(A Brief) Howard Stern Show Bio

from Forbes.com

Sirius May Hike Stern Ad Rates

Sirius Satellite Radio must have some set of receivers. After all, it's dwarfed by XM Satellite Radio--at last count, Sirius had 1.8 million subscribers, compared with XM's 4.4 million--but the smaller of the industry's leaders often seems brasher and scrappier. Led by radio-savvy Chief Executive Mel Karmazin, Sirius is reportedly asking beyond top dollar for the fecund ad space that'll blossom upon Howard Stern's vaunted arrival in January. Stern is currently keeping the airwaves raunchy at Infinity Broadcasting, a unit of Karmazin's old Viacom stamping grounds.
But according to an online report by Advertising Age, Sirius sales execs are already pumping up the prices on future ad slots, for when the salty raconteur switches to the orbital broadcaster. The report says one buyer claimed he was pitched a $20,000 price for a live read on Stern's upcoming program. That is said to be near the same price for advertising on his current show, which has some 7 million weekly listeners. Sirius projects that it will have 3 million subscribers by year's end.

from fmqb.com

Karmazin Beefs Up Sales Staff, Says Stern Not Showing Up Early

At yesterday's Sirius second quarter earnings conference call, CEO Mel Karmazin revealed that the company has built up its ad department, and also had a few more words about the omnipresent Howard Stern. Discussing the company's sales expansion, it was announced that "seven to eight people" have joined its sales staff, concentrated in Chicago, New York City and Los Angeles. It will be keeping its music channels ad-free, but the satcaster expects high demand for spots on their news, talk and sports channels. “I can tell you right now we are seeing very strong demand for NFL-related content today,” Karmazin said. “There is great anticipation for Martha Stewart for a lot of advertisers in their inability to reach women on traditional radio.”

With the recent hoopla surrounding Howard Stern's status, Karmazin said that we still shouldn't expect to hear the King Of All Media on Sirius before January 1. "He is under contract to Infinity through the end of this year," said Karmazin, adding, "We're excited to have Howard start with us as quickly as he can once he's free of his contract. If that's at the end of the year, we'll start on January 1. If its sooner, we'll start sooner. But, we've had no conversation with him about coming early. We do not want to, in any way, shape or form, interfere with Viacom's relationship with their performer." He also said that Sirius will further step up their marketing campaign as Stern's start date gets closer. "There will be nobody in the United States who will not know that Howard Stern will be on Sirius," he said. "The marketing will be very aggressive."

Responding to yesterday's story that Infinity and Emmis may be negotiating to put Mancow on in Stern's place in the not-too-distant future, Stern said on-air, "Get me outta here! You should want to get me out of here. The more I'm here it's a reminder for people to buy satellite. Get me out today!" He jokingly added, "I'm a cancer to terrestrial radio" but repeated that "I plan to report to duty on satellite radio January 1."

When Will The Howard Stern Show End? The end of 2005 and Howard Stern's contract with Infinity Broadcasting are rapidly approaching. Rumors suggest Infinity will pull the plug on the Stern Show prior to the Fall Arbitron ratings period, which starts September 23. When do you think The King Of All Media will end his run on terrestrial radio?

from fmqb.com

Howard Stern Takes Television Show To In Demand

Howard Stern revealed on his show this morning that he has signed a deal with In Demand Networks for an On Demand subscription video-on-demand (SVOD) version of his show. Stern loyalists will have unlimited access to more than 20 hours a month of material culled from his past radio shows and his new Howard Stern Sirius Radio Show when it debuts. The selection of shows will be updated every week. Variety reports it is a three-year deal.

"We are taking everything completely underground," said Stern on his program this morning while making the announcement. Discussing some of the reasoning behind his second move to a subscription service, Stern railed on one of his favorite targets, the FCC, claiming the commission's crackdown on indecent material has not only driven him from terrestrial radio, but also from cable television. He intimated that E! executives were being pressured to censor his program beyond saucy language and pixilated nudity, even though it was on cable television and the supposed safe harbor hour of 11 p.m. "There's no other place for me," claimed Stern. "I can't bring you the E! show the way it used to be."

A message on the In Demand Web site, already complete with a Howard Stern section, declares: "Howard Stern has found a new home on television. Soon you can enjoy his shows in a whole new way." The site also says, "Howard Stern On Demand is a subscription video on demand television offering that will be available from multiple television service providers. It will also be the only way you can watch Howard Stern's radio shows on television, with the convenience of On Demand viewing."

While Video On Demand incurs an additional cost, Stern fans will have unlimited access to video highlights of Howard Stern's past and present radio shows. The monthly subscription cost will be announced when the package is available to order.

Parents concerned about their children watching Stern's television program should take notice that In Demand Networks is already providing information that they can activate the parental control feature to limit access to Stern's programming.

Stern had hoped to make the announcement on Monday (8/1), but held off until today when everything was finalized. There is no word on which E! staff members will be making the jump.

In Demand is available nationwide on cable television through approximately 1,400 affiliated systems and has already inked deals wirh Comcast, Time Warner Cable and Cox to carry Stern's programming. According to TV Barn, roughly 40 to 50 percent of cable customers have access, which adds up to around 50 million households that will have access to Stern's show.

from Variety.com
August 3, 2005

Stern turns to In Demand - Sirius biz: Shockjock inks a sat deal

NEW YORK -- Howard Stern has signed a three-year deal with In Demand to carry the TV version of his daily show on Sirius satellite radio. Auds will get the raunchy Stern instead of the sanitized version, which is still available on E! even though his contract wasn't renewed. Basic cablercabler is still running reruns.

In Demand, the dominant U.S. distributor of pay-per-view movies and events, will offer the Stern show to cable networks via subscription video-on-demand. SVOD is a platform that requires people to subscribe to a digital cable box and in this case pay $10 extra each month to get the standalone channel that carries Stern. The parties declined to reveal the amount of money In Demand will pay Stern for exclusive TV rights to his show, but the deal is complicated because it includes an unspecified number of pay-per-view specials produced and hosted by Stern. His New Year's Eve PPVPPV event in December 1993 racked up 35 million buys to become one of the biggest nonsports revenue generators in the history of pay-per-view.

In Demand will distribute these one-shots for a PPV fee separate from the radio show subscription, although customers may get the specials at no extra cost if they buy a one-year subscription to the SVOD service. Rob Jacobson, president-CEO of In Demand Networks, said the company's plan -- beginning later this year -- is to tape each day's four-hour radio show featuring Stern and his cast of regulars and edit it down to between 60 and 90 minutes for delivery to SVOD customers the next day. "We'll have a lot of flexibility and latitude in figuring out the exact length of each show," Jacobson said. "Our goal is to create a tightly edited, fast-moving show."

One reason Stern chose In Demand as the TV partner, said his agent-manager Don BuchwaldDon Buchwald, is that Stern won't face "the censorship and government interference that continue on his terrestrial radio show" distributed by Infinity Broadcasting. That censorship, which has cost Stern $1.75 million in government fines, drove a wedge between Infinity and the shockjock. Instead of renewing his contract with Infinity, which expires at the end of the year, Stern jumped to Sirius, which agreed to pony up $100 million per year for five years, beginning in January.

E! Entertainment TV, which carries a half-hour nightly version of his Infinity show, has to be much more discreet because it takes advertising. "E!" covers any nudity with pixilation; foul language disappears through electronically lowered volume. Last September, Stern cut a deal with Internet VODVOD company Movielink to offer uncensored clips on Stern's Web site from the E! cablecast featuring the soft-core nudity that E! eliminated. That deal expires with the end of the E! contract.

Jacobson said as many as 20 million In Demand subscribers will be able to buy Stern on SVOD when it kicks off in January. If only a small percentage of that number ponies up for the show, In Demand and Stern will be rolling in dough. "Howard will be the first stand-alone personality in SVOD," Jacobson said, adding he's confident the shockjock's fans will seek him out and swell the number of SVOD subscribers. Buchwald said Stern was attracted to In Demand because "it's a company with significant substance. It's owned by three major cable operators: Comcast, Time Warner and Cox." All three of those operators are carving out SVOD dial positions for the Stern show, and In Demand has begun negotiating with other cable operators. For Stern junkies, Jacobson said the SVOD window will keep previous Stern shows on the platform for a couple of weeks for call-up at the flick of a button on the remote.

from TVBarn.com

On Demand to carry Howard Stern

TV Barn’s got the scoop on Howie’s SVOD plans.

The rumors that Howard Stern will bring the TV version of his syndicated radio show to pay TV — mirroring his decision to jump from broadcast radio to Sirius satellite radio in 2006 — are true.

Here’s what we know so far, according to an excellent source.

Next week Stern will announce he has entered into an agreement with In Demand Networks, which currently supplies its On Demand SVOD (subscription video-on-demand) services to millions through their digital cable boxes. On Demand will have exclusive rights to Stern’s Sirius show under a multi-year deal. It’ll also have the rights to tap into everything Stern owns, which presumably includes tapes of his old E! and syndicated TV shows.

E! announced recently it was discontinuing “The Howard Stern Show,” and a deal with Spike TV fizzled. TelevisionWeek had the first report on Stern’s desire to move to SVOD.

Frankly, going pay all the way makes loads more sense. After all, Stern is going to satellite radio, where he will be able to say and do just about anything. It was a struggle enough for E! for edit his existing show down to an acceptable form; imagine what will happen when the censor goes away. Painful as it may be for him to lose both of his high-profile platforms, he’s better off in the long haul making a clean break now.

And it means Howard will have a second revenue stream to go with his Sirius income. Plus, consider this: Maybe he will have 1 or 2 million listeners when he signs onto Sirius. But on the TV side he will have as many potential viewers of his program as there are digital cable boxes carrying On Demand. Somewhere between 40 to 50 percent of cable customers have them now. That’s a base of at least 50 million households. Even if only a small fraction buy, at least they won’t need a Sirius receiver to get their Howie fix.

And of course, they’ll get something satellite radio listeners won’t: unpixellated boobs.

from fmqb.com
July 25, 2005

Listeners Show Loyalty To Howard Stern As He Explores Video On Demand

However, 23 percent say they intend to follow Stern to Sirius, with another 31 percent undecided about subscribing. Respondents also said that the amount of commercials heard per hour would impact their decision, with less commercials making them more likely to sign up.

"It's clear by this study and it is no surprise that Stern's fans do not intend to stick around once he leaves his current station address," said Bridge Ratings President Dave Van Dyke. He added, "We also wanted to learn what the impact would be of commercial content in Stern's show on a pay radio service. Twelve percent of the "undecided" said it was "very likely" that they would subscribe to the satellite service if there were no commercials, while 100 percent of those who already intend to subscribe would do so with zero commercials per hour". The survey included 2650 Stern listeners in seven major markets.

In other Stern news, TVWeek reports that he is in talks to move the TV version of his show to an video-on-demand (VOD) service. Their sources say that he is not currently negotiating with Spike TV, as previously suggested, and is instead looking to go to the subscription route with VOD. It would also allow Stern's show to air uncensored. One source told TVWeek, "He's cutting out the middle man. It makes the most sense for him financially. He knows his audience supports him and the VOD scenario will maximize that."

	Bridge Ratings Industry Study : Howard Stern Conversions - Intent
For Immediate Release: Monday July 25, 2005 Stern Listeners 18+ Intent Beyond January 1, 2006 Bridge Ratings is currently measuring radio listening and audience behavior in several markets where Howard Stern is heard. In response to queries regarding the potential audience Howard will take with him to the Sirius Satellite service in January of 2006, Bridge Ratings has been surveying Stern listeners in these markets* to determine the interest in subscribing to the service due to Howard's migration. In June, 2005, we began asking additional behavioral questions. These additional questions were asked to gather further data related to current Stern listeners and how their listening will change once Stern makes the switch to Sirius Satellite radio. How will Stern's departure impact his current terrestrial stations? For the purposes of this survey, Bridge Ratings interviewed listeners who voted Howard as their "Favorite" morning show personality during our weekly listener surveys of these markets. The following results represent Howard Stern listeners Persons 18+ . Listeners were asked if they: a. Were aware that Howard Stern would be moving his show to satellite radio in January 2006; b. Would be subscribing to Sirius in order to continue to hear the "Howard Stern Show". c. Were aware of the costs associated with subscribing to Sirius. d. Would subscribe once they were aware of the cost implications. At the conclusion of part "D" above, we are now asking listeners what their intent is once Stern leaves his current station. The following was asked next: e. "Of the following choices, what is your intent once Howard Stern leaves his current radio station?" 1. I'll keep listening to the station Howard's on now. 2. I only listen to the station because if Howard's and will seek out other stations. I have not yet decided to subscribe to Sirius Satellite Radio. 3. I intend to follow Howard to Sirius Satellite radio. 4. I'm not sure. A) Intent " Of the following choices, what is your intent once Howard Stern leaves his station for satellite radio?" Demo 18+ % Will Stay with Stern Station 5 Listen Only For Howard, will try other stations. 41 Subscribing to Sirius 23 Undecided 31   Of those who indicated they would be subscribing to Sirius in order to continue to hear the Howard Stern Show, along with the "undecideds", we also asked "How likely are you to subscribe to Sirius Satellite radio if you knew the satellite version of the Howard Stern Show included 0 commercials an hour, 4 commercials an hour, 8 commercials an hour or 16 commercials an hour? Commercial Content Impact on Stern Subscriptions 0 Commercials per hour Demo: 18+ Very likely Somewhat likely Not Very Likely Not Likely Intend to Subscribe to Sirius 100% na na na Undecided 12% 26% 40% 22%   Commercial Content Impact on Stern Subscriptions 4 Commercials per hour Demo: 18+ Very likely Somewhat likely Not Very Likely Not Likely Intend to Subscribe to Sirius 91% 9% na na Undecided 10% 25% 42% 23%   Commercial Content Impact on Stern Subscriptions 8 Commercials per hour Demo: 18+ Very likely Somewhat likely Not Very Likely Not Likely Intend to Subscribe to Sirius 71% 12% 15% 2% Undecided 8% 18% 44% 30%   Commercial Content Impact on Stern Subscriptions 16 Commercials per hour Demo: 18+ Very likely Somewhat likely Not Very Likely Not Likely Intend to Subscribe to Sirius 39% 22% 29% 10% Undecided 4% 9% 50% 37%   And finally, we asked the Undecideds what was the most important consideration for them NOT to subscribe to Sirius for the Howard Stern Show? "Of the following, which is the most important consideration for you to NOT subscribe to Howard Stern's show on Sirius Satellite radio?" Demo: 18+ Cost Show Content Don't See Need Number of Commercials Other Undecideds 32% 12% 30% 19% 7% Bridge Ratings continues to monitor the progress of Stern listeners and will provide weekly trending and quarterly updates through 2005. *Howard Stern markets surveyed: Los Angeles, San Diego, Phoenix, Boston, Seattle, Portland, Las Vegas. 2650 listeners 18+.

from PhillyBurbs.com
July 15, 2005

Howard Stern set to succeed on Sirius

1. That the King of All Media will depart from his long held FM radio gig on this September, a full four months before his contract expires at the end of 2005.
2. If you believe semi-legit reporter Chaunce Hayden, David Lee Roth is slated to be one of Stern’s replacements.

Combine the unsubstantiated gossip with news headlines such as “Howard Stern: the end is near?” and “E! Ending Howard Stern Show,” one could mistakenly infer that the King of All Media’s reign is about to come to a screeching halt.

All this as Stern is about to embark on this biggest and boldest project yet, moving to Sirius satellite radio.

Stern is putting his reputation and his career on the line by migrating his hugely popular radio show to a largely unproven medium. But in the past, such bold moves have paid off in huge dividends for the entertainer and transformed the stale and boring format of radio into something radically different and exciting.

Not only did Stern pioneer the way radio sounded and how we listened, he was also the catalyst who single-handedly resuscitated radio, enabling it to realize just what a financially lucrative medium it could be.

And Stern’s cutting edge sensibilities allowed him to pioneer once again, when he began to syndicate his WXRK-FM show from New York to key markets in the country – something that lasted for nearly 20 years.

But as Stern’s show progressed and grew, terrestrial radio stopped growing with him. Companies such as Clear Channel who had previously aired his programming suddenly dropped him due to pressures from the religious right on a crusade to restore decency, whatever that is, to radio and TV programming.

Stern’s sense of humor is certainly unique and admittedly offbeat. But Sirius is banking on the hopes that because of the home they are building for Stern, his listeners will come. And many of them are already there.

“I’ve been a Sirius subscriber since last November and I love the service, even though Howard isn’t there yet,” says Mark Mercer, who runs the Stern fan Web Site, marksfriggin.com. “Once Howard makes his move, I’ll have no reason to listen to terrestrial radio anymore,” says Mercer.

With commercial-free music stations, extensive coverage of NFL, NBA and other major sporting events and a modest, but growing lineup of international programming, Sirius already offers listeners an impressive range of choices in exchange for the $12.95 monthly fee to subscribe to its service.

Skeptics say that the listeners won’t want to pay for something they previously received for free. And it’s certainly true; a number of people won’t switch to satellite radio until it is fully proven and stable.

But thinking back just 20 years ago, the concept of paying to bring television into one’s home was inconceivable. Now with technology such as DVR and HDTV, subscribers can easily cough up $60 or more for a month’s worth of TV. And chances are you’re probably one of them.

The same is bound to happen with satellite radio. The technology allows listeners access to diverse programming that is without compare on regular radio. And in 20 years we collectively won’t even stop to think back and wonder what we ever did before satellite radio.

Just as cable TV allowed HBO have a forum to create progressive programming, satellite radio will allow Stern to thrive unfettered, something terrestrial radio hasn’t permitted him to do for several years now.

As for Stern’s replacement, it’s still anyone’s guess. But if the best that executives can come up with is, in fact, David Lee Roth, Stern’s absence will leave a gaping hole on the dial.

“There are rumors that David Lee Roth is going to be taking over for him in the New York City market this September but there hasn’t been a confirmation on that yet,” says Mercer.

“I can’t imagine that Roth would be able to hold an audience for more than five minutes with his crazy rambling thoughts. Roth has been a guest on Howard’s show in the past and, in my opinion, he’s only entertaining for a short time.”

Mercer adds, “It doesn’t really matter to me though, I’ll be tuned into Howard Stern and Sirius radio for the next five years.”

With Stern’s success on Sirius almost a certainty, it’s only a matter of time before we all abandon radio the way we have known it and listen to satellite radio at home, in our cars and on our computer desktops during the work day.

You can e-mail me your thoughts at dmcgurgan@phillyburbs.com or leave a comment below [on their blog].
Dave McGurgan is the entertainment editor for phillyBurbs.com.

from CNN.com

Howard Stern: the end is near?

As the clock ticks down on the Stern's move to satellite radio, the rumors are swirling.

NEW YORK (CNN/Money) - Wherever Howard Stern is, rumors are never far behind.

This time the radio industry is abuzz with reports that the bawdy talk show host will leave AM-FM radio by Labor Day, a full four months before his contract at Infinity Broadcasting is due to expire.

The ventured reason: September is a crucial ratings period for radio advertising and Infinity won't be able to sell ads down the road if those ratings are based on a personality who is no longer on the company's airwaves.

But that's not all of the Stern buzz these days.

To replace Stern, Infinity has reportedly signed rocker David Lee Roth to replace Stern, who announced last year a five-year, $500 million deal to move his show to subscription-based Sirius Satellite Radio in January. Roth,the solo artist formerly the lead singer of Van Halen, would substitute for Stern at Infinity stations in New York and Los Angeles.

That Roth would fill Stern's shoes in two Infinity markets supports another speculation: that Infinity, a unit of media giant Viacom, is not looking for one magic bullet to replace Stern but is instead planning to tap multiple personalities for different regions around the country.

Michael Harrison, the publisher of radio industry magazine Talkers, confirmed the whispering but noted that Stern is a master at feeding the rumor mill. Speculation that he would jump to satellite radio had long circulated before he cut his deal with Sirius last year.

Other longstanding rumors haven't panned out -- not yet anyway. "For years we never knew if he was actually on the verge of getting fired," said Harrison.

Infinity spokeswoman Karen Mateo has confirmed that the company is talking to many potential replacements, but has said that no announcement about its Stern succession plan is imminent.

Happy to see Stern go?

Stern's show has been a huge source of revenues for Infinity -- attracting, some analysts say, $175 million a year in advertising. Of that, Stern and his sidekicks pocket at least $30 million, according to these estimates.

If Stern is off the air before his contract expires, presumably Infinity would have to pay him for any remaining time left under the contract. There's been talk as well that Sirius would pay Infinity to release Stern from his contract so it could begin broadcasting "The Howard Stern Show" sooner than January.

Disputes over Stern contracts are not unheard of. When Clear Channel Communications, the country's No. 1 radio broadcaster, pulled Stern from its stations last year, it stopped paying licensing fees to Infinity. The fracas ended up in court.

Stern, for one, has made it clear that he is ready to go whenever his bosses give the order.

