-ass.
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#15 of 101 ChadM

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Posted October 06 2004 - 06:17 AM

Stupid question of which I am sure the answer is yes -

Will he still be subject to FCC rules and regs?

Edit - Count me in for a sub beginning 06!

#16 of 101 Prentice Cotham

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Posted October 06 2004 - 06:46 AM

Chad,

No, that's a big part of the reason for Howard signing up w/ Sirius is the get out from under the thumb of the FCC.
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#17 of 101 Chris Lockwood

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Posted October 06 2004 - 07:10 AM

Wow, I didn't realize there was a Satellite Radio forum here (or any radio forum).

I still remember 10 years ago when Howard was saying he was going to retire in a year or two from then.

#18 of 101 Michael St. Clair

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Posted October 06 2004 - 07:17 AM

Quote:
This is a great thing because it means a lot less people will end up being exposed to that mean spirited (but sometimes quite amusing) jack-ass.


Don't those people know how to choose what channel they listen to?

I also hear a lot of mean spirited jackasses on AM radio in the afternoon.

Quote:
I still remember 10 years ago when Howard was saying he was going to retire in a year or two from then.


It's called a negotiating tactic. Everybody wants to 'call it quits' after they finish their current contract. Just ask the cast of Friends, Ray Romano, etc. Show me the money.

#19 of 101 TheLongshot

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Posted October 06 2004 - 07:58 AM

Course, as a Sirius shareholder, I wonder about all the cash they are laying out for first the NFL, and now Stern. It certainly feels risky and desperate on their part, and I worry a bit about them making their goals. How many people who currently listen to Howard for free will be willing to pay to listen to him?

Quote:
This is a five year contract with negotiated terms giving him music influence over 3 streams at SIRIUS.


So, what streams are they going to give him? Are these going to be new ones, or already existing ones? It doesn't surprise me that he'd get a music stream, since he's always talking about bands on his show.

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#20 of 101 Chris

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Posted October 06 2004 - 08:14 AM

Quote:
Course, as a Sirius shareholder, I wonder about all the cash they are laying out for first the NFL, and now Stern. It certainly feels risky and desperate on their part, and I worry a bit about them making their goals. How many people who currently listen to Howard for free will be willing to pay to listen to him?

Right now, according to Arbitron, Stern gathers about 15 million listeners. SIRIUS is hoping to capitalize on about 1/4 of that, or about 4 million subscribers once he becomes exclusive to them.

Because the contract doesn't start until Jan 1, 2006, SIRIUS isn't paying stern a penny until then, so they get more then a year of free advertising as Stern will mention to the 15 million audience his move and that they should, of course, get SIRIUS.

So, for a year and a half SIRIUS gets free advertisement, basically, to dedicated listeners, etc. Meanwhile, the NFL has already done very well by SIRIUS subscriptions, so I think they are pretty happy with those results.

BTW, in a poll done today:

Quote:
Flyonthewall.com
SIRI & XMSR: Howard Stern deal is huge for satellite radio in general@BEST
40% of Howard Stern listeners said they would sign up for satellite radio. Expect SIRI will have to access capital markets. XMSR remains market share & technology leader. Expect XMSR to release a walkman type device shortly and to sign Toyota.

40% of 15 Million arbitron would be slightly under 7 Million subscribers. Not a bad bit.
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