It’s Official: Sirius Signs Shock Jock To $100-Million Deal
Controversial DJ Howard Stern signed a multi-year contract to join New York City-based Sirius Satellite Radio [SIRI], starting Jan. 1, 2006. The deal will cost Sirius $100 million a year but it could pay for itself if approximately one million subscribers sign up for the service due to Stern’s expected arrival.
Sirius CEO Joseph P. Clayton called Stern an “entertainment force of unprecedented recognition and popularity in the broadcast world…capable of changing the face of satellite radio and generating huge numbers of new subscribers for Sirius.”
The $100 million annual price would compensate Stern and his staff as well as covering other costs that include production, overhead, construction of a dedicated studio, and the development of additional programming and marketing concepts to capitalize on Stern’s arrival. The deal is high-cost but it helps Sirius to further establish itself as a premium satellite radio service to justify its higher monthly subscription price of $12.95, compared with the $9.99 a month charged by market-leading rival XM Satellite Radio [XMSR] of Washington, D.C.
For more on what how the Stern and Sirius, read the Oct. 11 issue of Satellite News. For more information on subscribing to Access Intelligence’s satellite industry publications, please visit http://www.satellitetoday.com.