In announcing his defection last October, Stern said he was fed up battling government watchdogs over claims his on-air commentary violates rules barring obscene and indecent programming on public airwaves. The broad crackdown that followed the 2004 Super Bowl broadcast, in which singer Janet Jackson exposed her breast during the live half time show, was the catalyst for Stern.

But it's clear, too, that relations between Stern and Infinity executives were strained and got noticeably worse after Stern quit. One friction point: Stern's frequent trumpeting of satellite radio over AM-FM radio after his announced move to Sirius.

The fact that the Stern scuttlebutt is picking up makes sense, said Harrison.

"There's obviously a tremendous amount of tension between him and Infinity and it's getting closer and closer to the witching hour where he's going over to Sirius Satellite Radio," said Harrison. "So many are watching, from stock watchers to radio programming watchers. It's ripe for rumors."

For Infinity, Stern's departure comes at an especially challenging time. AM-FM radio has been among the slowest-growing media sectors as advertising dollars move to the Internet, cable television and other newer forms of entertainment.

To compete, radio broadcasters like Infinity and Clear Channel Communications are rejigging programming, experimenting with shorter commercials, and embracing new technologies like high-definition radio and Internet downloads.

Other broadcasters, like Walt Disney, are reportedly looking to sell their radio assets.

Some Wall Street analysts have recently lowered their growth estimates, already in the low-single digits, for radio advertising.

Just how much is Howard Stern worth to Infinity? To find out, click here.

Not all satellite radio subscribers are thrilled with Stern's looming arrival. Click here for more.

from fmqb.com

Rumors Fly About Diamond Dave Taking Over For Howard Stern

David Lee Roth to replace Howard Stern? FMQB expects these type of rumors to keep flying as The King Of All Media winds down his run on terrestrial radio. The Roth rumor, which has legs, is the latest and was started by a report from Steppin' Out Magazine's Chaunce Hayden. [Ed.-always be careful of your source!]

In an online post, Hayden wrote: "Howard Stern's successor has been found! It's none other than 80s rocker David Lee Roth. Infinity Broadcasting isn't commenting and Roth has been asked to keep mum until it's officially announced. But an inside source at Infinity has confirmed the signing. Roth auditioned for the job both in L.A. and Boston and got very positive feed back from listeners. Roth has been running ads in trade publications looking for a producer "For a HUGE radio show." Roth is said to be taking over for Stern in early September, 3 months before the shock jocks contract is due to expire."

When reached last night (7/6) about this report, Infinity VP of Communications Karen Mateo told FMQB the company was "looking at a number of personalities to replace Howard" and added there was not an announcement pending. A call by FMQB to Roth's management has gone unreturned.

The Roth rumor could fit though. Diamond Dave has done a couple stints at Infinity outlets WZLX/Boston and KLSX/Los Angeles. If the rumor comes to fruition, it remains to be seen what stations Roth would pick up, as Infinity chairman and CEO Joel Hollander has stated that numerous personalities would likely replace Stern across his current affiliates.

Stay tuned to FMQB.com as The Howard Stern Show winds down and his replacements are named in due time.

from The Wall Street Journal

Jockeying begins to replace Stern

With just over six months to go before Howard Stern moves to subscription-only satellite radio, station manager Daniel Cook has been struggling to find a replacement for Stern's morning show, which has been broadcast by KBZZ in Reno, Nev., for more than 10 years.

"We've been pulling our hair out, trying to come up with a game plan," says Cook, recounting conferences attended, shows tuned into, and pitches heard -- all aimed at finding a new host. "There are some possibilities here, but I just don't have anything."

Cook shares his dilemma with the 37 other stations around the country that air Stern's show. Finding a successor who won't leave advertisers and listeners flipping the dial is a tall order, and few stations are confident they have found the solution. Last year, six Clear Channel Communications Inc. stations had to drop the legendary shock jock's show to comply with the company's anti-indecency policy; most fell sharply in Arbitron Inc.'s station rankings.

But waiting in the wings is a band of lesser-known talk radio hosts eager to fill Stern's shoes and prove that his departure from regular radio isn't disastrous for stations. The leading candidates come with a variety of credentials, including skill bantering about 1980s hairdos, stunts involving bodily fluids and off-color on-air chitchat that has prompted fines by the Federal Communications Commission.

Many people associate Stern primarily with strippers, lewd language and trouble with the FCC, and those are the first traits aspiring successors imitate. But some industry observers say Stern's success is rooted more in his ability to talk with intelligence to anybody -- from rock stars to waitresses -- and cover fresh ground with even the most jaded celebrity.

"He's edgy, he's got charisma, and he's a fearless interviewer," says Michael Harrison, the editor of trade publication Talkers. The mostly alternative rock stations that run Stern's morning show rely on it to set up the cutting-edge atmosphere they hope will draw in listeners all day long.

His imminent departure also risks leaving many radio stations without the steady revenue Stern provides. In a top five market, Stern could bring in as much as $10 million in extra local advertising revenue. That more than makes up for the base fee of $2 million to $3 million a large-market station would have to pay Stern to air him. While other shows are less expensive, they don't bring in the same advertising money.

On the flip side, his departure represents an unusual opportunity for radio talent that aspires to the national status Stern commands today. Yet few people believe any one person could instantly fill his shoes.

"Whoever you put in there, even if the personality is great, he's not Howard Stern," says Bob Ausfeld, general manager of WQBK in Albany, N.Y., who is among those scrambling for a replacement for Stern's show.

Joel Hollander, chief executive of Infinity, says his chain will not use a single replacement across the 27 Infinity stations airing his program. Infinity already is seeking to distance itself from Stern.

Many stations are considering enlisting an existing syndicated show that does well with Stern's core audience, 18- to 54-year-old men. Top contenders in this category include Chicago-based Erich "Mancow" Muller; Tom Griswold and Bob Kevoian of the Indianapolis-based "Bob and Tom Show"; and Shane French of Cleveland-based "Rover's Morning Glory."

Muller has kicked into high gear. In recent months, he hired a new publicist and syndicator, Central Point, Ore.-based Talk Radio Network FM Inc. Now, his show airs in 18 cities, including the GBP 2 radio market, Los Angeles. That's double the number about a year ago.

"It's going to be the biggest morning show in America within 18 months," he brags.

Muller is perhaps best known for a previous gig in San Francisco where one of his sidekicks got an on-air haircut in the middle of the Bay Bridge, tying up traffic during rush hour. Muller is also well- known at the FCC, which has fined him for indecency on five separate occasions. But since being fined $7,000 in 2002 for airing a song called "Smell My Finger," Muller has cleaned up his act considerably. "I had strippers on my show, I had porno stars on my show," he recalls, saying the novelty has worn off. "They really have nothing to say."

The Bob and Tom Show, while often bawdy, also steers clear of any material that could land them in trouble in Washington. Recent shows have spoofed grunting during the Wimbledon tennis tournament. The duo often discusses obscure cultural trends such as the mullet, a hairdo popular during the 1980s, and men's pants that hang too low in the back, revealing too much flesh.

Griswold and Kevoian's show is broadcast in 150 different markets around the country. But where Stern shines in giant metropolises like New York and Los Angeles, Griswold and Kevoian do well in midsize and smaller cities.

Because its markets are smaller, the Bob and Tom Show falls far short of the estimated 8.3 million weekly listeners Stern has nationally, according to Talkers.

French's talent is less proven, with his show airing in just three markets: Cleveland, Columbus, Ohio, and Madison, Wis. It just started in the last two, but French has held his own against Stern's show in Cleveland. At 29, French is younger than any of the other contenders, potentially making him a longer-term bet.

from the Chicago Tribune

Infinity mulls stripping Stern of slot early

Howard Stern's instincts are dead on, as usual.

Stern, who's headed to Sirius Satellite Radio after his Infinity Broadcasting contract expires at year's end, told his national audience the other day that Infinity might take him off the air early.

"Technically, we're working for the summer, and then we're done here. That's what I heard," he said.

He didn't know it, but less than 24 hours earlier, Infinity Chairman Joel Hollander told this column that such a move could happen, though he stopped short of saying it would.

"Anything's possible," Hollander said. "Right now, we assume he's staying till the end of the year. That's the assumption. Is it possible? Anything's possible. That's as honest as I can be.

"At some time I'm going to have to take my medicine [and do without Stern]. I understand that. Is it going to hurt? It's going to hurt a little bit. But at the end of the day, he's still less than 5 percent of Infinity's revenues. So it's not the earthquake some people think it is. There's going to be a tomorrow."

Though an early dismissal of Stern could cost Infinity revenue in the final quarter of this year, Stern thinks the Viacom-owned outfit might have reason to want him gone before Arbitron's fall ratings period starts.

The results of the fall book help establish ad prices for much of 2006, when Stern and company will be grilling celebs and throwing luncheon meat at strippers for Sirius, not Infinity.

"The theory is that if we're here for the ratings period in the fall, they can't sell advertising because [ad buyers] are going to go, `Those were Howard's ratings, and we're not going to pay,'" Stern said on-air Wednesday, according to the New York Post. "So they figured [they'd] get the new morning show in here, and even if the ratings go down, at least there's something to sell."

Infinity has yet to announce how it will replace Stern on its stations, such as Chicago's WCKG-FM 105.9. But Hollander said it would be "foolish" to drop a single personality into Stern's slot nationwide, and that the company has "the semblance of a plan" for succession it's not ready to share.

"We're looking at this as a great opportunity to develop new talent, probably regionalize some of it," Hollander said. "We're looking to hire anywhere from five to six, seven people to fill the 27 slots that we have for Howard. ... Some of it is going to work, and some of it we will tweak as we go along."

Maybe sooner than later.

from BillboardRadioMonitor

Stern Out By Fall? Not Likely

Howard is gunning for his exit again.

Syndicated morning man Howard Stern claimed on his morning show June 29 that he has heard that Infinity Broadcasting plans to dump him at the end of the summer.

“The theory is that if we’re here for the ratings period in the fall, they can’t sell advertising because media buyers are going to go, ‘Those were Howard’s ratings and we’re not going to pay.’ So they figured they’d get the new morning show in here and even if the ratings go down, at least there’s something to sell.”

Stern is contracted to remain with Infinity until the end of the year, when he will then begin working off his $100 million contract with Sirius Satellite Radio.

But Rich Russo, director of broadcast for media buyer JL Media, says that Howard is talking a good game, but there are no facts to back his accusation.

“The buying mentality is that when Howard stops being on the air, at that point, everybody that advertises is going to get a call from their salesperson, saying, ‘We’ll give you five no-charges for every (spot) you pay for. Once he’s off the radio, you re-rate that buy.”

Russo adds that Stern is playing games with Infinity by persistently complaining to listeners that Infinity wants to get rid of him—without informing listeners that if he is fired before his contract expires, Infinity must offer a $20 million buyout.

“I think it would be great if Joel Hollander came on the air every day during every break and let listeners know what’s really going on,” he says. “If Howard wants off the air, then why doesn’t he tell Infinity to waive his contract? Because he’s savvy enough to know that his listeners know nothing about this.”

Russo adds, “Howard is brilliant, he’s the greatest guy ever on radio, but he’s playing a weird game of chicken.”

from: bridgeratings.com

	Bridge Ratings Industry Essay : Howard Stern Conversions - Adult Trending
For Immediate Release: Updated Saturday June 25, 2005 Stern Listeners 18+ Bridge Ratings is currently measuring radio listening and audience behavior in several markets where Howard Stern is heard. In response to queries regarding the potential audience Howard will take with him to the Sirius Satellite service in January of 2006, Bridge Ratings has been surveying Stern listeners in these markets* to determine the interest in subscribing to the service due to Howard's migration. For the purposes of this survey, Bridge Ratings interviewed listeners who voted Howard as their "Favorite" morning show personality during our weekly listener surveys of these markets for the period November, 2004 through the current week. These results represent 18+ men and women Howard Stern listeners. We have also begun trending this information weekly. (See below) Listeners were asked if they: A. Were aware that Howard Stern would be moving his show to satellite radio in January 2006; B. Would be subscribing to Sirius in order to continue to hear the "Howard Stern Show". C. Were aware of the costs associated with subscribing to Sirius. D. Would subscribe once they were aware of the cost implications. A) Awareness " Are you aware that the Howard Stern Show will be moving to satellite radio in January 2006?" Trending: March, 2005 Demo Yes No Don't Know Total 18+ 80% 19% 1% Trending: April, 2005 Total 18+ 85% 13% 2% Trending: May, 2005 Total 18+ 89% 8% 3% Trending: June, 2005 Total 18+ 91% 6% 3%   B ) Subscribing - Pre-Costs "Will you be subscribing to Sirius satellite radio in order to continue to hear the Howard Stern Show?" Trending: March, 2005 Demo Yes No Undecided Total 18+ 22% 34% 44% Trending: April, 2005 Total 18+ 26% 31% 43% Trending: May, 2005 Total 18+ 29% 36% 35% Trending: June, 2005 Total 18+ 28% 38% 34%   C) Aware of Costs? "Are you aware of the costs associated with subscribing to Sirius satellite radio in order for you to continue to hear the Howard Stern Show?" Trending: March, 2005 Demo Yes No Unsure Total 18+ 37% 54% 9% Trending: April, 2005 Total 18+ 40% 49% 11% Trending: May, 2005 Total 18+ 43% 46% 11% Trending: June, 2005 Total 18+ 46% 46% 8%   D) Subscribing - Aware of Costs "Now that you are aware of the costs associated with subscribing to Sirius satellite radio, will you subscribe in order to hear the Howard Stern Show after January 2006?" Trending: March, 2005 Demo Yes No Undecided Total 18+ 11% 34% 55% Trending: April, 2005 Total 18+ 15% 36% 49% Trending: May, 2005 Total 18+ 19% 42% 39% Trending: June, 2005 Total 18+ 20% 44% 36%   Bridge Ratings continues to monitor the progress of Stern listeners and will provide weekly trending and quarterly updates through 2005. *Howard Stern markets surveyed: Los Angeles, San Diego, Phoenix, Boston, Detroit. 1671 listeners 18+.

from Fool.com

As the Stern Turns

If Howard Stern really is the King of All Media, let's just hope that his castle comes on wheels. The rowdy celebrity, already in the process of migrating his popular radio show from terrestrial radio to the more liberating environs of satellite radio come January, is now also switching television networks.

Where his TV show lands remains to be seen, but the final new show on E! will air next month. Comcast, which owns a majority stake in E!, stands to suffer from the move, since Stern's televised show was the network's top draw. E! is likely to air reruns for a long time, though, and the cable channel has more than 2,000 Stern shows in its library. However, there is no way that it will be able to maintain its former stellar ratings while it airs dated content.

Irony may make a surprise guest appearance here. The most logical new resting place for Stern's television show would be the male-targeted Spike TV. So where's the irony? Well, Spike is owned by Viacom, the same company that will be losing Stern on the radio when he leaves for Sirius. As a young network, Spike TV could really use Stern's presence.

No matter where he winds up on the small screen, it's unlikely to have an impact on his move to satellite radio, even though the outcome of that move remains the bigger mystery. The morning program's racy content has led to its being pulled in many radio markets, and we still don't know how many displaced fans will be running to buy Sirius satellite receivers later this year to make sure they can once again placate their Stern craving.

It won't be the 10 million-plus listeners whom he has been drawing through free, conventional radio. Some can't pay -- or won't pay -- for satellite radio. It's a shame, because like satellite television, once you taste the expanded content, there is no going back to the rabbit-ear antennas of traditional broadcast TV. Yet many will make the move alongside Stern. Many more who don't have radio access to Stern now are likely to check him out.

With a market cap of $8 billion, Sirius is going to need to prove me right if its stock wants to keep heading higher. That first quarter of 2006 is going to be telling. Will Sirius pull in more new subscribers then, and in the upcoming holiday quarter, than rival XM will? It could happen. If you asked Stern, I'm guessing he'd say there's no way it could not happen.

Tune into some of these other revved-up yet related links:

* If you think Stern is a rule breaker, check out our Rule Breakers newsletter service.
* Learn more about what Clear Channel is doing with podcasting to stay relevant.
* Signing Stern, Mel Karmazin, and the NFL has given Sirius a real chance to succeed.

from RadioAndRecords.com
June 16, 2005

Infinity Chief Predicts New Round Of Consolidation

According to a MarketWatch report, Hollander noted that a new round of consolidation could present Infinity with a chance to bolster its position in the top 20 markets. He also says Viacom co-COO Les Moonves, who oversees Infinity and will oversee CBS Corp. following its spinoff from Viacom, is supportive of the idea. "He's a very big believer in where we are going," Hollander said. "We'll be a bigger fish in a smaller pond." While Hollander expects industry revenue growth to slow over the next 12-24 months, he believes the industry could reach 4%-5% annual growth within the next few years. He also reiterated earlier claims that Infinity has no plans to release WXRK/New York-based syndicated morning host Howard Stern from his contract with the company for an early start on his January 2006 jump to Sirius. But Hollander quipped that Sirius CEO and former Viacom COO Mel Karmazin could "come over with a check to buy out his contract."

from CNN.com

Hyundai customers say 'no' to Stern?

Report: Automaker's customers don't want Sirius because they don't want to listen to the shock jock.

NEW YORK (CNN/Money) - A surprising number of Hyundai customers said they didn't want Sirius Satellite Radio installed in their vehicles because they objected to Howard Stern, according to an auto news Web site.

The so-called "shock jock" will broadcast on Sirius (up $0.08 to $5.33, Research) Monday through Friday from 6 a.m. to 10 a.m. beginning in January 2006, said Inside Line, an online news source that is part of Edmunds.com. Edmunds.com is a partner in CNN.com's automotive news and information channels.

Hyundai recently surveyed 300 to 400 customers as it was deciding whether to choose XM (down $0.10 to $28.14, Research) or Sirius Satellite Radio in as an option for its vehicles. Hyundai ultimately decided to go with XM.

The automaker will roll out a fall program that offers 90 days of free satellite radio programming with its new models, starting with the Santa Fe SUV, and the Sonata and Azera sedans, according to Edmunds.

John Krafcik, Hyundai vice president of product development and strategic planning, told Inside Line that executives were stunned by the number of "unprompted write-ins" on the survey that said customers were "not comfortable with programming from Stern."

Other automakers, like DaimlerChrysler (up $0.67 to $40.08, Research), still install the Sirius system.

from TheStreet.com
May 3, 2005

Sirius Satellite Isn't Worth Betting Against

Editor's note: This is a bonus story from James Cramer, whose commentary usually appears only on RealMoney. We're offering it today to TheStreet.com readers. This column was originally published on RealMoney at 9:54 a.m. EDT Tuesday. To read Jim's commentary every day, please click here for information about a free trial to RealMoney.

Everybody's got an angle on everything. Oh sure, Sirius CEO Mel Karmazin talks a big game, but Clear Channel's got 10 times the revenue base; short Sirius, go long Clear Channel. Mel's charismatic, but XM's way ahead in customers and cash flow; buy XM, short Sirius. Yeah, Mel may know that terrestrial game, but he's inherited a huge amount of overhead and excess contracts; short Mel, go long the S&P 500.

Blah, blah, blah.

Last night I believe Mel Karmazin demonstrated on my television show, "Mad Money," the reasons he is not so lightly dismissed. ("Oh Cramer, come on, he just did his usual sales job and you bit. There's nothing there." There, I'll even give you that counterpoint.)

Almost everything in business is selling. Sure, there is a tech component that's not selling, but that can be purchased. You need someone who believes to go knock on doors and make things happen. Karmazin is that guy. He's knocking on the doors and he is making things happen.

I see in his eyes the same thing I saw from people who first started the cell-phone companies in the 1980s, from the people who worked at Intel in the early 1990s, from people who started the Yahoo!s and the Googles just a few years ago. Those people knew they had something. They were zealous about it. They knew they had something people wanted and needed and craved. Most people don't have that. Most have to stimulate demand or cajole it or beat it over the head to make it happen.

Sirius is in a position similar to Yahoo!'s when Yahoo! was in the teens a couple of years ago. It was too big to be acquired, no one believed in it and it seemed wildly overvalued. Now, I don't think that Sirius has the same ability to have explosive growth, but I do believe that every car in this country is a candidate for its product -- every car. That's a big market.

So, go ahead and scoff. Go ahead and short. Sometimes, though, you just see it and you know it. You see the real deal and it stands out.

Sure, I wish it were at $2 again. That would be terrific. Then everyone would know to buy it.

It's not going to happen, though.

I don't expect to convince any of the nonbelievers out there to buy it. I just have to have people understand that it isn't worth betting against, that Mel's not worth betting against. If I do that, I have done the right thing.

from adage.com

WHY MEL KARMAZIN IS SIRIUS ABOUT RADIO ADVERTISING

An Interview With The New Satellite Media Mogul

NEW YORK (AdAge.com) -- Sirius Satellite Radio's ad revenue will rocket from $1 million to $100 million by 2007, CEO Mel Karmazin predicts, turning one of the hottest consumer electronics segments into one of the fastest-growing advertising mediums.

But the bullish executive will have to reconcile his aggressive advertising growth plan with subscribers' strong resistance to commercials.

In an exclusive, broad-ranging interview with Advertising Age, Mr. Karmazin said he is in exploratory talks with the likes of Apple, Sony and Motorola to embed satellite capabilities into iPods, hand-held game players and cellphones.

"One day maybe iPod will be interested in putting in a satellite radio," said Mr. Karmazin. He said he last talked to Apple CEO Steve Jobs late last year, and while he didn't specify the topic of that talk, added, "The conversations are always ongoing about things we can do together, even if it's not necessarily music but some of our other content. We're constantly talking to all potential partners, including cellphone people and game companies, to make the product as widely distributed as possible."

His bullish outlook for the nascent -- some say interim -- radio technology includes Sirius turning a profit by 2007. He predicts satellite radio, now with five million subscribers (about 1.4 million for No. 2 Sirius), will ultimately match the reach of cable and satellite TV, with about 100 million subscribers.

Mr. Karmazin, who recently hired two veteran radio executives to build a sales force, said Sirius will record ad revenue of up to $8 million this year, $50 million in 2006 and $100 million by 2007. Yet he has no plans to introduce ads, or even sponsorship opportunities, on Sirius' 65 music channels, since commercial-free programming is the lead factor in driving paid subscriptions.

Instead, Sirius plans to sell ads on its 55 news, talk, entertainment and sports channels, relying for growth on flexible ad units -- including 2-minute commercials and program sponsorships -- premium ad pricing (based on less clutter), and satellite's national footprint.

"The advertising piece is a very material piece," said Mr. Karmazin, 61, the former Viacom chief operating officer who joined Sirius last November. Ad revenue in 2007 combined with an expected 6 million paying subscribers will generate profits for Sirius that year, he said.

In his talk with Ad Age, Mr. Karmazin also shared his views on the de-consolidation of the company he formerly led, Viacom; the specter of the Federal Communications Commission regulating satellite radio; and the possibility that Sirius and rival XM-which has 3.8 million subscribers -- will eventually merge. A full transcript of his comments appears below.

Advertising Age: This medium is either going to transform radio or be an interim step to some new form of digital audio. Which is it?

Mr. Karmazin: Satellite radio will be bigger than cable and satellite television combined today. Cable and satellite television have about 90% penetration in 108 million homes. If you add our market to the home market, there's 200 million cars on the road, so I believe the market is going to be bigger than most believe it's going to be. The single most important benefit that satellite radio has is the two streams of revenue. We're assuming that advertising is going to be anywhere from 10% to 30% of our revenue. So you take the 30% model, we still see 70% of it coming from subscriptions. We also have the ability to make things national, so that when Howard Stern joins, instead of being syndicated in 40 or 50 markets, he will be available throughout the U.S. There's no question in my mind that this thing is not only for real, it's huge.

AA: How much do you worry about advances such as streaming audio, or iPod cutting deals with automakers?

Mr. Karmazin: There's always competition. I remember when they put 8-tracks in the car, everyone said, 'What's going to happen to radio?' Listening to radio is a very different experience than listening to your own music. The iPod product is a great product; it will be ubiquitous. But it will co-exist with radio. Before you have satellite radio, you're spending about 47% of the time listening to FM radio, 37% listening to iPod or a CD player or other music and 12% listening to AM. You put a satellite radio in your car, you're spending 83% of your time listening to satellite, 7% to other music devices and the rest is split between AM and FM. It's more likely that the iPod use in the car will be dramatically lower because of satellite radio. We will have a new-generation chip set that will be out there for the holidays and it will put the sort of PVR device in the satellite radio so you'll have storage of your music. One day maybe iPod will be interested in putting in a satellite radio.

AA: What was the last conversation you had with Steve Jobs?

Mr. Karmazin: It was before the [Consumer Electronics Show], before the end of last year. The conversations are always ongoing about things we can do together, even if it's not necessarily music but some of our other content. We're constantly talking to all potential partners, including cell phone people and game companies to make the product as widely distributed as possible.

AA: How do you reconcile the advertising potential of this medium with the appeal to subscribers of its commercial-free nature?

Mr. Karmazin: You should assume that we will never -- well, never's a long time -- have commercials on our music stations. We have 65 music channels. We then have 55 other channels that are mostly news, talk, sports, where we will have limited commercial inventory. We want people to see a definite distinction between satellite and terrestrial radio so even when we run commercials, there will be far less clutter. We haven't yet disclosed the number of commercials the Howard Stern show will run but they will be materially, noticeably lower than the number of commercials he's currently running. Supply and demand will tend to dictate that the price per unit will be higher if there's not as much inventory available

AA: Last year you sold $1 million in ad time out of $67 million in total revenue, but you think you can get to 30% of revenue?

Mr. Karmazin: Most analysts forecast 10% to 30%. I don't need to go to 30%, but I'm giving you the sense ... that $1 million becomes $7 [million] or $8 [million] this year. That becomes $40 [million] to $50 [million] next year. That becomes about $100 million the following year. The base is very small. The advertising piece is a very material piece, and we think it will even get more national advertisers to use radio because for the first time they have this national platform.

AA: How else will you differentiate what you do with advertisers?

Mr. Karmazin: We have the opportunity to creatively accommodate advertisers. When terrestrial radio's trying to get more advertisers to go to 30s, we'll give you a two-minute commercial. You want to buy out a channel and be the sole sponsor? We can entertain it.

AA: You put a qualified never on advertising on the music channels. Why not do other things there, like have someone sponsor a certain hour?

Mr. Karmazin: It's such a strong, compelling argument when people go into retail to buy the product. Traditionally, this commercial-free idea of music was the No. 1 driver for why people subscribe to Sirius. The No. 1 annoyance consumers have to music on radio has been the commercials. Our business works so well with that paid subscriber that we don't need to mess with it by putting commercials on it.

AA: Don't you need better audience and listener data as you become more of an advertising business?

Mr. Karmazin: We don't think that necessarily having Arbitron or Nielsen ratings is what companies are really interested in. They're interested in getting results for their investment. Anything we need to do in the areas of research, we will. We're also very focused. We have a gay lifestyle channel, and advertisers who want to reach that market are on with us now. When advertisers feel they need to have these more quantifiable research data, we can obviously consider it.

AA: When are you going to be profitable, and what's the critical mass of subscribers you need to get there?

Mr. Karmazin: In 2007, we generate positive cash flow. If you look at most analysts, they would have us in 2007 at the 6 million subscriber level. We haven't given more guidance than that, but that's about where it becomes profitable. Then, the satellites are up, you've paid for your programming, so once you've exceeded your fixed costs an extraordinary amount of the incremental drops down to your bottom line.

AA: What is terrestrial radio's biggest weakness?

Mr. Karmazin: Terrestrial radio's a great business. It's just become a mature business. I look at radio as very similar to newspaper business, very similar to TV in that it is a GDP growth business. It's withstood an awful lot of competition, and it will be around for a very long time. In competing with satellite radio, they have definite disadvantages.One is that our sound quality today is better. The other is the commercial-free nature of the music. The other advantage we have has been our bandwidth, that when a local radio station can run one football game in a market, we're running every football game that's being played.

AA: There are questions about whether this market can sustain two players. Why can't I get football and baseball? What's going to happen there?

Mr. Karmazin: I don't know what will happen, but I certainly wouldn't rule out anything that is in the American public's best interest. You are dealing with two companies -- it would be great if there was a monopoly, but the second best thing to a monopoly is a duopoly. And if the market is as big as we think it is, you're going to get two very profitable companies. There is nothing inherent that would ever preclude the two companies from either having interoperable radio or shared content. That's not the current business plan, but nothing would ever stop that.

AA: Are there talks along those lines?

Mr. Karmazin: No. The only talks that are going on right now is we committed to the [Federal Communications Commission] that we would develop an interoperable radio. We have a team of people working in a lab that both companies are funding to get interoperable radio done. I believe in about a year there will be such a device. What you do with that device is to be determined.

AA: What's the likelihood that these companies will be merged?

Mr. Karmazin: I don't know where the government would be on that. I know that at the time when Echostar and Direct TV were talking, the government thought there was an interest in having two companies on the TV side. There certainly would be economies of scale and efficiencies if there was a combination of those companies, but we haven't had any discussions.

AA: But you're not automatically opposed to it?

Mr. Karmazin: The business model that we are following is that we are an independent company. We're growing dramatically, and prospects for the future are really good. We don't need to combine with anybody [or] be part of a bigger company.

AA: XM is focused more on distribution deals while Sirius has played up content deals. What are the plusses and minuses of each strategy?

Mr. Karmazin: XM started ahead of us, so their next generation chip set was always out before ours. That head start enabled them to have a lead on the product and have a lead on some of the distribution deals they had with automakers. In 2002, we had 8% of the satellite radio market. Most analyst estimates have us well over 30% of the market this year. At the end of the day what is going to make one company bigger than the other company -- and I do think this is a Coke/Pepsi -- is the one who gives the consumer and advertiser the best content.

AA: Howard Stern did a lot to raise awareness of the brand name of Sirius. What else do you guys need to do in terms of consumer marketing?

Mr. Karmazin: Our brand awareness has gone from 6% in 2003 to 36%. But there's still a big market we haven't penetrated. We have a very large advertising budget. We will continue to do campaigns: TV, newspapers, radio when the stations aren't paranoid to not want us there.

AA: Hyundai is going to make XM standard next year. Ford is adding Sirius as a factory-installed option. How important are those steps?

Mr. Karmazin: The fact for satellite radio that a company has committed already to make it standard is a big deal and that sends a message to the entire automotive industry.

AA: What do you think are the odds that Congress and the FCC will move to regulate satellite radio when it comes to decency standards?

Mr. Karmazin: I can't deal with the politics of it. Indecent speech, and Howard's show is not indecent, is protected speech under the Constitution. The interest that the government had in indecency was protecting children. In free, over-the-air broadcasting, you can't restrict the program from coming into your home. In the case of cable and satellite television and satellite radio, you can restrict it. So the idea of the government regulating HBO or regulating any of the cable TV channels or satellite radio channels, I don't see what the legal basis of it is.

AA: What does the potential deconsolidation of Viacom say about the growth prospects for traditional media?

Mr. Karmazin: The two growth areas in media today are Internet and satellite radio. This is huge growth that continues for many years. Whether or not you look at a company that's together or separate or broken up, you look at the categories of advertising that are growing. Cable advertising is still growing in double digits. Terrestrial radio, terrestrial TV, newspapers, magazines are growing modestly.

AA: Is it a death knell for cross-platform ad deals?

Mr. Karmazin: No. Generally speaking, it's better to be bigger than smaller. When P&G and Gillette are combined, at a time when there's going to be even more consolidation on the advertising agency side ... at the time when you have to negotiate with those people and they are so much bigger and have leverage, the bigger you are, the stronger you are. I'm not in a big company that has that diversified asset base, but if I was, I would capitalize on the strength of all of those assets.

AA: What impact do you think consumer-empowering technologies such as Tivo, iPod and Sirius will have on traditional advertising?

Mr. Karmazin: There are just going to be more choices. If you think about the big media, where advertisers are spending a lot of money, they are going to be less valuable. Everything that's going on is great for the consumer, it's not so great for the big media companies.

AA: And for advertisers?

Mr. Karmazin: There are challenges, there are difficulties, but I also think there are opportunities.

AA: What's your favorite Sirius channel?

Mr. Karmazin: CNBC.

AA: Which of your competitor's programs do you most wish you had?

Mr. Karmazin: I would like to have had baseball, but XM paid about $60 million dollars a year for the contract, and that's more than we paid for all of our sports.

AA: Which show or format is not in satellite radio now that you want?

Mr. Karmazin: We are pretty well strategically complete, although you'll see a lot more content things, such as more Asian programming. Once Howard started, the switchboard lit up. Not just sales people calling who would like to be part of a growth company again, but a lot of talent that would like to migrate from terrestrial radio to satellite radio.

from the LA Times
April 7, 2005

EDITORIAL

Indecent Censoring

What's next? Some vote-hungry politician embracing the death penalty for offending programmers? It doesn't help that the new chairman of the Federal Communications Commission, Kevin J. Martin, ingratiated his way into the job by playing to social conservatives. His job is not that of censor in chief.

Martin tried to sound a conciliatory note at a cable industry confab in San Francisco on Tuesday, mainly by stating the obvious point that he has no jurisdiction to crack down on cable smut. But given his track record, there was something ominous about his exhortations that cable executives clean up their act. There was an implicit "or else."

Instead of addressing cable executives, Martin should be busy clarifying what constitutes indecency for broadcasters and end the confusion that is causing them to unnecessarily censor themselves to the detriment of viewers - as happened last year when some ABC affiliates refused to air the Steven Spielberg film "Saving Private Ryan" for fear that its profanity would trigger FCC fines.

Broadcasters complain that they are not competing on a level playing field because cable networks don't face the same regulatory scheme, which is justified by the fact that the airwaves are a scarce public resource. Some disparity is unavoidable, and the worst thing that could happen - at least until courts ruled the move unconstitutional - would be for Washington to try to impose the same restraints on cable that broadcasters face.

A better way to address the disparity now is by loosening the controls on broadcasters and making the rules clearer.

As for the cable industry, it could ease some of the political pressure on itself if it devised a programming ratings system that was consistent, coherent and believable.

The industry also must do a better job of promoting and explaining the existing technology that parents can use to keep their homes free from programming they find offensive. Most households get television programming (including broadcast fare) through cable or satellite services that already allow parents to keep their children from watching potentially offensive channels. Digital technology is giving parents the ability to block specific programs.

Finally, cable operators would be wise to allow consumers to purchase programming on an a la carte basis. If you don't want it, don't buy it.

from fmqb.com
April 6, 2005

Howard Stern Begs Viacom To Fire Him

"Infinity should get me out of here," said Stern. "They're holding me to the contract and I'm afraid to break the contract, because I don't want to ever do anything illegal or wrong. I'm very, very clear on that. I'm a pretty honest guy. I try to live by the laws, but it seems like I'm being set up."

Stern railed on politicians for considering legislation that would regulate pay services such as cable television and satellite radio. "For years they have tried to get me off radio and television," said Stern. "Sponsors haven't gone away. The audiences haven't gone away. I've got the number one goddamn radio show in the country and it's driving people nuts."

"All of a sudden this heat is on me," he continued. "And regulating satellite and cable, it has nothing to do with indecency. It has to do with Clear Channel somehow getting ahold of the politicians they back and saying 'You bastards, we're going to lose all our radio stations to satellite. You've got to do something.' That's what has to be looked into. I find this very disturbing that since I signed my deal with satellite, there's a lot of rich, powerful people in this country trying to figure out how they hold on to these dumb radio stations of theirs and how they are going to get people to listen to censored media."

Stern was also annoyed over a report in the Los Angeles Times that Comcast CEO Brian Roberts is considering removing Howard Stern's E! show from the Comcast cable itinerary. "It is so ridiculous and frustrating," proclaimed Stern. "If E! pulls me off the air, I don't care."

"They can't figure out how to get rid of me, so they want to get rid of me by legislating me out of here," he said, adding later that he is "such a target of the government. And if anyone thinks I'm lying, one day I'll write the book."

"I am begging Infinity, Viacom to take me off the air," pleaded Stern. "If they care anything about me, let me go, please, today, serve notice on me. I want to leave. I swear to you, it serves my interests to stay here and do this show. Every day I do a good show, it reminds people to come to satellite radio. You are doing yourself an injustice by keeping me on the air. Let me go now. Let me leave. Let the audience forget about me."

from Yahoo! News
March 3, 2005

FCC's Powell Not for Cable Indecency Rules

"I personally don't really support an extension," Powell said in an interview on Fox News Channel. "I think when the Congress takes a hard look at this, if they really study the constitutionality ... that it's difficult and unwise to extend it."

His remarks came several days after two congressional Republicans with influence over telecommunications issues indicated they would consider legislation to make cable and satellite stations adhere to indecency guidelines.

Sen. Ted Stevens, R-Alaska, head of the Senate Commerce, Science and Transportation Committee, said Tuesday he would push for such a measure in part because most viewers don't differentiate between traditional broadcasting and cable so they don't know when they might be exposed to objectionable programming.

The chairman of the House Energy and Commerce Committee, Rep. Joe Barton, R-Texas, also said he would support legislation "if we can work out the constitutional questions."

A similar proposal was narrowly rejected by the Senate committee last year.

Federal law bars nonsatellite radio stations and broadcast television channels from airing certain references to sexual and excretory functions between 6 a.m. and 10 p.m., when children are most likely be tuning in.

The FCC has no power to regulate cable and satellite stations. Cable groups have cited a 2000 Supreme Court ruling that said Congress violated free-speech rights when it sought to protect children from sexually oriented cable channels.

The anti-smut law enacted in 1996 had required cable systems to restrict sex-oriented networks to overnight hours if they did not fully scramble their signals for nonsubscribers.

A cable indecency standard would face legal uncertainties in part because subscribers have chosen to pay for the service, Powell said. Over-the-air broadcast programming is free.

Powell, in another interview Thursday with CNBC, said cable and satellite subscribers in most cases can block out unwanted channels.

"While I support the indecency enforcement that we do have, at the end of the day, what we really should be doing is making sure that consumers have the tools they need to make the choices be theirs," he said.

Powell and the other four FCC commissioners have supported efforts to raise indecency penalties. The House last month overwhelmingly passed a bill to raise the maximum indecency fine from $32,500 to $500,000. A similar bill has been introduced in the Senate but has not had a hearing.

from FOX News
March 1, 2005

Congressional GOPers Favor Cable Decency Rules

Most viewers don't differentiate between traditional TV and cable so they don't know when they might be exposed to objectionable programming, Sen. Ted Stevens, R-Alaska, head of the Senate Commerce, Science and Transportation Committee, told the National Association of Broadcasters in Washington.

"In this country, there has to be some standards of decency," said Stevens, who said he would push for such legislation.

The National Cable and Telecommunications Association, a trade group, said people choose to pay for channels and, as part of their subscription, are able to block programming they don't want seen in their homes. Because of that, the group said, any legislation would face an uphill battle in court.

Rep. Joe Barton, R-Texas, head of the House Energy and Commerce Committee, voiced support for the idea of indecency guidelines for cable and satellite and said he would consult with Stevens on possible legislation.

"It's not fair to subject over-the-air broadcasters to one set of rules and subject cable and satellite to no rules," Barton told reporters after a separate appearance before the broadcasters group.

The House last month overwhelmingly passed a bill to raise the maximum indecency fine from $32,500 to $500,000. A similar bill has been introduced in the Senate but has not had a hearing.

Federal law bars nonsatellite radio stations and noncable television channels from airing certain references to sexual and excretory functions between 6 a.m. and 10 p.m., when children are most likely be tuning in.

The Federal Communications Commission has no power to regulate cable and satellite stations, which are available to about 85 percent of the roughly 108 million U.S. households with televisions.

In December, the FCC rejected a request from a radio station owner that the FCC begin imposing broadcast indecency regulations to subscription satellite services.

Last year, FCC Chairman Michael Powell told the broadcasters group that he did not "generally support the extension of content rules to cable and satellite unless Congress supports a statement asking us to do so."

The broadcasters association, which represents free, over-the-air radio and TV stations, has been critical of the lack of indecency guidelines for cable and satellite stations.

"If a 5-year-old uses the clicker ... he can't differentiate between the over-the-air signals and a cable signal," said Edward Fritts, the association's president.

The cable group pointed to a 2000 Supreme Court ruling that said Congress violated free-speech rights when it sought to protect children from sexually oriented cable channels like Playboy Television.

The anti-smut law, enacted by Congress in 1996, had required cable systems to restrict sex-oriented networks to overnight hours if they did not fully scramble their signals for nonsubscribers.

Cable companies have instituted a public service campaign in the last two years to educate customers about channel-blocking tools, said Brian Dietz, a vice president for the cable group.

from the NY Post

FEDS PROBE STERN PAL'S SIRIUS CASH WINDFALL

March 2, 2005 -- Investigators looking into insider-trading allegations in the blockbuster deal between Howard Stern and Sirius Radio are checking out reported boasts by the shock jock's limo driver that he profited from the deal, The Post has learned. The announcement last Oct. 5 that Stern would ditch Infinity Broadcasting for Sirius sent shares of the satellite broadcaster skyrocketing.

The next day, Stern said on-air that his driver, Ronnie Mund — known on the show as "Ronnie the limo driver" — bragged in the studio about how he had bought Sirius stock cheap before his boss joined the company.

The Securities and Exchange Commission apparently took notice, and sources say the feds are trying to determine if Mund had inside information about the deal.

Before Stern's move to Sirius had been announced, there had been speculation in the press that he might flee his current home at Infinity for the satellite broadcaster. But the feds are trying to find out if anyone had nonpublic information that the move was a done deal and profited from it.

New York gossip journalist Chaunce Hayden, editor of "Steppin' Out" magazine and a frequent guest on Stern's show, has already been subpoenaed to answer questions about what he heard in Stern's studio around the time of the October announcement.

Hayden faced questioning from SEC lawyers last week, but declined comment on the proceedings.

Sirius, meanwhile, has said, "We have no reason to believe this matter involves Sirius or any actions of its officers, directors or employees, and neither Sirius nor any of its officers, directors or employees have received a subpoena in this matter."

Mund could not be reached for comment.

from fmqb.com

In The Clear? Howard Stern’s Former Clear Channel Affiliates A Year Later

February 25 is the anniversary of Clear Channel unceremoniously suspending Howard Stern from all six of its stations that carried the syndicated morning program. It wouldn't be until April 8 that the suspension became a permanent dismissal, leaving WBGG/Miami, KIOZ/San Diego, WXDX/Pittsburgh, WTKS/Orlando, WNVE/Rochester and WTFX/Louisville in morning limbo.

For each of these stations, it's been a long year since the Fall 2003 Arbitron ratings period, the last full book with Stern on their airwaves. Go pull the breakouts for the final month of Arbitron's Winter 2004 ratings period and you can see what it looks like to rip the foundation away from a radio station one month prior to the all-important Spring book. And even though Stern's exit came down in February, the stations had to wait to put on a new morning show until the suspension was made final in April.

With the recently released Fall 2004 book, mainstream press outlets picked up on the devastation felt by Stern's former Clear Channel outlets. Stern had a grand time reading an article by CNN/Money staff writer Krysten Crawford that pointed out each station’s Persons 12+ morning drive ratings drop. Classic Rock WBGG slid from fourth to fifteenth. Active Rock KIOZ fell to twentieth from fifth. Talk WTKS dropped from second to eighth. Active Rock WNVE went from sixth to fourteenth. Active Rock WTFX slipped from third to ninth and Modern Rock WXDX was singled out for its drop from third to eleventh. Looking deeper beyond the 12+ numbers at the core demos and overall health of each station reveals a picture that isn’t as bleak as the one painted by Crawford.

WNVE (The Nerve) is really the only station that has been completely decimated by Stern's departure. Once #1 Persons 18-34 in morning drive, the station is now #11. Overall, The Nerve dropped from eighth to sixteenth Persons 12+, from sixth to thirteenth Persons 18-34 and from eighth to sixteenth Persons 25-54. Men 18-34 dropped from first to eleventh, while Men 25-54 dropped from third to fourteenth. The morning drive drops are even worse. To top off the destruction, Infinity returned Stern to the market on crosstown competitor WZNE (The Zone) and he promptly picked up where he left off propelling The Zone to a #1 18-34 finish.

Stern’s two former affiliates in Florida – WBGG and WTKS – have both stumbled, but haven’t fallen. While WBGG slid from fourth to fifteenth in morning drive, the overall numbers for the station remain virtually the same from Fall 2003 to Fall 2004, holding steady at a 2.4 Persons 12+, slipping 2.9 to 2.2 Persons 18-34 and 3.9 to 3.5 Persons 25-54. Meanwhile, WTKS did drop from second to eighth in morning drive without Stern, but the rest of the station’s dayparts remained untouched. Middays slipped a little due to the loss of Stern carrying over into the daypart, but afternoon drive went up and nights held steady for the station.

The station that has fared best without Stern is WTFX (The Fox), which remains Louisville’s top Rock station and still has solid 18-34 numbers. ”Our upper demo was hit when Stern left,” said Clear Channel Louisville Director of Rock Programming Michael Lee, explaining that the goal of the station shifted to “focus on the core 18-34 and super serve them with music, personality and promotions.”

One-way WTFX focused came once Stern’s departure was confirmed. The station launched The Backstage Morning Show, which had national bands fill in during morning drive for a week at a time. Metallica, Linkin Park, Disturbed, 3 Doors Down, Kid Rock, and Dimebag Darrell, among others filled the void until August 15 when The Morning Movement with Tony & Dwight were hired as Stern’s permanent replacement.

"The response we got to it was amazing,” said Lee. “I only expected to kick off the Spring book with the promotion and it ended up running for two months, which helped us bridge over from Stern and get people's minds off his show."

Lee says it was a team effort to keep WTFX rolling. "The jocks really believed what we were doing and executed the game plan well,” asserts Lee. “We kept the same game plan with the music and focused on 20-29 year-old males. There was no way we could keep both ends. We had to choose. Since we have a Classic Rock sister station, WQMF, we decided it would be best for us to focus on the lower end and for them to hit the 25-54s."

A lot of Stern’s listenership landed at WQMF with Bob & Tom. So while the Stern fans were departing one Clear Channel outlet, they were being kept within the company by landing at another. “We had the luxury of the Classic Rock station picking up the upper end,” says Lee. “It was a battle, but after all is said and done, we're going to come out as well as anybody. We have a great stick, great personalities and The Fox has been here going on twelve years, and we have very a strong brand in the market.”

Lee says one key in recovering post-Stern is “we never made Howard the focus of the radio station. Stern was a morning show that was part of the station, but we really promoted other dayparts throughout his show and as soon as he was off, we never mentioned him again. It was about the station, the ties to the community and branding the station as a lifestyle oriented Rock station. He was a great part of the station, but we wanted to make sure it was The Fox they were listening to, remembering and writing down.”

In Pittsburgh, WXDX (The X) was in a similar position, but Stern’s departure hit them a little harder than at WTFX. It was swift and cut deep. By the Summer 2004 book, morning drive on The X had dropped from third place to fifteenth for Persons 12+ and from second to seventeenth Persons 25-54. And while the Persons 18-34 numbers sunk from 15.3 to 6.1, the station remained Top Five in the demo. Overall, the station ranked fourth Persons 18-34.

“The younger end was far less angry with Howard leaving than the upper demo was,” says WDVE-WXDX OM John Moschitta. “If you are a 40-year old guy that was a P3 for The X anyway, why would you still listen? Whereas the 25-year-old guy was kind of pissed off, they liked Howard, but still liked the station. There is a little more of a forgiveness factor.”

WXDX had to deal with Stern returning to the market in July when Infinity blew up CHR WBZZ (B937), replaced it with "93.7 K-Rock" and positioned the station between WXDX and sister station Heritage Rock WDVE. But The X made a pre-emptive strike by moving longtime afternoon drive personality Alan Cox to mornings just a week ahead of Stern’s return.

“Alan has some heritage in the market and has been here over five years,” says Moschitta. “With the core of The X audience, there is a comfort factor and they know what to expect from him. It seemed to us like an obvious play to move him to morning drive, rather than start over with something that was untested and untried in Pittsburgh. We knew he had the talent, intelligence and humor to do what we needed in morning drive."

The Fall 2004 book was the first full head-to-head battle between Stern, Cox, and the DVE Morning Show. Stern easily dominated Persons 18-34, but ranked behind WDVE Persons 12+ and Persons 25-54. Moschitta says The Alan Cox Show held its own. “With any new morning show, there is a growth process involved,” he says. “Now throw in the other x-factor that Alan is replacing Howard and, oh yeah, Howard is back in the market, it makes it doubly tough. Take away that stuff and he is doing what a new morning should be doing. He's starting to grow and gain an audience. He's getting comfortable and getting his feet wet. I'm pleased with it. We're eight months in and he is in a solid position and growing as he goes along.”

While WXDX has lost a little cume since Stern’s exit, it has gained in other dayparts, now ranking #1 Persons 18-34 in middays, which never happened when they had Stern. K-Rock drops from an 18.1 Persons 18-34 to a 9.5 in middays, while The X pops up from 8.2 to a 10.4. So while The X took a morning hit, the rest of its dayparts have been growing. This phenomenon is also happening in San Diego at Stern’s former home in Southern California, KIOZ, according to Clear Channel RVP/Programming Jim Richards.

“Rock 1053 was always a really good hard Rock station that had a really good morning show,” contends Richards. “It wasn't just that we were the Howard Stern station and everybody bailed. We’re doing really well in middays, afternoons and evenings.”

The ratings back up Richards’ assessment. Looking at Rock 1053’s core 18-34 demo, the station is up in all dayparts outside of morning drive since Stern’s departure. While Stern’s replacement, The Mikey Show, has yet to take hold, Richards feels it is just a waiting game. “Mikey's done an amazing job,” he says. “We believe once Howard leaves terrestrial radio, that's where our biggest growth opportunity comes for the Mikey Show. He's doing well now, but we expect it to get that much better in January 2006.”

Stern returned to the market via Infinity’s KPLN (The Planet), bringing the station great morning numbers, but the rest of the station has not been helped by the addition of Stern, barely registering a blip in Arbitron numbers. “Howard messed up Planet,” claims Richards. "Planet was always a music station, but now they have all the Howard fans coming in during the morning and pushing out all the music fans."

At first glance, yes, Clear Channel’s six stations that dumped The Howard Stern Show have suffered, but the reality is only one of them has completely been destroyed while the other five have regained traction in various forms.

from the NY Daily News

Chaunce SEC meeting

Faces lawyers for 2 hrs.

BY PHYLLIS FURMAN
DAILY NEWS BUSINESS WRITER

Chaunce Hayden, the gossip journalist caught up in the Howard Stern Sirius insider-trading probe, was grilled for two hours yesterday by five SEC attorneys - but Hayden's lawyer said he is not the target of the investigation.

"My sense is he's not the subject of the probe," Hayden's attorney, Robert Horowitz, told the Daily News yesterday.

But Hayden told The News he'd be "shocked" if the probe "began and ended with me."

After meeting with the SEC lawyers, Horowitz described the government's probe as an "inquiry into trading activity in advance of an announcement."

"They're trying to find out if there's any impropriety," Horowitz noted.

Horowitz said he was not aware of others being fingered by the government in connection with trading in Sirius stock ahead of the Oct. 6 announcement that shock jock Stern was heading to the satellite radio giant.

Sirius spokesman Patrick Reilly said, "Neither Sirius, nor any of its officers, directors or employees have received a subpoena in this matter."

After the two-hour questioning, a shaken Hayden emerged from the SEC offices in the Woolworth Building in lower Manhattan and said he hopes his nightmare "is over with today. I can't tell you how much I want it to end."

He told The News he has never owned Sirius stock.

Hayden is a regular guest on Stern's show and was in Stern's studio the day the radio megastar announced he was heading to Sirius.

A couple weeks before, the gossip writer predicted on a TV show that Stern would make the leap from his current employer, Infinity, to Sirius, but has said he based that on his own reporting, not inside information.

In the five days before Stern made the big announcement, Sirius stock rose 26%. It jumped another 30% early on Oct. 6, and finished the day up 16% at five times the stock's normal volume.

Meanwhile, Viacom - the media giant that is losing the shock jock to Sirius in 2006 - posted a massive $18 billion loss yesterday, to reflect the faltering of its Infinity radio and outdoor division.

The writedown was a charge that is required by accounting rules when assets decline in value.

Like the rest of the radio business, a once powerful Infinity is struggling with slowing ad sales and fewer listeners. The industry is facing increased competition from satellite radio kingpins Sirius and XM, as well as from Apple's red-hot iPods.

Viacom plans to sell radio stations in smaller markets but said yesterday that it's plowing dollars into its stations in large cities.

from MySanAntonio.com

Clear Channel, Howard Stern withdraw lawsuits

L.A. Lorek
Express-News Business Writer

In an end to an acrimonious relationship, Clear Channel and radio shock jock Howard Stern have agreed to withdraw their lawsuits related to Clear Channel removing Stern's show from its radio stations.

“We are pleased to resolve this contractual dispute with Howard Stern without further legal expense and delay," Andy Levin, Clear Channel's executive vice president and chief legal officer, said in a news release. “Today, Clear Channel stations are entertaining listeners without being indecent, and we intend to keep it that way."

Stern did not issue a news release, and e-mail and phone messages left this afternoon with Howard Stern's agent Don Buchwald have not yet been returned.

Last July, One Twelve, Stern's company, and Infinity Broadcasting East Inc., which syndicates his show, filed breach-of-contract lawsuits against Clear Channel seeking $10 million in damages.

Stern claimed Clear Channel broke its contract with him when the company didn't notify him before pulling his shows off Clear Channel's network.

A few weeks later, Clear Channel countersued Stern and Infinity, claiming breach of contract and demanding more than $3 million in damages.

Clear Channel claimed Stern broke his contract with the radio station company because he violated Federal Communication Commission indecency rules. Clear Channel dropped Stern's broadcasts from its airwaves after receiving complaints about Stern's explicit discussion of sex and body parts on his show.

Clear Channel stopped airing the Stern Show in February 2004 as a result of repeated federal indecency violations.

Last year, Clear Channel agreed to pay the Federal Communications Commission a $1.75 million fine to settle indecency charges pending against the company. At the time, Clear Channel faced complaints concerning 200 broadcasts, including on-air remarks by Stern.

In addition to announcing the Stern agreement, Clear Channel criticized the federal government's regulations concerning radio content, compared to other media outlets.

“Congress and the FCC should be troubled that the current law unwittingly creates a safe haven for indecent programming on other media platforms, including satellite radio, Levin said. “Unfortunately, these outlets are fast becoming the wild west for sexually explicit programming. The law needs to catch up to the technology," Levin said, “or our children will be the ultimate victims."

Last year, Stern announced plans to leave his traditional radio show to join Sirius Satellite radio.

During an interview with David Letterman in November, Stern blamed Clear Channel for the problems in radio today. Stern also claimed Clear Channel censored him because of his outspoken criticism of President Bush.

from Reuters
February 19, 2005

Journalist Says SEC Subpoenas Him on Stern, Sirius

NEW YORK (Reuters) - A self-described celebrity journalist who is a frequent guest on raunchy radio host Howard Stern's shows said on Saturday that U.S. securities regulators have subpoenaed him in a probe of possible insider trading in Sirius Satellite Radio Inc. stock.

Chaunce Hayden told Reuters the Securities and Exchange Commission has ordered him to appear on Wednesday in New York to give information about trading in shares of Sirius, Stern's future radio home.

Hayden said he had made an on-air prediction that Stern would leave broadcast radio for satellite radio and then coincidentally had been in the studio when the shock jock, a frequent target of federal radio regulators over decency issues, announced in October he would move to Sirius in 2006.

An SEC attorney in a phone call said he "wanted to know why I was up in the studio the day Howard made the announcement and if I heard anything that day, if there was anything spoken about, and he said he had a bunch of other questions as well," Hayden said.

He said he himself has never owned stock except in a 401-K retirement fund. Sirius stock rose more than 15 percent on the first day of trading after Stern's announcement.

Hayden said that the first few times the SEC attorney called he hung up. "I thought it must be a prank from one of the Howard Stern guys so I kept hanging up the phone. Then when I got the subpoena I realized it was not a prank, it's for real."

Hayden said that when he himself had interviewed for a job at Sirius, he had asked if the satellite radio system was going to hire Stern rivals Opie and Anthony and the interviewer had told him, "We're holding out for Howard Stern."

"With that information plus the hearsay and speculation," Hayden said, he made his cable TV prediction.

"Then several weeks later Howard made the announcement live on the air that he was doing it and it just so happens, and it was just a coincidence, I was the only journalist in the studio that day he made the announcement."

An SEC spokesman had no comment.

Spokesmen for Stern and Sirius could not immediately be reached for comment.

The New York Post reported that a Sirius spokesman said neither the company nor any employee had received a subpoena in the matter.

On Oct. 6, Stern said he would leave his program, syndicated by Viacom Inc.'s Infinity Broadcasting unit, when his contract expires in January 2006. He said his five-year deal with Sirius is worth $500 million.

The fledgling satellite radio market pits Sirius -- which has just above 1 million subscribers -- against larger XM Satellite Radio Holdings Inc., with 3.2 million.

The Federal Communications Commission fines broadcast radio but not satellite radio for content it finds indecent. (Additional reporting by Caroline Drees)

from fmqb.com

Sirius Stock Shock Over Howard Stern Deal

An insider trading probe by the Securities and Exchange Commission has been started to see whether or not someone knew Howard Stern's deal with Sirius Satellite Radio was coming. The New York Post confirmed the probe with frequent Stern guest and New York gossip journalist Chaunce Hayden, who has been served with a subpoena regarding "trading in securities of Sirius Satellite Radio." Hayden is scheduled to appear before the SEC on Wednesday (2/23) to discuss what he heard in Stern's studios at WXRK (K-Rock)/New York in the days prior to the deal being announced.

The Post reports that the SEC wants to "determine if someone who knew the deal was coming started buying up stock in anticipation of shares skyrocketing when the news got out." Last October, Sirius stock jumped almost 40% in the two weeks prior to the Stern-Sirius announcement and another 15% after the deal was made public.

"We have no reason to believe this matter involves Sirius or any actions of its officers, directors or employees, and neither Sirius nor any of its officers, directors or employees have received a subpoena in this matter," a Sirius spokesman told the Post.

When Stern made the announcement, on air reactions by the other members of his proogram, including long time producer Gary Dell'Abate and sidekick Robin Quivers, were of shock and surprise. For his part, in the days after the deal was announced, Stern said many times during his syndicated morning program that he had kept the deal quiet from his co-workers, friends, family and even his girlfriend Beth Ostrosky to avoid any problems with the SEC.

from the NY Post

SHOCK STOCK PROBE

February 19, 2005 - The Securities and Exchange Commission has launched an insider-trading probe of shock jock Howard Stern's deal to join Sirius Satellite Radio.

In the two weeks running up to the blockbuster announcement last October, Sirius stock soared nearly 40 percent.

Even though there had been some speculation in the press that Stern might jump to satellite radio, the feds want to determine if someone who knew the deal was coming started buying up stock in anticipation of shares skyrocketing when the news got out.

When Sirius made the surprise announcement, the stock jumped another 15 percent.

Yesterday, New York gossip journalist Chaunce Hayden, a frequent guest on the Stern show, received a subpoena from the SEC.

He was told he needs to appear before the SEC on Wednesday to answer questions about what he heard in Stern's studio around the time of the Oct. 6 announcement that Stern was leaving free radio for Sirius.

The subpoena is seeking information about "trading in securities of Sirius Satellite Radio," according to a copy obtained by The Post.

Hayden told The Post an SEC official told him the agency was investigating allegations of insider trading.

A Sirius spokesman said: "We have no reason to believe this matter involves Sirius or any actions of its officers, directors or employees, and neither Sirius nor any of its officers, directors or employees have received a subpoena in this matter."

An official for the SEC declined comment. A representative for Stern was unavailable for comment.

Stern, extremely frustrated by an ongoing battle with the Federal Communications Commission over his show's content, was lured to Sirius with a five-year, $500 million package for him and his team. It's unclear exactly what Stern's cut of that is, but he currently earns some $31 million a year, Forbes has estimated, and the Sirius deal is believed to top that.

The deal was hailed by some at the time as one of the most important in media history because it instantly legitimized the upstart satellite radio industry.

Stern will officially join Sirius next January. In the meantime, his show remains on Viacom's Infinity Broadcasting.

However, Stern has used his show to constantly plug Sirius, infuriating Infinity bosses and spurring speculation he may leave and join Sirius earlier than planned.

Sirius followed the Stern announcement in November by naming former Viacom honcho Mel Karmazin as its CEO. Shares of Sirius initially shot up about 20 percent at the time of the Karmazin announcement.

from CNN.com

House approves tougher indecency fines

Senate considers similar bill

WASHINGTON (AP) -- Chafing over racy broadcasts like Janet Jackson's infamous "wardrobe malfunction" at the 2004 Super Bowl, the House overwhelmingly passed a bill Wednesday authorizing unprecedented fines for indecency.

Rejecting criticism the penalties will stifle free speech and homogenize radio and TV broadcasts, bill supporters said stiff fines were needed to give deep-pocketed broadcasters more incentive to clean up their programs and to help assure parents that their children won't be exposed to inappropriate material.

The measure, which passed 389-38, boosts the maximum fine from $32,500 to $500,000 for a company and from $11,000 to $500,000 for an individual entertainer.

The bill enjoyed broad bipartisan support from lawmakers upset about incidents like Jackson's breast-baring "wardrobe malfunction" at the 2004 Super Bowl halftime show.

"This is a penalty that makes broadcasters sit up and take notice," said Rep. Joe Barton, R-Texas, chairman of the Energy and Commerce Committee that sent the bill to the full House. "This legislation makes great strides in making it safe for families to come back into their living room."

The White House, in a statement, said it strongly supports the legislation that "will make broadcast television and radio more suitable for family viewing."

The Senate is considering a similar bill. Any differences in the two will have to be worked out before it goes to President Bush for a signature.

Last year the two chambers were unable to reach a compromise.

Opponents said they were concerned stiffer fines by the Federal Communications Commission would lead to more self-censorship by broadcasters and entertainers unclear about the definition of "indecent."

They cited the example of several ABC affiliates that last year did not air the World War II drama "Saving Private Ryan" because of worries that violence and profanity would lead to fines, even though the movie already had aired on network TV.

"We would put Big Brother in charge of deciding what is art and what is free speech," said Rep. Jan Schakowsky, D-Illinois, who opposed the bill. "We would see self- and actual-censorship rise to new and undesirable heights."

Parents -- not the government -- are the best judges of what their children should see and hear, said Rep. Henry Waxman, D-California.

"No one knows when one person's creative work will become another person's definition of a violation of indecency," Waxman said.

The FCC has stepped up enforcement of the indecency statute, perhaps most notably with a $550,000 fine against CBS for Jackson's "wardrobe malfunction." Radio personality Howard Stern also has been a frequent target.

Fines for indecent programming exceeded $7.7 million last year. Four years ago, FCC fines totaled just $48,000.

The FCC has wide latitude to impose fines. It can fine an individual company, groups of stations owned by a company and individual entertainers. In the case of CBS, it imposed a fine of $27,500 against each of 20 stations owned by the network.

All five members of the FCC -- three Republicans and two Democrats -- favor greatly increasing the fines.

The House bill allows the FCC to fine an individual entertainer, such as a disc jockey, without first issuing a warning, which is the case now. The FCC has never before issued such a fine.

"By significantly increasing fines, they are going to be at a level where they can no longer be ignored," said Rep. Fred Upton, R-Michigan, who introduced the bill. "Parents can rest easy."

Under FCC rules and federal law, radio stations and over-the-air television channels cannot air obscene material at any time, and cannot air indecent material between 6 a.m. and 10 p.m. The FCC defines obscene material as describing sexual conduct "in a patently offensive way" and lacking "serious literary, artistic, political or scientific value." Indecent material is not as offensive but still contains references to sex or excretions.

The House bill gives affiliates protection from fines in instances in which they carry network programming that later is deemed indecent. It also requires the FCC to hold a license revocation hearing after a third offense by a broadcaster, and to respond to an indecency complaint from a viewer or listener within six months.

The Senate bill calls for raising the maximum fine on broadcasters to $325,000, with a cap of $3 million for one day. The House bill does not include a cap.

from money.cnn.com

No satellite radio for iPod? -- Mel Karmazin quotes Steve Jobs as saying there's no plan for satellite in the digital music player.

NEW YORK (CNN/Money) - Mel Karmazin, the new CEO of Sirius Satellite Radio, said he's talked recently with Apple Computer about adding satellite radio to its popular iPod music player.

"I've spoken to (Apple CEO) Steve Jobs," said Karmazin, speaking Wednesday morning at a media conference in New York. He declined to elaborate, other than to say that the "current thinking" at Apple is that "they don't need to put a satellite radio in their box."

An Apple spokesman did not immediately have a comment.

For either Sirius or XM Satellite Radio Holdings, a deal with Apple would be huge. Apple has sold more than 10 million iPods, which have been used to download some 230 million songs.

Karmazin noted at the McGraw-Hill Companies' 2005 Media Summit that the future success of satellite radio depends on content and the ability to distribute it across multiple devices.

So far, Sirius and XM have concentrated on lining up deals with automobile makers to install satellite radios in future car models. XM, the bigger of the two with more than 3.2 million subscribers, has exclusive deals with General Motors Corp. and Honda Motor Co. Sirius, with more than a million subscribers, has struck deals with Ford Motor Co. and DaimlerChrysler.

Under terms of these deals, the satellite companies give the car makers a share of the monthly subscription fees generated by the factory-installed devices. Karmazin said Sirius also helps pay for the initial installation.

But cars and iPods aren't the only distribution options open to either Sirius and XM, both of which are aggressively exploring deals.

April Horace, a satellite radio analyst with Janco Partners, said the consensus among industry watchers is that satellite radio and the iPod would be "the killer app." Apple's apparent apathy aside, she said there are significant legal and technical hurdles to clear before satellite radio can be added to the iPod or any other MP3 player like it.

"Do I think (a satellite radio-MP3 player combo) is going to happen some day in the future? Absolutely," said Horace. But whether XM or Sirius nabs Apple or another MP3 maker like Sony or Virgin first is anybody's guess, she said.

Satellite radio is not commercial-free

In other news, Karmazin also discussed the advantages satellite radio has over traditional AM-FM radio, including dual revenue streams from subscriptions and advertising.

A recent J.P. Morgan survey found that satellite radio's biggest draw is the absence of ads.

But that's only true for music channels, not the talk shows or sports channels. Of Sirius' 120 channels, 55 air commercials. Karmazin pledged Wednesday that music programming will remain ad-free and said the company will continue to be "very sensitive" to the commercial loads.

One unresolved question: how many ads will be broadcast on "The Howard Stern Show," which is set to move from Viacom to Sirius in January 2006.

"I can assure you (the advertising) will be less" than what it currently is on terrestrial radio, said Karmazin.

Howard Stern, the shock jock, cut a five-year, $500 million deal last year to jump to Sirius and is now the company's marquee player.

Karmazin, whose ties to Stern go back to the 1980s, reiterated that Sirius would welcome the chance to bring Stern on board before January, but said the desire to see that happen diminish as his start date approaches.

Last year there was widespread speculation that Stern would leave Viacom unit Infinity Broadcasting earlier than planned. Viacom executives were upset about Stern's blatant on-air promotions for Sirius, a competitor.

Stern, on his morning talk show, has since toned down his references to his pending move.

As for Stern, Karmazin also shot down speculation that Sirius was constructing a ground-floor studio at its mid-town Manhattan headquarters so passers-by could watch the ribald radio star in action weekday mornings.

Stern, said Karmazin, "tends to not like to do his radio show in front of people."

Instead, Sirius will use the space as a retail store.

from the signonsandiego.com
February 3, 2005

Congress ready to dramatically boost indecency fines

WASHINGTON – Whether or not there's a "wardrobe malfunction" at this weekend's Super Bowl, the new Congress appears ready to dramatically boost fines for indecency on the airwaves.

Bills in the House and Senate call for raising the maximum fine from $32,500 to as much as $500,000 per incident. There is strong bipartisan support in both chambers, with lawmakers saying their constituents have grown tired of coarse programming on radio and TV.

"My sense is we're not going to have any problems," said Rep. Fred Upton, R-Mich., chairman of the House telecommunications subcommittee. "With passage of this legislation, I am confident that broadcasters will think twice about pushing the envelope."

A similar effort gained momentum and passed the House and Senate after singer Janet Jackson's breast was bared at last year's Super Bowl. But the legislation fizzled after unrelated issues were attached to the Senate bill and lawmakers couldn't agree on a compromise.

Some changes since then have muted the issues that scuttled last year's effort.

Sen. Ernest "Fritz" Hollings, D-S.C., who wanted the bill to include a requirement that the Federal Communications Commission study violence on television, has retired.

Sen. Byron Dorgan, D-N.D., wanted Congress to block media ownership rules adopted by the FCC. But a federal appeals court threw out those rules, and the FCC has decided not to appeal.

Outgoing FCC Chairman Michael Powell and all four fellow commissioners – two Republicans and two Democrats – strongly support harsher penalties for indecency violations.

The FCC began stepping up enforcement of indecency rules even before the Jackson incident, which fellow performer Justin Timberlake famously blamed on a "wardrobe malfunction." But the Super Bowl focused public attention like nothing before. Over half of the 1 million indecency complaints filed with the FCC last year were related to the incident.

Fines for indecent programming exceeded $7.7 million last year, including a total of $550,000 against 20 CBS-owned stations for the Super Bowl show. CBS, which is owned by Viacom Inc., is contesting the fine. Four years ago, FCC fines totaled just $48,000.

The FCC has wide latitude in imposing fines. For purposes of the Jackson case, the airing of the halftime show by each of the network-owned stations was considered a separate incident and each was fined the then-maximum $27,500. The FCC did not fine CBS stations that were merely network affiliates.

If Congress approves the huge jump in the maximum fine, it's possible that incidents like Jackson's could lead to fines in the millions or tens of millions of dollars.

Critics like shock jock Howard Stern say the FCC has gone too far in its crackdown and the government regulation amounts to a violation of the Constitution's free speech protection. Broadcasters say they are forced to guess at what constitutes indecency because the statute is so blurry. Because of the confusion and the fear of fines, some have become ultracareful.

For instance, several ABC affiliates last year did not air the World War II drama "Saving Private Ryan" over worries that violence and profanity would lead to fines, even though the movie already had aired on network TV. ABC is owned by The Walt Disney Co.

"The media, looking at the bottom line, do not like to be subject to the extreme FCC fines," said Paul Levinson, chair of Fordham University's Communication and Media Studies Department. "In many ways, they are censoring themselves and that's the most tragic thing of all."

The indecency law bars nonsatellite radio and noncable television stations from airing – between 6 a.m. and 10 p.m. – indecent material such as references to sexual and excretory functions. Those are the hours when children are more likely to be watching TV.

But not all sexual and excretory references are indecent. The FCC must consider context and its decisions are subjective interpretations of the law.

The National Football League is taking no chances at this weekend's Super Bowl. Former Beatle Paul McCartney highlights the halftime show, and his every word and move will be reviewed by the league.

President Bush has indicated support for continued FCC enforcement but also alluded to the difficulty in determining what should be considered a violation.

In an interview on C-SPAN last week he said parents are "the first line of responsibility" when it came to what their children listen to and watch. But he said government should "at times, not censor, but call to account programming that gets over the line. The problem of course, is the definition 'over the line.'"

Lara Mahaney, a vice president of the watchdog group, Parents Television Council, said she believes there is vast public support for tougher indecency fines.

"There has to be a financial hit" to persuade programmers to keep indecency off the air, she said. "That's the thing with breaking the law: It's got to hurt."

from money.cnn.com
January 27, 2005

Life without Stern isn't looking pretty

Radio stations that dropped the ribald radio star a year ago have seen ratings plummet.

NEW YORK (CNN/Money) - A year ago, Pittsburgh radio station WXDX-FM was near the top of its game on weekday mornings. Today it's fighting hard for listeners.

What changed? Two words: Howard Stern.

A year ago next month, WXDX and five other stations owned by Clear Channel pulled the shock jock off the air in response to a government backlash against smutty programming. For Clear Channel, the country's largest radio operator, the risk of losing valuable licenses to keep Stern on the air wasn't worth it.

But the Clear Channel radio stations have since paid a steep price. All six have lost a significant number of weekday morning listeners, according to new data from Arbitron, the country's top radio ratings service.

Arbitron tracks radio listeners by quarter and its latest available data, released this week, show that WXDX ratings during the morning hours have fallen by more than half from the ratings period before Stern was kicked off the air to mid-December. Third in the market a year ago, the station now ranks No. 11 during Stern's former 6 to 10 a.m. time slot.

Similarly, WTKS-FM in Orlando, Fla. has dropped from No. 2 to No. 8 and WNVE in Rochester, N.Y. has slid from sixth to fourteenth place on a ratings freefall. Once No. 5, San Diego, Calif.'s KIOZ is now tied for 20th place.

The lost market share only shows that Stern, love him or hate him, is "one of the biggest radio attractions in the modern era," said Michael Harrison, the publisher of Talkers, a monthly radio talk show trade magazine. "He's a phenomenon."

One loses, the other gains

Ratings are important because they are used throughout the entertainment industry to establish advertising rates, which, in turn, affect revenues. For Clear Channel, the loss is minimal given that it owns more than 1,200 radio stations.

But the listener losses point to the big challenges confronting No. 2 radio station operator Infinity Broadcasting as it braces for Stern's much-publicized exit later this year. Stern said in October that he would join Sirius Satellite Radio, a subscription-based radio service, early next year in a five-year deal valued at $500 million.

In announcing the move, Stern expressed frustration with the indecency crackdown that led to his firing from Clear Channel and was putting pressure on Infinity, a Viacom subsidiary, to tone down his salacious show.

Stern, according to some industry analysts, has been a huge revenue generator for Infinity and the 27 stations that air his show.

Indeed, when Infinity added Stern to four stations in New York, California and Florida last summer, ratings jumped. In the Orlando market, Infinity's WOCL, for instance, has since shot from No. 17 on the eve of Stern's addition to No. 1, according to Arbitron. San Diego's KPLN is now ranked fourth, up from No. 17 before. Stations in Rochester and West Palm Beach also posted solid, albeit less dramatic, gains.

Infinity added Stern to five other markets last year, but Arbitron ratings data for them were not readily available.

An aspiring Stern, without the smut

Stern's looming exit from terrestrial radio has led to many grim -- arguably overblown -- predictions about what it portends for the future of free AM-FM radio. Radio operators have struggled to attract marketers amid a broader advertising rebound, but analysts agree that the industry's problems are bigger than Stern.

Infinity, however, is looking at a large revenue hole without Stern. While the company is publicly mum about its post-Stern plans, Infinity CEO Joel Hollander suggested in December that the company doesn't lack for interest among celebrities and other wannabe successors.

One name floating in industry circles is Erich "Mancow" Muller, a Chicago radio personality whose "Mancow Morning Madness" is headed for syndication. Mancow, himself a former shock jock, is now trying to position himself as Stern's heir apparent, but without the obscenity.

"He's taking it to the edge without going over the edge" and putting station licenses at risk, said Harrison.

Harrison thinks Mancow has a shot at replacing Stern, but not anytime soon. As Clear Channel and Infinity have both been reminded his year, wherever Stern goes the ratings quickly follow.

"If someone had come along and instantly maintained the ratings that Howard Stern had, that would have been looked at as the second coming of Christ," joked Harrison.

from Yahoo.com

FCC Chairman Powell to Step Down in March

By GENARO C. ARMAS
Associated Press Writer

WASHINGTON - Michael K. Powell has tackled thorny issues involving media ownership rules, phone competition and the Internet as the nation's top communications regulator, but a "wardrobe malfunction" got him the most attention.

Powell announced Friday that he will step down in March as chairman of the Federal Communications Commission, culminating a four-year tenure in which the Republican-controlled agency championed a generally pro-business agenda and dramatically stepped up enforcement of broadcast indecency standards.

Powell's departure had been expected, though the timing was a surprise. In an interview, Powell said he reached his decision over the holidays and looked forward to vacationing with his wife and two sons, aged 16 and 10.

Powell may be best known by the public because of the FCC's harsh response to Janet Jackson's "wardrobe malfunction" during last year's Super Bowl halftime show. But Powell said he's proud of his efforts to promote new technologies like high-speed Internet access and digital TVs.

"Our principal passion is that we believed we should work hard to get the law right to stimulate innovative technologies that put more power into the hands of consumers," said Powell, son of Secretary of State Colin Powell, who also is leaving his job. "I felt very comfortable that we achieved most of what we set out to do."

White House spokeswoman Erin Healy praised Powell for a "strong commitment to expand the reach of new communications technologies and services" that promoted President Bush's goal of affordable high-speed Internet access for all Americans by 2007.

Though he clashed often with the two Democrats on the FCC, all five commissioners have been united in seeking harsher penalties for violations of broadcast indecency standards.

The FCC received more than 1 million indecency complaints in 2004, most of them involving the exposure of Jackson's breast during her performance. Fines for indecent programming exceeded $7.7 million last year, a huge increase from the $48,000 imposed the year before Powell became chairman.

As a result, programmers have become more skittish about what may or may not be construed as too racy. Some networks have started using a broadcast delay on live programs to catch any offensive material before it aired. Last year, 66 ABC affiliates decided not to air the movie "Saving Private Ryan" on Veterans Day over similar fears.

Critics of the FCC's crackdown, from academics to shock jock Howard Stern, accuse Powell and the FCC of stifling free speech. Stern, who has accumulated more fines than anyone else, decided to switch next year to satellite radio, which is not subject to the indecency standards because listeners pay for the service.

Paul Levinson, chair of the Communication and Media Studies Department at Fordham University and a frequent Powell critic, said the indecency crackdown is misguided.

"What we need is an FCC to go to Congress and tell them that First Amendment rights are there to protect what people don't like," Levinson said.

Powell said the FCC's stepped-up enforcement was in response to growing complaints from the public and lawmakers that broadcasts had become too raunchy.

Lara Mahaney, spokeswoman for the Parents Television Council, which frequently complains about sex and violence on television, said Powell should have acted long before the Janet Jackson incident.

"In regards to indecency, we give him an F," Mahaney said of Powell.

The FCC has five members, and the party in power at the White House holds three seats. Powell was nominated by former President Clinton to a Republican spot on the then-Democratic dominated commission in 1997. Bush made him chairman in 2001.

Among other controversial issues Powell tackled as chairman was a revision of decades-old rules governing ownership of newspapers and television and radio stations. The commission approved changes in 2003 that allow individual companies to own TV stations reaching nearly half the nation's viewers and combinations of newspapers and broadcast outlets in the same community.

The changes were favored by major media companies, but Congress and the courts are considering several efforts to modify or repeal the rules.

Last month, the commission made yet another attempt to promote local phone competition. Three previous efforts have been thrown out by federal courts.

There was no immediate word on a successor. Possible replacements include Republican Commissioner Kevin Martin, who would not need Senate confirmation to become chairman because he already is on the FCC.

An aide to Sen. Ted Stevens, R-Alaska, chairman of the Senate Commerce Committee, said Stevens has recommended to Bush that a former Stevens adviser, Washington attorney Earl Comstock, be nominated to the commission. But Stevens' office said there have been no discussions with the White House about who should assume the chairmanship.

Other names being mentioned include former Texas utilities regulator Rebecca Armendariz Klein and former chairman of the Federal Energy Regulatory Commission Pat Wood.

from USA Today

Stern: Serious doings on and off the air

"My gut instinct tells me this is big with or without me. It's the first time that somebody who makes major money in broadcasting is walking away," Stern says of his gamble on satellite radio. By Robert Deutsch, USA TODAY

NEW YORK -- For someone who has been talking endlessly on the air about how federal communications regulators have forced him from his home of 20 years, Howard Stern seems pretty content.

America's most famous shock jock, who moves to Sirius Satellite Radio in 13 months, has been reading the Bible. With all this talk about how the country is into religion and morality, Stern, 50, figures it was time to read The Good Book.

Of course, he hasn't gotten past Genesis, and he has problems with the part about God creating night and day. Too obvious. But he doesn't want to be too critical. "I'm always afraid to say anything about God. What if there is a God?"

Stern's other passions include psychotherapy, his three daughters, girlfriend Beth Ostrosky and Bianca Romijn-Stamos, an English bulldog he named after a stripper and the supermodel. "Bulldogs are so ugly that I had to give her the most feminine name I could find."

Stern talks about these subjects over the course of 90 minutes in an empty basement banquet room of a West Side restaurant owned by a friend, his gigantic black SUV stretch limo parked outside on this cold, misty day.

Stern, who rarely grants interviews, has requested this one specifically to plug Sirius on the heels of The Wall Street Journal's prediction that the new radio service could repeat the boom-and-bust cycle of the Internet, an article that has caused some investor uneasiness.

Stern gets right to the point. He's urging fans to buy Sirius subscriptions at $12.95 a month for friends and family for Christmas, just as he has for 250 people on his holiday list. Better yet, he says, sign up for a full year so that when he arrives on Jan. 1, 2006, with a live, four-hour weekday show, his loyal fan base will be there.

So this is a sales pitch? Absolutely. "I'm blatant about it," he says.

Stern says he's concerned that fans won't follow him to Sirius, either because they'll refuse to pay or because they're so confused about how satellite radio works that they'll stick with traditional commercial radio. (He has even laid out all the how-tos on his Web site, howardstern.com.)

Even though he now has 9 million morning drive-time fans, Stern knows something about listener fickleness from his famous firing by NBC in 1985. "Everyone said, 'Oh, there's going to be such an uproar.' But life goes on the very next day, and everyone finds another radio show."

As for paying for radio, Stern says that once listeners get used to the range of Sirius' programming, they'll stick with it: more than 100 channels, from talk shows to commercial-free music such as an all-Elvis channel and another by Eminem. Just as cable TV took a while to catch on, so too will satellite radio, he says.

A gamble for 'The King'

Still, this is a big risk for the King of All Media, a moniker he cooked up as a gag some years ago. But this new venture is no joke: Stern could be swept into the dustbin of radio history if Sirius tanks.

"That would bother me. I would hate to be wrong," he says. "But I think I am right. My gut instinct tells me this is big with or without me. It's the first time that somebody with a major career who makes major money in broadcasting is walking away.

"My role in the history of radio will be that I accelerated the push to satellite. I don't think this is the death of regular radio. It'll be there the same way network television is there."

At Sirius, just like at HBO, Stern can do whatever he wants without some station manager freaking out about how listeners, advertisers, activists and an increasingly vigilant Federal Communications Commission might react.

Soundtracks from gay porno films? No problem. Four-letter words? Absolutely. Replay that old interview with the late comedian Sam Kinison? Go for it.

"I guarantee I will reinvent myself, because I can go further than I have ever gone," Stern says. "I can explore anything I want to. You can't reinvent yourself if you've got the government breathing down your neck."

But without any sexual envelope to push, without the threat of fines and censorship, could his raunchy act get old quickly on satellite?

"In all fairness, I do a five-hour show now, and if you added up all the minutes, maybe 40 have to do with sex. What's selling is not sex; it's honesty, and there's no honesty in the country. People aren't really honest, especially when it comes to sex."

He doesn't like the puritanical shift in America: the FCC fining Viacom because Janet Jackson bared her breast at the Super Bowl and ABC stations recently pulling Saving Private Ryan rather than face possible sanction from the FCC over language and violence.

"I understand that there are people who listen to what I think is funny or interesting and say it's horrible and the worst side of life. I don't see it that way," Stern says.

"I'm interested in all sides of life, and a lot of our show is about the news and politics. There's a great rebelliousness there and a questioning of authority. Some people are very threatened by that, as if this is going to lead to the destruction of a society.

"I say it's just the opposite. Just because you don't like something, should it be taken off the air or would you rather govern yourself and turn it off?"

With a year to go on his Viacom contract, Stern's plug for Sirius is understandable. He has to build interest. Viacom also has asked him to stop peddling the fledgling subscription radio service on its dime.

Although his show will have commercials, Stern says, "once you start listening to music that is programmed well by live, breathing disc jockeys, you won't ever leave. It's 120 radio stations under one roof. It's wild."

Sirius, with 900,000 listeners, says it needs Stern to draw 1 million more to justify the $100 million a year it'll cost to build a studio and pay him and his crew. Competitor XM has 2.5 million subscribers.

'Better parent' through therapy

Commercial pressures aside, he's happier now than he has been in years. "I feel like I'm in my prime. I've never felt more creative."

He began therapy after his divorce in 2001 and now goes four days a week.

"I wanted to be a better parent, to be closer to my kids," he says. "I also felt generally unhappy that no matter what I did, I didn't feel like a success. I'd look out and see 25,000 people waiting on line to get their book signed by me, and I'd think, 'Oh my God, what am I going to do tomorrow?' "

His former wife, Alison, has remarried. "We genuinely like each other," says Stern, who wrote extensively about their relationship in the best seller Private Parts, which was made into a movie. "I think I was in full-blown denial about our problems. I thought I had it all together.

"It's sad that it ended. It still pains me."

Of the movie, he says, "I was being honest, but I feel like a hypocrite now because I was saying, 'Hey, look how great my marriage was,' and now I'm divorced. But stuff happens. When I was younger I was a lot more judgmental, and now I'm a lot more understanding. You better be damn well sure that you don't take your marriage for granted, because it could fall apart."

He has no plans to remarry. He's not sure he believes in marriage anymore, but he says: "I am committed to Beth. We have a great relationship. I think if I say I don't want to get married it means I don't love Beth. I do love Beth. I can't tell you all the ways she has been good to me. She has opened me up and made my life great."

Stern says Beth, a model, and his daughters -- college students Emily, 20, and Deborah, 17, and 11-year-old Ashley -- have a good relationship. "I spend time with my kids, and it's got to be difficult for Beth to have my attention taken away. All this divorce stuff is complicated."

More time for the good things

In addition to working on programming for three Sirius channels, he's writing a series for Spike TV called Howard Stern: The Teenage Years ("tons of masturbation"), working on remakes of Porky's Revenge and Rock 'n' Roll High School and taking a Franklin Covey time-management course. "I'm trying to figure out how to create more time in my life."

He loves walking Bianca in Central Park, which his apartment overlooks. After many years of commuting from Long Island, he considers Manhattan his home. He is passionate about New Yorkers, who "think outside the box. If we could put Manhattan -- with all its creative people and dynamic things -- in Iraq, we wouldn't have that mess over there."

Stern gives to charities "depending on the year and what I'm feeling close to. . . . I care about the blind. I have a hang-up about that. Cancer. Some friends of mine have had some bad times."

He also has set up a scholarship at his alma mater, Boston University, after years of giving nothing. Therapy helped him remember a humanities professor there, Jim Wilcox, who encouraged him during his early years at the school. "Whatever moves you," he says. "Everyone should give to charity."

As for the future, "I guess in five years it'll probably be time for me to get off the air, but we'll see."

He came close to quitting radio because of the FCC. "I'm telling you: I thought I was getting out. I thought I was done.

"But now I feel like I'm a guy starting out in a way. I've learned that I need people around me. After 20 years, my fans are my family. And I'm saying to my audience: If you trust me, this is going to be the greatest. I'm going to give you great programming."

from CBS.Marketwatch.com
December 15, 2004

FCC: Indecency OK on satellite radio

SAN FRANCISCO (CBS.MW) -- The Federal Communications Commission said Thursday that its broadcast indecency rules do not apply to satellite radio services, paving the way for shock jock Howard Stern to say whatever he wants when he moves to Sirius Satellite Radio in 2006.

Saul Levine, president of Southern California-based Mount Wilson FM Broadcasters, had filed a petition for rulemaking with the commission, asking that it apply broadcast indecency rules to satellite radio.

In a letter to Levine dated Thursday, Ken Ferree, the chief of the commission's Media Bureau, said that the FCC had previously ruled that "subscription-based services do not call into play the issue of decency."

Ferree added that the commission's ruling is consistent with court decisions affirming that indecency is an issue in media that offer "indiscriminate access" to children.

He cited cases dating all the way back to FCC v. Pacifica Foundation, the landmark 1978 Supreme Court decision that gave the commission authority to regulate language used on the public airwaves. That case stemmed from a complaint about a broadcast of comedian George Carlin's "Seven Filthy Words" monologue.

Stern, one of the top-rated talents in radio for more than two decades, is under contract to Viacom's Infinity radio division, where his contract runs out at the end of 2005. After that deal expires, he'll head to Sirius. (Viacom is a significant shareholder in MarketWatch Inc., the publisher of this report.)

Stern's show has led to FCC fines on several occasions, most recently in April when the Clear Channel network was fined $495,000 for a Stern broadcast.

Sirius rival XM Satellite Radio has edgy hosts of its own, such as Opie & Anthony, who recently joined the company's programming lineup. The New York radio personalities were fired for a 2002 stunt in which they held a contest that encouraged people to have sex in St. Patrick's Cathedral.

Shares of Sirius declined 30 cents to close at $7.65 on Wednesday, while XM advanced 34 cents to $39.51.

David B. Wilkerson is a reporter for CBS.MarketWatch.com in San Francisco.

from Yahoo News
November 26, 2004

Satellite Radio May Not Escape FCC Restrictions

NEW YORK (Billboard) - With envelope-pushing air talent like Howard Stern and Opie & Anthony flocking to the less-restricted refuge of satellite radio, could the Federal Communications Commission (news - web sites) be far behind?

Specifically, could the FCC (news - web sites) enforce its indecency rules -- which Stern claims drove him away from terrestrial radio -- on satellite radio too?

That's exactly what Saul Levine is hoping for. On Oct. 29, Levine, the president of Mt. Wilson FM Broadcasters, filed a Petition for Rulemaking to amend Part 25 of the FCC's pending satellite radio rules to include an indecency provision.

While legal experts say subscription radio enjoys deeper First Amendment protections than free radio, Levine's petition argues that the FCC is, in fact, empowered to enforce indecency rules on satellite radio and asks the commission to "level (the) playing field."

Why is Levine convinced the FCC has such power when the satellite radio industry -- which is incurring millions of dollars in new losses to hire indecency's biggest offenders -- is not?

RULES OF THE GAME

According to Levine's petition, the FCC already has subjected satellite radio to Equal Employment Opportunity and political broadcasting rules and policies. What's more, the petition says, the type of radio service (i.e., broadcast, common carrier, etc.) "is not a relevant consideration" in the imposition of programing or public-interest rules, nor is whether satellite radio operates as a broadcast or subscription service. In fact, the FCC put satcasters on notice in 1997 that it "may adopt additional public-interest requirements at a later date."

Levine -- the owner of KUSR-AM Beverly Hills, Calif.; KTIM-AM Piedmont, Calif.; and classical KMZT-FM Los Angeles -- also contends that satellite radio is subject to Title 18 of the U.S. Code, Section 1464, which prohibits broadcasting indecent material between the hours of 6 a.m. and 10 p.m.

Bolstering his case is the fact that some spectrum that satellite operators use was granted without an auction, placing it in the province of the public airwaves. Since that slice of spectrum was borrowed, not bought, it belongs to the people and, the argument goes, the FCC can attach indecency regulations to it.

Andrew Schwartzman of the Media Access Project agrees that the FCC has the authority to apply the indecency statute to satellite. But, he adds, "to do it, they would have to change their own current rules, and I'm not so sure they would do it on their own, without pressure from Congress.

"The Communications Act defines subscription service broadcasting differently than broadcasting," Schwartzman says. "The FCC has the power to change that. ... (Whether it would) hold up in court is another matter."

POWER OF PERSUASION?

John Crigler, a communications attorney with Garvey, Schubert & Barer, says Levine's argument "won't be enough to persuade the FCC that it nevertheless should exercise that authority."

The FCC, Crigler notes, has all kinds of latent authority. For example, it has had jurisdiction to regulate indecency and profanity since passage of the Communications Act of 1934 but did not act on indecency until the 1970s and did not declare any broadcast profane until this year's controversial decision regarding U2 singer Bono uttering an expletive during the 2003 Golden Globe Awards (news - web sites).

The issue is "not whether or not the commission might have this latent authority but whether or not there is enough political impetus at this point to exercise that authority," Crigler says.

Were the FCC, at the behest of Congress, to extend indecency enforcement to satellite radio, it may be inconsistent with the Constitution.

"It's the First Amendment that is the more severe limitation on what the FCC can do," Crigler says.

WE THE PEOPLE

Squaring indecency restrictions on subscription radio with the First Amendment could be difficult. When the Supreme Court upheld the FCC's power to regulate indecency in the landmark Pacifica case of the 1970s, it cited the "pervasive" nature of free, over-the-air broadcasting to justify its ruling.

But the "pervasiveness" argument breaks down when talking about satellite radio, a Senate staffer familiar with the issue says.

"Satellite radio is a paid service," the staffer says. "You elect to have it, you elect to buy it and you elect to turn it on. It's something that you choose."

First Amendment attorney and former FCC counsel Bob Corn-Revere, who wrote the recent Viacom reply brief in the indecency case over the Janet Jackson (news) incident at the Super Bowl, agrees that it would be difficult for the FCC to act on indecency in the satellite realm. "The FCC doesn't have the authority to write unconstitutional rules," Corn-Revere says.

from msnbc.com
November 22, 2004

Stern sidekick Robin Quivers signs TV deal

Plans to develop a syndicated talk show

LOS ANGELES - Robin Quivers, shock jock Howard Stern’s longtime sidekick, is making a solo move toward television.

Quivers has signed a deal with Sony Pictures Television to develop a syndicated talk show for daytime TV, the company announced Monday.

The potential series could debut by fall 2005. Quivers will continue her work on Stern’s radio show while developing her TV show, Sony said.

There was no indication whether she planned to remain with Stern if her show gets a green light. A call to her manager in New York was not immediately returned Monday.

Quivers, a former nurse in the Air Force who achieved the rank of captain, began her radio career in Washington, D.C., in 1980 and teamed with Stern the next year.

In October, Stern announced a deal with Sirius Satellite Radio to move his program in January 2006 from traditional broadcasting to satellite distribution — and away from regulation.

Stern’s raunchy radio show has brought repeated fines over the years. The FCC cracked down harder on indecent broadcasting following Janet Jackson’s racy Super Bowl display last February.

from CNN Money

Ex-Viacom president to head Sirius

Mel Karmazin to join shock jock Howard Stern at satellite radio company; Sirius stock soars.

NEW YORK (CNN/Money) - Former Viacom president Mel Karmazin is joining Sirius Satellite Radio as chief executive officer.

A Sirius spokesman confirmed the hiring Thursday, after the story was first reported on AdAge.com.

Sirius (down $0.23 to $4.72, Research) shares soared 22.6 percent on the news after the bell to trade at $5.69.

Karmazin's name has been mentioned in connection with Sirius ever since the satellite radio company signed radio personality Howard Stern to a five-year, $500 million deal last month.

Karmazin has worked closely with Stern in the past and has often defended the shock jock.

Although Stern is under contract with Viacom's Infinity Radio until 2006, he has been laying the groundwork for his shift into satellite radio. Tuesday Stern handed out hundreds of free Sirius radios, and vouchers for thousands more, to fans in Manhattan's Union Square.

Karmazin was a key player in the successful integration of CBS Corp. into Viacom in 2000, as well as in the acquisition of his Infinity Broadcasting by CBS in 1996.

Since leaving Viacom in May, Karmazin has been mentioned as a possible successor to Walt Disney's Michael Eisner, although just last week Karmazin said his future involved linking up with an investment company, joining a high-growth company or doing nothing.

from Yahoo News

Sirius Names Karmazin CEO, Shares Jump

By Sue Zeidler

LOS ANGELES (Reuters) - Sirius Satellite Radio Inc. (Nasdaq:SIRI - news) on Thursday named former Viacom Inc. President Mel Karmazin as its chief executive, in the latest migration of a mainstream radio heavyweight to the fledgling satellite industry.

New York-based Sirius said current CEO Joseph Clayton would remain chairman as radio veteran Karmazin takes the helm of a company already buoyed by its recent deal to bring aboard one of Karmazin's biggest former talents at Viacom, ribald radio host Howard Stern.

Karmazin, who was Stern's longtime benefactor and supporter at Viacom, left his post as president and chief operating officer of Viacom in June in a management shake-up of the media conglomerate.

Shares of Sirius rose over 20 percent in after-hours trade on Karmazin's appointment, hitting $5.75 from a Nasdaq close of $4.72.

Analysts hailed the appointment, particularly due to recent concerns about Sirius' heavy spending for promotion and content deals, including its $500 million agreement with Stern.

"We think Karmazin is an outstanding leader and exactly what Sirius needed. Karmazin keeps a keen eye on expenses, and he's also an outstanding salesman and promoter," said Kit Spring, analyst with Stifel, Nicolaus and Co. Inc.

Stern is due to quit Viacom Inc.'s (NYSE:VIAB - news) Infinity Broadcasting and move his daily radio program to Sirius in January 2006, though speculation has persisted for weeks that his Viacom contract may be bought out sooner.

During an interview, Karmazin said he believed Sirius would not want to interfere with Stern's obligation.

"As I understand it, he has a contract with Viacom that goes through the end of 2005 and we certainly would not interfere with a contractual relationship. We think contracts are made to be honored," Karmazin told Reuters.

DREAM TEAM

Karmazin, who got his start in radio ad sales, said he was contacted by Sirius' board about joining the company about a week after Stern's announcement on Oct. 6.

"This is the dream team getting back together. Stern and Karmazin were incredibly successful at Infinity and can help give Sirius market momentum," Spring added. "He's going to drive the company's ability to promote Sirius -- the one thing Sirius suffers is a lack of brand awareness."

Indeed, Karmazin's appointment came as Stern went on a promotional blitz for Sirius, handing out free subscriptions at a rally in New York and appearing on the CBS "Late Show with David Letterman" to explain his upcoming move as having grown out of frustrations over censorship of his current show.

"My show is like Swiss cheese when I'm done with it every day," Stern said. "I don't even know how people listen any more."

Karmazin built one of the nation's top radio chains, ran CBS and then became a Wall Street media darling due to his dedication to shareholder value.

He was once the designated successor to Viacom CEO Sumner Redstone, but in March 2003, he signed a new contract that stripped him of automatic succession to CEO and gave Redstone more operational control and authority to overrule Karmazin.

Karmazin was lately considered a would-be candidate to succeed Walt Disney Co.'s (NYSE:DIS - news) CEO Michael Eisner, but on Thursday, he said that Sirius was a natural fit.

Karmazin said he planned to buy an undisclosed amount of Sirius shares. "This company is heading in the right direction. We're going to reduce the subscriber acquisition costs, work more with the automotive industry, generate more revenue and generate a ton of profits," Karmazin said.

from the Wall St. Journal
November 12, 2004

Shock Jock Stern Seeks Early Exit From Viacom Deal

It is beginning to look like shock jock Howard Stern's transition from broadcast radio to an upstart satellite service will be anything but smooth, prompting Mr. Stern to explore whether he can make the leap earlier than expected.

With a little more than a year until Mr. Stern jumps to Sirius Satellite Radio Inc. from Viacom Inc.'s Infinity Broadcasting, the popular radio host has gone on the warpath against his current employer.

The issue is that Viacom has withdrawn its financial support from Mr. Stern's legal fight against Clear Channel Communication Inc., which dropped his show earlier this year after the Federal Communications Commission began a crackdown on indecent broadcasts.

The about-face has infuriated Mr. Stern, who has lambasted Infinity management on the air during his past few shows, but without mentioning the legal issue at the root of the squabble. People close to Infinity say that because Mr. Stern was secretly negotiating with Sirius while enlisting the support of Infinity's legal team in a suit against Clear Channel, Infinity no longer feels compelled to back him. Spokesmen for Infinity and Sirius declined to comment; Mr. Stern's agent couldn't be reached.

Mr. Stern is negotiating to get out of his contract with Infinity so he can join Sirius earlier than the 2006 date currently planned. Mr. Stern announced his planned move to Sirius last month, live on his show. Sirius likely would have to pay a steep price to land Mr. Stern early; he brings in some $80 million annually in advertising revenue and $50 million annually in cash flow to Infinity, according to people familiar with the matter.

Mr. Stern's rants have led some close to the situation to believe that he is trying to goad Infinity into taking him off the air, which the company doesn't want to do unless Sirius ponies up to buy out his contract.

At the end of June, Infinity and Mr. Stern filed a $10 million breach-of-contract suit against Clear Channel for dropping Mr. Stern's show earlier in the year. In July, Clear Channel countersued for $3 million, alleging Mr. Stern broke his contract with the company by not conforming to federal decency standards.

from CNN.com

Howard Stern: I may be out soon

Shock jock expresses dismay over treatment at Infinity, says an early contract buyout is possible.

NEW YORK (CNN/Money) - Howard Stern, the king of shock radio, complained on his morning program Thursday about his deteriorating relationship with his current employer and said he may leave the broadcaster soon.

Stern announced last month that he will quit public radio once his contract with Infinity Broadcasting, the Viacom unit that distributes his talk radio show, expires next year.

Instead, Stern said he would join Sirius Satellite Radio, a leading subscription-based radio service. Stern and Sirius (down $0.09 to $3.77, Research) signed a five-year deal valued at $500 million, including salaries and all costs associated with producing The Howard Stern Show.

Stern was expected to continue his morning public radio show, which is broadcast in 45 markets, 27 of which are Infinity-owned.

But now that may not happen.

At the time of his announcement, Stern emphasized that his decision to leave Infinity was not borne out of an ill-will for the company that gave him his big shot at stardom some two decades ago. Rather, Stern said he was fed up with the current climate in Washington D.C. that has regulators cracking down hard on broadcasters that air programming considered obscene or offensive.

Sirius, with more than 700,000 subscribers, and XM Satellite Radio Holdings (down $0.22 to $33.62, Research), with 2.5 million subscribers, dominate satellite radio which, like cable television, is largely unregulated.

Since his blockbuster announcement, however, Stern has openly touted the benefits of satellite over public radio. And that, according to Michael Harrison, the publisher of Talkers magazine, is at the heart of Stern's comment that he's been flooded with letters from company lawyers and may leave Infinity much sooner than expected.

"Some of the things he's been saying on the air about terrestrial (public) radio and his promoting of satellite radio has created some strained relationships and ruffled feathers," said Harrison.

Good riddance?

Stern confirmed Thursday that the possibility that Sirius would buy out his Infinity contract now "might end up happening." But he reiterated that he's not upset with Infinity.

"I'm not angry," he said. "I needed a different future. I needed change."

Speaking to his Infinity bosses, Stern said: "You seem overly hurt by all of this."

An Infinity spokeswoman declined comment.

Viacom co-president Les Moonves, however, indicated recently that the company was not sorry to see Stern go to satellite.

"It was clearly a natural thing for him to do," said Moonves during an analyst conference call two weeks ago to discuss Viacom (up $0.07 to $35.65, Research) earnings. In addition Stern, well-known radio personalities Bob Edwards, formerly of National Public Radio, and "Opie & Anthony" hosts Gregg Hughes and Anthony Cumia have moved to satellite radio.

Moonves, in his speech to analysts, suggested too that Stern has not been a big moneymaker for Viacom. "We'll replace (Stern's show) with programming we think can be more profitable in the future," said Moonves.

This isn't the only business relationship that has turned sour for Stern in recent months.

Earlier this year Clear Channel Communications, the country's biggest radio operator, yanked Stern from the six stations that aired his show in the wake of a public outcry over the national broadcast of Janet Jackson's bare breast during a live Super Bowl performance.

In June Clear Channel (down $0.25 to $33.64, Research) agreed to pay a record $1.75 million fine stemming from a 2003 Stern show in which cast members discussed anal sex at length.

Clear Channel and Stern are now fighting in court over their split. Stern claims Clear Channel violated their contract when it fired him. Clear Channel counters that their deal called on Infinity and Stern's company, One Twelve, to abide by government regulations. Clear Channel is seeking the ad revenues that it says it lost when Stern's show was pulled.

Harrison, of Talkers magazine, cautioned that Stern's comments Thursday about exiting Infinity now could be a publicity stunt.

"Remember, talk radio is show business and it's not considered a breaking of the rules to play the show-business angle," said Harrison. And Stern has proven especially adept over the years at drawing attention.

Indeed, even as Stern confirmed he may be on his way out, he made a point of telling listeners that he'll soon appear on the David Letterman Show, where planned to talk about his decision and the future of radio.

"In essence I'll be doing an infomercial," Stern said

from fmqb.com

Stern To Appear On Letterman

Howard Stern is taking his Sirius Satellite Radio pitch to Viacom's Late Show with David Letterman. Stern said this morning that he has confirmed an appearance for one week from today, Thursday, November 18. The appearance could not be confirmed with Late Show at the time of this report.

As for Stern's simmering relationship with Infinity, the NY Post says Stern wants out of his job now and it is looking more and more like those who picked an early date in the office pool for the end of Stern's morning show on terrestrial radio are going to be winners.

Stern's outright disgust for his Infinity superiors and the behind-the-scenes maneuvering that surrounds his waning tenure at Viacom's radio division is becoming more contemptuous. Stern started his show this morning by railing on Infinity President/COO Joel Hollander, calling him a "maggot" before WXRK/New York GM Tom Chiusano entered the studio to curb the conversation, telling Stern "this isn't the place to personalize it." The GM only made matters worse, as Stern said Hollander "screwed me yesterday" and was "no Mel Karmazin and is never going to be. He's not fit to fill his shoes. One thing about Mel, when he shook my hand, that was the deal." He later lamented, "My Mel is gone. It's time for me to leave."

Stern spent 30+ minutes on read-between-the-lines conversation with Chiusano, Robin Quivers and Artie Lange over the future of the show. "I put a lot of hours into this company," said Stern at one point. "Every one of my deals here has been pleasant and everyone here has been above board and honest with me. When a guy calls up my agent and says 'I don't care if we agreed to something, I'm going back on it.' That's ridiculous. Don't be a dishonest person with me. That's all I ask. I got screwed over my whole career by dishonest business men."

"I'm asking for two things," Stern pleaded. "Honor your agreements and, two, let's keep the show running. Keep it strong so that our advertisers have lots of listeners and everybody flourishes. If that's unreasonable, take me to the radio police."

Stern promised that what he couldn't talk about directly on his radio show, he would take to Letterman's show and discuss there. When Chiusano pointed out the appearance would still be on a Viacom property, Stern countered with "Letterman's no fan of Viacom, trust me. I've had private conversations with this guy." He wouldn't reveal the details of those talks but said Letterman's not a "happy camper for a bunch of different reasons."

from the NY Post

HOWARD WANTS OUT OF JOB NOW

November 11, 2004 -- HOWARD Stern — claiming he's being "jerked around" and "threatened" by his bosses — says he might start on satellite radio a lot sooner than Jan. 1, 2006.

"A buddy of mine who shall remain nameless says . . . Viacom is trying to get Sirius [Satellite Radio] to pay off my contract and then I would leave early 'cause Sirius is anxious to get the show started," Stern told listeners yesterday.

The top-rated bad boy — who shocked the radio world last month with the announcement he was quitting broadcast radio to take a big-money offer from satellite radio — has been sounding uncharacteristically depressed of late.

He says he's being peppered by "legal letters" and "threats" from Viacom lawyers.

And elsewhere around the country — Stern airs in 46 cities — his show is being heavily censored by Infinity, Viacom's radio unit.

"Jimmy Kimmel wrote me [that] they're trashing the show [in L.A.], cutting pieces out and putting in more commercials than ever," Stern said.

"I'm like, 'Dude, I'm so outta here, let 'em do whatever they want.'"

Stern even attacked the head of Infinity — dubbing him "Joel 'dangerously close to losing his position' Hollander" — and claimed Hollander is "busy meeting with lawyers [to] see if I violated my contract in some way.

"Hey, I had a contract with you and I honored it," Stern said.

"You want to pay off, let me know," he said. "You don't want to pay off, I'm here for the duration.

"But you don't have to be dickheads about it."

Stern is worth as much as $100 million to Infinity, but the company recently made it clear that it considers him only a small part of the Viacom media empire.

Infinity and Sirius declined comment, although Sirius CEO Joe Clayton told analysts last month that a contract buyout "is indeed a possibility."

Stern Confronts Powell On San Fran Airwaves

FCC Chairman Michael Powell was quizzed by an unlikely caller during an interview on KGO/San Francisco morning man Ronn Owen's show today when Howard Stern called in to the program.

Stern was on air for close to twenty minutes with Powell, initially asking the FCC chairman," Does it make you nervous to talk to me?" "It does not," Powell replied.

Stern then launched into Powell, suggesting he was not fit for the position and the only reason he was in it was due to his father. "How did you get your job? Do you deny your father got you this job?" asked Stern.

"I would deny it, exceedingly," said Powell. "You can look at my resume if you want. I'm not ashamed of it and I think it justifies my existence. I was Chief of Staff of the anti-trust division. I'm an attorney. I was a clerk on the court of the United States. I have the same credentials as virtually anyone who sits in my position does. I think it's a little unfair that because I happen to have a famous father and other public officials don't that you make an assumption that that's the only basis on which I serve in my position."

Stern didn't accept the answer, but turned his line of questioning to why the FCC is afraid to go to court over indecency definitions. "When will you allow this to go to court and stop practicing your form of racketeering that you do by making stations pay up or you hold back their license renewal?" asked Stern.

"First of all, that's flatly false," stated Powell. "There is no reason why Viacom or any other company who feels that they have been wrongly fined can't sue us in court. We have no basis what-so-ever to prevent them from going to court."

"That's a lie. I've lived through your fines, Michael," countered Stern, who pointed out that Mel Karmazin had personally told him that licenses were at risk if fines weren't paid. The two then volleyed back and forth over Janet Jackson and Oprah Winfrey before time was called and Owen had to break for commercials.

Stern got in one last thought, telling Powell, "I don't think that you personally hate me. I think what you have been doing is dangerous to free speech. I don't think just against me, I think things have gotten way out of control. I am not personally vindictive. I'm happy to be going to satellite radio on Sirius. I welcome the move. I think it is a sad day though when the marketplace no longer determines what is indecent. I think there is tremendous hypocrisy that you allow late at night on the radio with teenagers calling in to Lovelines talking about blatant sexual acts. There is a complete double standard here when it comes to me in morning radio when it is probably the only time of day that parents listen with their children."

Stern was gone from the line by the time Powell said, "Howard has an argument, but his argument is that there should be no limits on what he is able to do on the radio. If there are going to be limits, someone's going to have to define them and someone is going to have to enforce them."

from CNN.com
October 26, 2004

Stern challenges FCC chairman on air

"Let's face it. You got to the head of the FCC, you got to the front of the class the way George W. Bush got out of the draft -- and it's completely fair for me to question," Stern said.

The FCC chairman defended his credentials and snapped, "I think it's a cheap shot to say just because my father's famous, I don't belong in my position."

The exchange occurred during the morning show on San Francisco's KGO radio. Host Ronn Owens was interviewing Powell and was taking phone calls when Stern called.

Stern said a friend told him the commissioner was going to be on the show and he decided to call because Powell "consistently avoids me and avoids answering my questions."

"Does it make you nervous for you to talk to me?" Stern asked.

"No, it does not," Powell replied.

Moments later, Stern called Powell "an enigma" and said, "You're the judge, you're the arbiter, you're the one who tells us what we can and can't say on the air. And yet I really don't even think you're qualified to be the head of the commission. Do you deny that your father got you this job?"

"I would deny it exceedingly. You can look at my resume if you want, Howard. I'm not ashamed of it and I think it justifies my existence," said Powell, adding that he served as the chief of staff of the Justice Department's Antitrust Division and was a private attorney.

"If you don't believe the commission should have any rights to draw limits, I think that's a respectable position but it doesn't happen to be the law," he said.

After Stern expressed outrage over fines levied by the FCC against his show, Powell said the panel works to enforce fines fairly "regardless of the notoriety of the personality involved."

"You personalize it as if you're answering to me," Powell said. "You're answering to the commission -- if you're answering to anybody. All of these fines are voted by five members, Republicans and Democrats alike."

He added, "I don't think we've made any particular crusade of the Howard Stern Show or you."

"Yeah, OK, Michael," Stern replied. "That's why I've received the largest fines in history."

Toward the end of the phone call, Stern noted he had been "respectful" throughout the conversation and he hoped "there's no sort of retribution as a result of my phone call, which I believe Michael is capable of."

"I don't take this personally," Stern said. "I don't think that you personally hate me. I think what you've been doing is dangerous to free speech. I don't think just against me, I think things have gotten way out of control."

Before Stern hung up, Powell told him, "Good to talk to you."

Over the years, Stern has repeatedly been in government cross hairs over a show known for its explicit and salacious discussions about, for example, rough sex, masturbation and the virtues of slavery.

Earlier this year, the FCC fined Clear Channel $495,000 for Stern comments that were deemed indecent. Clear Channel then pulled Stern from six of the stations it owns.

Just three weeks ago, Stern announced he will take his morning radio show to satellite radio in large part to avoid the strict rules of the FCC.

Powell was appointed to the FCC by President Clinton and promoted to chairman by President Bush.

from CBS.MarketWatch.com

Stern's move opens up satellite radio

NEW YORK (CBS.NY) -- The news Wednesday that iconic shock jock Howard Stern is moving to satellite radio in 2006 will help unleash a flow of ideas that could threaten the stranglehold that traditional stations have had on the medium, industry observers said.

Stern's announcement is crucial because it's the most high-profile event in the brief history of satellite radio and it underscores the potential of pay-radio.

The satellite technology is expected to do for radio what cable did for television. Primarily, with the advent of cable, millions of people casually fork over money in the form of monthly fees instead of merely accepting the programming -- and inferior television picture -- that they get for free over network TV.

"As consumers are used to paying subscriptions for cable, satellite radio has (a) fertile territory," said James McGlynn, the manager of the Summit Everest fund in Cincinnati.

Stern will provide a steady stream of popular content for his listeners. But another crucial development will come when satellite radio invents a program that commands the loyal following of "The Sopranos" or "Sex and the City" or "Curb Your Enthusiasm."

A blockbuster program like one of those HBO favorites could quickly make satellite radio seem like a necessity, not merely a luxury, for a large group of consumers.

The possibilities seem endless to media experts.

"On satellite radio, anything can be vocalized," said Rich Hanley, director of graduate programs in the school of communications at Quinnipiac University in Hamden, Conn. "You could broadcast anything. You could have a station devoted to tuba music."

But large numbers of people, of course, aren't likely to pay hundreds of dollars a year to hear oom-pah-pah. Stern has shrewdly attracted a large and rabid following among the crucial advertising demographic base of young adults. Stern has brought the raunchy, comic atmosphere of a fraternity house or a locker room to their radios.

That programming's graphic and explicit language has drawn several Federal Communications Commission fines, which would not be part of the mix on paid radio.

Stern is heard by 10 million listeners a day in 45 markets over free-of-charge broadcasts. Still, he represents only the first wave of content that's going to be available over satellite radio.

"The listeners of satellite radio want comedy and sports and talk in particular -- stuff that appeals to guys," Hanley pointed out. "These are people who want to listen to the radio in the background and not have to listen with the seriousness of an FDR fireside chat."

Led by Stern, who signed a five-year deal worth $500 million, satellite radio will exploit what he has already accomplished. Stations will follow his lead by expanding the limits of the programming that radio has thrived on since the medium was invented.

Sirius has only 500 employers and generated revenue of a mere $12.9 million and a net loss of $226 million last year. But it's making progress. In 2002, it had revenue of $805,000 and a net loss of $422.5 million.

Listeners of Sirius Satellite Radio (SIRI: news, chart, profile) or XM Satellite Radio Holdings (XMSR: news, chart, profile) don't tune in to hear heretofore local-news staples.

"In a word," Hanley said, "these consumers want to be entertained. They aren't paying a lot of money a year to hear reports of weather forecasts and school closings. They can flip on the Internet and get that kind of local information."

Wall Street was clearly intrigued, too, by the potential of satellite radio. Thanks to Stern's news, Sirius shares gained 50 cents to $3.84. On Thursday, the stock was up 12 cents at $3.99. XM Satellite Radio was down 43 cents at $28.63.

Viacom's predicament

Potentially, Stern has left his employer, the Infinity company controlled by Viacom (VIAB: news, chart, profile), in a gigantic predicament. (Viacom is a significant investor in the publisher of this report.)

Not only must Viacom find a suitable replacement for him, but the massive company must also have to decide whether it wants to let Stern leave before his contract expires. Stern's gig on Sirius is to begin on Jan. 1, 2006.

But Viacom may decide it is more expedient to let him run free and not give the outspoken celebrity what amounts to an opportunity to spend the next 15 months promoting his new venture.

Stern, predictably, was full of bluster as he made his big announcement.

"This marks the death of AM and FM radio," he thundered on Wednesday. "I guarantee it."

"I love his ego," veteran media personality Sally Jessy Raphael, said Thursday morning on CNN.

Raphael suggested that many people, when push comes to shove, won't want to shell out the money to pay to listen to Stern on Sirius. She said people will ponder, "I love Howard Stern but am I going to love him enough for $150 a year?"

That's entertainment

Call it entertainment radio.

"What has traditionally been confined to the morning on the radio will now be expanded into round-the-clock entertainment," Hanley predicted. "Generally, satellite has been comedy and music. But you'll see more original entertainment programming on it."

As a result, traditional radio will have to make adjustments.

"Those stations will have to change their business models and start thinking in terms of a global audience, not a local one," Hanley suggested. "The old syndication model -- having one star syndicated across hundreds of markets -- doesn't work any more."

Hanley's point underscores the pressure that satellite radio is bringing to the old medium -- and shaking it up. Only a few years ago, the likes of Stern and fellow disc jockey Don Imus were hailed as pioneers when they signed syndication deals.

"Satellite thinks in terms of subscribers, not markets," Hanley said. "Radio will become global."

At the same time, companies like Sirius and XM are still in their infancy and it will take time to lodge a serious competitive threat.

"It is a two horse race with Sirius buying expensive content and XM getting installed in vehicles faster and easier. A third quasi competitor is iPod," McGlynn noted.

Might as well jump

Stern won't be the only radio celebrity to make the move to satellite.

You'll see more brand-name talent making this kind of move," Hanley said.

Satellite companies will be able to pay the big-ticket salaries because of the lucrative distribution possibilities on the horizon.

"It opens up a chance for people to combine satellite with Web distribution," Hanley said.

Satellite radio could produce far-reaching changes in businesses that have a peripheral but undeniable connection to the radio business.

"The new technology is going to help put more satellite radios in cars," Hanley said. "This is going to change advertising in auto marketing, too, as cars become equipped with satellite radios, further eroding the idea of syndication."

As the song goes, video killed the radio star. It remains to be seen how quickly satellite radio could endanger the traditional radio business. But the changes are coming -- and fast.

Jon Friedman is media editor for CBS.MarketWatch.com in New York.

from CNN/Money

Howard Stern jumps to satellite

Ending months of speculation, shock jock announces he's joining Sirius satellite radio in 2006.

NEW YORK (CNN/Money) - Howard Stern is taking his morning show to satellite radio -- a move sure to give the fledgling subscription radio business a huge shot in the arm.

Stern announced Wednesday that he'll join Sirius Satellite Radio in January 2006 in what is being billed as a five-year, multimillion dollar contract.

Calling satellite radio "the next big thing," Stern said on his morning show that commercial radio is no longer a safe haven for shock jocks like him.

"The Super Bowl did us in," said Stern, a reference to this year's half-time show when Janet Jackson exposed her breast during a live performance. Viacom-owned CBS, which broadcast the game, was fined $550,000 last week for the incident.

Stern's jump, rumored for months, is a big win for Sirius and a major setback to Infinity Broadcasting, also owned by Viacom (VIA: Research, Estimates), industry analysts said.

The decision also fostered talk about whether recent moves by Stern and other radio personalities, including former NPR host Bob Edwards, to satellite spelled the beginning of the end of traditional commercial radio.

"It's time to go," Stern said on his show, noting he hasn't been happy for a long time. "I believe more in satellite than I do in radio."

The Super Bowl episode touched off a public outcry about indecency on the airwaves and led Clear Channel Communications, the country's No. 1 radio operator, to pull the "Howard Stern Show" off the six stations that carried it.

It also led to renewed calls for news laws boosting fines for indecent programming to as much as $500,000 per violation, from $27,500. Congress is still considering whether to raise fines.

Stern suggested his announcement would be a surprise to officials at Infinity, which broadcasts his morning show in 46 markets.

In a brief statement, Infinity wished Stern well. "We at Infinity have enjoyed our years with Howard," read the two-sentence release. Stern's contract runs through the end of 2005 and he said he'll stay on Infinity stations until then.

Joins Opie & Anthony

Stern is not the only shock jock eyeing satellite radio, a subscription-based, commercial-free medium that, like cable television, is largely unregulated. On Monday, the "Opie & Anthony" show debuted on Sirius' larger rival, XM Satellite Radio.

The move by Gregg "Opie" Hughes and Anthony Cumia came two years after they were dumped by Infinity over a stunt in which they broadcast descriptions of listeners having sex in public places, including St. Patrick's Cathedral in New York.

Stern's announcement "splashes a little cold water on 'Opie & Anthony'," said Tom Taylor, editor of Inside Radio, a daily newsletter. For one thing, it forces fans of both shows to choose, since listeners wanting both shows would have to buy both services.

To get satellite radio, consumers can buy the hardware or a product such as a car that comes with it pre-installed. Sirius, with more than 600,000 subscribers, then charges $12.95 a month for access to 120 channels. XM subscribers, now numbering more than 2 million, pay $9.99 a month for about 120 channels and an additional $1.99 for the "Opie and Anthony" show.

Industry analysts said other, lower-profile shock jocks are also in talks with satellite operators, but warned that calls to regulate cable and satellite radio could grow, especially if Congress boosts indecency fines.

Sirius officials, however, were clearly jubilant.

"This is a watershed event for the industry," Sirius CEO Joseph Clayton said on an analyst call. He said it established satellite radio as the successor to FM, the way FM replaced AM radio years ago.

"Sirius Satellite Radio is where the excitement, creativity and energy that FM once had is gravitating to, today and tomorrow," he said, adding Stern was the most valuable name in radio today.

Sirius (SIRI: up $0.54 to $3.89, Research, Estimates) stock jumped 16 percent on the news while XM (XMSR: down $0.29 to $29.19, Research, Estimates) sank nearly 2 percent.

Radio's demise?

Some analysts disputed Clayton's claim that Stern's move spells the beginning of the end for traditional radio.

"There's no question in my mind that satellite radio will take its place in the evolution of radio and that Howard Stern is a catalyst for it happening faster," said Michael Harrison, publisher of Talkers, a magazine about radio talk shows. "But it's not going to replace FM or AM radio."

But luring Stern was a major, if costly, move for Sirius. The "Howard Stern Show" costs about $100 million a year, including salaries for Stern and his staff, according to Sirius data.

To break even, Clayton said Sirius would need to add a million subscribers, which he said should be easy to achieve.

"It's a good move for Sirius," said April Horace, an analyst with Janco Partners.

For Infinity, Stern's defection is a blow. Traditional radio has struggled with falling ad revenue. And Stern has made a bundle, not just for himself but also for Infinity. Analysts estimate Stern & Co. brings in some $25 million in annual profits for Infinity.

The split also marks the end of an era of sorts. Now 50 years old, Stern got his big break in radio in the mid-1980s when Mel Karmazin, then head of Infinity, hired Stern and helped turn him into a national celebrity.

Over the years, as Stern repeatedly ran into trouble for a show known for its explicit and salacious discussions about rough sex, masturbation and the virtues of slavery, Karmazin emerged as one of Stern's chief public defenders.

But Karmazin left Viacom in June after losing a succession battle. Given the backup Karmazin had given Stern and the current anti-smut climate on Capitol Hill, speculation talk was flying that Stern would leave Infinity once his current contract expired.

His sidekick, Robin Quivers, told Stern Wednesday that she saw this coming a long time ago.

"I saw how beaten down you were, how miserable you've been," said Quivers. "The last couple of years have been very difficult."

Responded Stern: "I've been so down, coming in here every day."

from Yahoo.com

Howard Stern Jumps to Satellite Radio

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 (NasdaqNM:SIRI - News) 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 (NYSE:VIAb - News) 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.(NasdaqNM:XMSR - News), 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.(NYSE:CCU - News), 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)

from Philly.com

Poll: Kerry takes Pa. lead Michael Moore, Howard Stern seem to be having impact

DEMOCRAT John Kerry leads President Bush by six points in Pennsylvania, and may get a bump from Howard Stern and Michael Moore, according to the latest Franklin & Marshall Daily News/CN8 Keystone Poll.

The results are a major turnaround from the March Keystone poll, which found Bush up by six points. The survey completed Sunday shows Kerry up 48 to 42 percent, with Ralph Nader picking up 3 percent and only 7 percent undecided.

A new Quinnipiac University poll shows Kerry up 47 to 42 percent, with Nader getting 4 percent.

The Keystone poll also shows incumbent Republican Sen. Arlen Specter with a commanding lead over Democratic challenger U.S. Rep. Joe Hoeffel, though Hoeffel has room to grow.

Specter is up 53 to 26 percent, with 19 percent undecided and 2 percent going to Constitution Party candidate Jim Clymer, the survey found. Hoeffel fared better in the Quinnipiac poll, trailing by 48 to 33 percent.

"This state is leaning toward Kerry, but it's still competitive," said Keystone Poll director Terry Madonna. "Bush needs to do better in the Philadelphia suburbs. But the main problem for the president in Pennsylvania is his low job-approval ratings."

Only 43 percent of those surveyed said Bush deserved re-election, while 53 percent said it's time for a change.

"That shows a fair degree of uncertainty about returning Bush to office," Madonna said. "But Kerry hasn't closed the deal yet."

The poll also asked respondents whether they'd seen Michael Moore's anti-Bush film, "Fahrenheit 911," or had listened to radio personality Howard Stern, who's been attacking Bush for months.

Eight percent of those surveyed described themselves as regular Stern listeners, and a little more than one in four of them said Stern's opinions made them more likely to vote for Kerry than for Bush. Doing the math, Howard moves about 2 percent of voters, at least a little.

Eleven percent of the sample said they'd seen Moore's film, and 39 percent of them said it made them more likely to support the Democrat. That amounts to some impact on about 4 percent of the electorate.

"In a close election, these commentators, personalities, whatever you call them, they can have a marginal, but not unimportant effect on voters' choices," Madonna said. "In an election that comes down to 1 or 2 percent, you can look at a lot of things as making a difference. Here we have Nader, we have 'Fahrenheit 911,' and we have Howard."

The war in Iraq and the economy loomed large in the minds of Kerry voters, and 16 percent of his voters mentioned health care as an important issue. Bush supporters overwhelmingly cited terrorism and national security as their main reason for supporting the president.

The poll showed high voter interest in the campaign, reflecting the intense campaigns both presidential candidates have waged in the battleground states. Nearly nine in 10 registered voters questioned (89 percent) said they were certain to vote.

Voters know far less about the U.S. Senate contest than they do the presidential race, and Madonna said that's the most comforting news for Hoeffel, who trails Specter by a two-to-one margin.

"This is not unusual for a challenger this far out from the election," Madonna said. "We expect Hoeffel's numbers will increase because he's a Democrat running with Kerry. The question is whether he can get past that level of 45 percent or so and begin to challenge Specter."

The Daily News/CN8 Keystone poll was conducted by Franklin and Marshall College's Center for Opinion Research, which surveyed 660 registered voters between Aug. 2 and Aug. 15. The margin of error is plus or minus 3.8 percent.

To see the entire poll, go to http://go.philly.com/keystonepoll (pdf).

from the Seattle Post-Intelligencer
August 7, 2004

Stern's listeners could tip the race, some analysts say

Popular 'shock jock' bashes Bush in between jokes, porn star interviews

In Washington and swing states across the country, a manly chunk of politically unpredictable and historically apathetic voters are hearing the call of a New York City shock jock bent on ousting President Bush.

Some analysts predict that syndicated radio host Howard Stern and his legions of listeners, most of whom are young male swing voters, will tip the presidential election in favor of Democratic nominee John Kerry.

Stern now squeezes increasingly long anti-Bush tirades into the program that previously had been known mainly for porn star interviews, gross jokes, crank phone calls and scantily clad female guests -- not political critiques.

Though he supported Bush after the 9/11 attacks, Stern now blasts the president for his positions on the war in Iraq, stem-cell research, the environment, gay marriage and religion.

In the Seattle-Tacoma market, about 300,000 people tune in to Stern every morning. The show ranks No. 1 in the morning for listeners 18 to 34 and second among those 25 to 54, according to Dave Richards, the program director for KISW, the Seattle radio station that carries Stern's show.

No matter how you slice the demographic, men tune in to Howard Stern more than any other morning radio show, Richards said. It doesn't take a genius, he added, to see that if Stern's unorthodox endorsement mobilizes, he could help the Democrats capture a lot of new voters.

"You do the math," Richards said. "Howard Stern is one of the strongest voices for 18- to 34-year-old men, and that age cell is one of the most apathetic in terms of voter response."

In Washington, recent polls suggest about 13 percent of the voters are undecided. Stern could make a difference, said Sam Rodriguez, director of Kerry's Washington state campaign.

"He can be great for us," Rodriguez said. "He can provide us with an extra 1 to 2 (percentage) points. In a close election, that could be the margin of victory."

Republicans dispute that, saying Stern won't have a significant effect.

Kent resident Dan Ross said he is proud to be among Stern's acolytes.

Ross voted for Bush in 2000 but said he'll vote for Kerry this November, in large part because of Stern's escalating lambastes of the Bush administration.

"Howard has my attention," Ross said. "It's the facts (about the Bush administration) that he pulls out."

The 26-year-old apartment leasing and maintenance man listens to the Stern show every day. He said he gets about one-third of his information about the presidential election from Stern and that his level of political interest and activism has spiked this year.

Stern's candor about sex and other typically not-for-prime time topics seems to have generated a great degree of trust among his listeners.

"I appreciate the honesty," Ross said. "It's not fabricated or contrived."

Stern regularly follows up a conversation about how much he'd like to have sex with one of his guests or a good-looking female actor with one about how Bush makes policy decisions using advice he gets from "his imaginary friend," Jesus.

His barbs include everything from calling Bush a coward and a moron to parody commercials such as one mimicking a popular beer ad: "Howard Stern presents: Bad American Presidents -- Today, we salute you President George W. Bush. You committed American troops to war, but when it was your turn to go to war, you went to Daddy and said, 'boohoo,' " the fake ad says over camped up music.

Ross' devotion to the Stern show, along with his voting decision, is part of what many strategists have dubbed "the Stern phenomenon."

A national poll commissioned in June by the New Democratic Network showed that 4 percent of people who are likely to vote are swing voters who listen to Howard Stern.

In an on-air interview, Simon Rosenberg, president of the New Democratic Network, told Stern the poll showed listeners were not beholden to either political party and would vote for the candidate they thought was best.

"What we found is that the listeners of your show could play a very, very important role in this election," Rosenberg said.Yier Shi, spokesman for the Republican National Committee, dismissed the poll and idea that Stern may give Kerry the shove he needs to win.

"The NDN is one of many Democratic groups that have spent millions of dollars trying to defeat the president," Shi said. "It doesn't surprise us that they would commission a poll that tries to show that Howard Stern represents the heart and soul of America."

Shi said that Bush and the Republican Party would focus on issues, not celebrity endorsements.

"The president and the Republican Party will speak to Americans about issues such as protecting our homeland security, growing our economy and education for our children; these important issues are what will influence the election," Shi said.

Nonetheless, people like Ross are just the type of voters political operatives have found difficult to reach in the past.

"None of the other messages, the other tools of communication, will get to them," Rodriguez said. "Stern makes his own message."

Shi, spokesman for the RNC, said Republicans are reaching out to that group as well.

"Young people are one of our targeted demographics," Shi said. "We are well on our way to registering nearly 3 million new Republican voters. We are reaching these groups."

John Gastil, associate professor in the University of Washington Department of Communication, said that in a close contest there are many factors that determine who wins. And that although it's likely that each player can take the credit or blame for the election outcome, it's impossible to determine if one or the other was the deciding factor.

"That said, I'm convinced that there is something there -- despite all of the things -- it's still real," Gastil said. "This could be part of a group of factors that tip the balance."

Other experts disagree.

"I'm very skeptical," said University of Washington political science professor David Olson. "In the ocean of the 2004 campaign, Howard Stern is a pebble on the beach. The economy is going to be the single most important factor in how this election is going to go."

Stern became a political lightning rod this spring when the Federal Communications Commission said his show violated broadcast decency rules. Regulators later announced a record $1.75 million settlement with Clear Channel, the nation's largest radio chain, to resolve indecency complaints against Stern and other radio personalities.

Stern has said the FCC crackdown has more to do with his on-air criticism of the administration than the explicit subject matter of his program.

Last month, Stern vowed on the air to dedicate two full weeks for programming to bashing Bush and promoting Kerry.

This is not the first time the self-proclaimed "King of All Media" has used his program to play kingmaker. He has promoted successful Republican campaigns, including California Gov. Arnold Schwarzenegger, New York Gov. George Pataki and New York Mayor Rudolph Giuliani.

Stern regularly predicts the Bush administration will pull the plug on his program but listeners like Ross disagree.

"They wouldn't shoot down the king," Ross said.

from the Montreal Gazette
July 25, 2004

Howard Stern roars back - and bush is target

The best secret in radio is that when Howard Stern is on a roll, when he focuses his cheap shots on a worthy target, he can be a vicious satirist.

For the most part though, Stern and his unerring radar for weakness are aimed on whatever pompous celebrity or striptease bunny happens by. His goals have not been lofty. It's not easy to aim high when you're dwarf-tossing.

It was an act that didn't play long in Montreal, where, from September 1997 to August 1998 he was on CHOM-FM. He was axed after the station bowed to pressure from the Canadian Radio-television and Telecommunications Commission, which said he violated the industry's code.

But he's on a roll now - in New York. In ratings released Monday, Stern had the city's top morning show. He remains a force on 44 other stations across the United States. After months of semi-depressed crankiness after his bum's rush from the Clear Channel network, he is untanned, unrested, and in angry good form. The strippers and porn stars remain, but listeners are also tuning in for his politics.

Stern has refashioned the censorship issue into a cudgel to beat Bush. On his Web site, a poster called The Passion of the Stern celebrates his martyrdom. On the airwaves, he brags he will take down a president. Will he? And how did this happen?

After a month of scolding, fining and censuring, the Clear Channel broadcasting monolith finally booted Stern from its radio network in February. Effectively, Stern was evicted from middle America. Stern had been targeted after Janet Jackson's Super Bowl incident, when a caller to his show used the N-word and eluded the bleep delay. He immediately seized on the issue, claiming he was a victim of the Breast that Smothered Free Speech. And then for two weeks in March, Stern's morning show on K-Rock 92.3 FM was the House of Gloom, with the host wallowing in self-pity like the stars he savages.

He moaned, predicting he'd be taken off the air. The show teetered as its host flailed. Then he rallied, lashing out at his perceived tormenters.

In late March, he even tried to drag Queen Oprah into the mess. In a newspaper story headlined Stern: Oprah Talks Dirtier, he accused the FCC of hypocrisy after a writer from O magazine explained on television the sexual activities of U.S. teenagers, bluntly describing oral and anal sex acts. That's practically the Stern manifesto; so why can't he get dirty?

It's no surprise to hear Stern play the free speech martyr: It's his default setting when the airwave censors go through a cyclical spasm of "What is this trash?" However, you could almost hear the wheels grinding a political manifesto into shape.

And from a spirit of almost total self-interest, Stern has emerged as the funniest and most tenacious critic of the Bush presidency working in any medium.

He is an erratic critic. He attacks when it suits him. But he barged into a context of tentative criticism and immediately became its loudest and rudest voice.

In a small sampling, New Yorkers were split on Stern's potential election leverage.

Dave, an actor and playwright, said, "I don't think he's taken seriously enough to have that effect. And I don't know what kind of saviour he thinks Kerry is gonna be."

Emily Fleischer, a TV producer, noted, "There are people calling in with political opinions who I would venture to say have never had an opinion before."

Those people are men in their 20s; and let's consider the numbers, which make Stern an unwelcome enemy.

When it comes to fines, Howard Stern is a one-man gang. This spring, the FCC had to break its own rules, citing him for each violation instead of laying down one fine for the entire show. That meant 18 tickets worth $27,500 each. A group called the Centre for Public Integrity estimates of the $4 million in fines issued by the FCC since 1990, Howard Stern tallied half.

His employer, Infinity Broadcasting, paid them. Howard Stern has a vast, young, male listenership in the millions, an audience much coveted by advertisers. Howard Stern was worth the trouble.

How interesting, then, to hear Stern on recent mornings, showering them not just with twin-sister lesbian pudding wrestling, but with rants against the White House, the Iraq war, the invisible vice-president.

Recently, he's mocked U.S. Attorney-General John Ashcroft, who "can't catch Osama" but can arrest '60s survivor Tommy Chong on trumped-up drug charges. Next to a list of "Anti-Bush Web sites," the FCC logo has been replaced by a swastika. Between these, dozens of politicized links to stories about Bush, Haliburton, Iraq. There have been links such as "Fellowship Finances Townhouse Where Six Congressmen Live - See Who & How They Voted" and a T-shirt campaign - "SAVE STERN Censorship Is Obscene."

Is it a movement? Consider this: Stern has solidified his audience hold in electoral "swing states" Florida and Pennsylvania, along with other battlegrounds Michigan, Ohio and Missouri. His 8.2 million weekly listeners are swing voters, all right - they swing from the rafters, they swing for the fences, they swing at passersby ...

But if even a small percentage of that audience is galvanized to vote, perhaps for the first time, who knows what could happen? An eye-opening poll commissioned by Democrats revealed some interesting characteristics of the Stern Listener (more conservative, better educated than you think). Stern had said: "My listeners will vote in a bloc."

Stern fans in 18 battleground states now prefer Kerry to Bush by 59 per cent to 37 per cent. Bush took Missouri by 78,786 votes, which may seem large but was a winning percentage of only 3.34 per cent. He won New Hampshire by 7,211 votes. He officially won Florida by 537.

In the meantime, Howard Stern's muzzling has wired some lightning through his show. On a recent Wednesday morning in the pre-sweeps quarter, Stern had three of the women from The Apprentice - Kristy, Katrina and Ereka - in studio, for two sides of Howard.

"Do you realize we are in an incredible time?" he asked. "When have you ever seen a disc jockey fight the government?"

They had never seen it before. And then:

"Do any of you girls wanna defy the government by having sex with me right now?"

They did not.

On the Net: Howard Stern's Web site: www.howardstern.com

John Kerry's Web site: www.johnkerry.com

Clear Channel's Costly Stern Decision

Radio giant's show cancellations put Howard in $12 million hole

See the complete contract for San Diego here, thanks to TheSmokingGun.com.

Jackie The Joke Man Martling

Interview by Chauncé Hayden
July 23, 2004

[Ed. - Mis-spellings in original text.]

Known for his trademark high-pitched laugh and ability to tell jokes, Jackie "The Joke Man" Martling will more than likely forever be remembered for walking away from the greatest job in showbiz...writing jokes for Howard Stern.

For over two decades Martling, 56, sat beside the King of All Media and not only wrote one-liners, the now-infamous joke teller also helped create a unique chemistry that set the standard for morning talk radio. The unmatched success of The Howard Stern Show propelled Martling's career as a stand-up comic to enormous heights. Not surprisingly, Martling's popularity with Stern fans guaranteed sellout performances in comedy clubs all around the country and spawned jokeland.com. The Web site became a lucrative vehicle for Martling to sell self-promoting merchandise such as coffee cups, t-shirts, joke books, and videos, just to name a few.

A dream home on Long Island, a beautiful wife (singer/actress Nancy Sirianni), a lucrative salary, and millions of fans, Martling seemed to have it all. But in 2001, it all came to a shocking end.

Martling, unhappy with his contract, decided to walk off the show. The gutsy protest proved to be a devastating career move when, after several weeks of tense neogations, Howard Stern decided to audition other comics to sit in Jackie's chair. Over time, Martling was replaced by actor and comedian Artie Lange and Jackie's role on The Howard Stern Show was over for good.

Stunned fans have since grown accepting of Lange. However, nobody who's ever listened to The Howard Stern Show will ever forget Martling's contribution.

Since his departure, Martling has divorced from his wife and has spent his time performing stand-up, acting, and creating a gadget called the "Talking JokeMaster" (a little talking box that tells kid jokes).

Suprisingly, Martling has chosen to remain quiet about his feelings on the events that led to his untimely departure ... Until now.

After years of friendly stalking, I was finally able to persuade Jackie to answer some probing questions sent to him via e-mail at his request. The following are his replies.

Chaunce Hayden: The million-dollar question has to be, "Is there life after Howard Stern?"

Jackie Martling: Chaunce, that's not a million-dollar question. That's a goodbye-millions-of-dollars question. Actually, it's a ridiculous question. Of course life goes on. It goes on after anything short of death. And even after that, if you're Mel Gibson.

We've heard Howard's version of you leaving the show many times. But, as far as I know, you haven't publicly given your side of the story as of yet. Can you shed some light as to what really happened that led to your leaving the show?

I'm so sorry to say there is absolutely no intrigue to the story of me leaving. Infinity Broadcasting offered me a very lucrative five-year deal, but I wanted more money than they were offering.

Is it fair to say you walked away from a seven-figure deal?

Including decimal places? No, it wasn't a seven-figure offer. Was the total for the five-year deal in seven figures? Yes.

Nobody could believe it when you didn't return to the show. What was your thought process at the time? Did you think you would eventually come back?

I was simply holding out for the money I wanted, or closer to it. I was, of course, hoping they'd come back to the table with another counter offer, which they never did.

Were you mentally and emotionally prepared to leave for good?

Was I mentally prepared to be off the show for good? More prepared than I was for these questions, Chaunce.

Looking back, now that the smoke has cleared, do you feel betrayed by anyone associated with The Howard Stern Show? Robin Quivers seems to be the loudest voice when it comes to sharing her feelings.

No, I never felt any sense of betrayal by any of them. Maybe that's a bit naive, who knows? It's how I choose to feel. We were all very close ... or at least went through a lot together ... for a long, long time. Since I don't listen to the show, I only know what I hear from whoever, and I always take it with a grain of salt, which, as you know, is very little salt.

Do you wish Howard would have done more to bring you back to the show?

Sometimes yes, sometimes no.

Did Howard call you during your holdout? If so, can you tell me how the conversation went?

No, he never called.

When did you first realize you weren't ever going to be back on the show? And did you feel depressed? Relieved? Scared? Excited? Or all of the above?

I'm not coming back? I realized I was off the show for good just before I got your e-mail with these questions. And it cured my diarrhea.

If this is too personal I understand, but it's on the minds of fans. Rumors of your long marriage to Nancy coming to an end shortly after leaving the show have shown up all over the Internet. Did the stress of leaving the show have anything to do with your marriage ending?

No.

Have other radio shows come knocking? Would you work for a competing radio show?

Did they come knocking? Chaunce, I'm a wealthy man. I have a doorbell. It plays "The March of the Gladiators," my calliope circus music from the show, and it always confuses me, because it makes me think Fred Norris is in my kitchen. And there's nothing scarier than thinking that Fred Norris is in your kitchen, except for maybe Fred Norris actually being in your kitchen.

You helped with the creation of ABC TV's "Am I Hot?" The show was created by former Stern E! Show producer, Scott Einziger. Was ABC wrong for airing "Am I Hot?" because of the similarities to a bit Howard Stern regularly featured on his radio show?

Your initial statement is incorrect, though everyone assumed as much. I wasn't in on the creation of that show. I was flown out to punch up the judges' comments on the fly during the tapings of "Am I Hot?," which I never got to do because there was no way logistically to get ideas to them, except for what we gave them before the show. The show had not only already been created, but they had already begun taping before I got the call to come out to L.A.

Did you think Howard would react the way he did about the show and file a lawsuit?

Was I surprised at Howard's reaction? After all the years in the foxhole with him, I'm never surprised at the way he reacts to anything. I will say he's very often unpredictable. That's his genius.

Howard brought in other comics to sit in your chair during your walk out. Did you have a personal favorite?

I've never listened, so I have no answer. I will say that my old pal Ron Zimmerman is a very, very funny guy, and I know he sat in a bunch of times, so I'm sure he was great.

(Follow up question via Email) You never listen to the show?

Am I able? Yes, I have a radio and my hearing is fine. But no.

How would you describe your life these days? Can you give an example of a typical day? Are you happy?

Luckily there are no "typical days" to my life. That would make me batty. And who's happy? Are you? Chaunce, it's been twenty years ... step out already. My life does include much more sleep than it used to. My stand-up is wall-to-wall dirty jokes, the same as it's been for twenty-five years! It currently begins with a little more than an hour of the very best jokes I know, after accumulating them for over fifty years. (Some of them get laughs.) And then we play "Stump the Joke Man," which is still a hoot every time.

During your years on Stern, did you ever do anything that you regret when you look back on it now?

No. Everything I and we did on the show was funny and real ... who could regret that? Luckily the hockey players I see at golf outings don't remember me pooping in The Stanley Cup.

Did you ever go home and feel uncomfortable about a particular show?

No, of course not. We were just trying to be fun to listen to. It was that simple.

What was your greatest moment on the show?

My stellar moment was saying, "Get out of the way and I'll show you how it's done, Howard," and then throwing a piece of baloney and having it cling to the contours of the target girl's asscrack. Of course, there are countless other hysterical moments, many of which you may not be aware of. I may very well finally write a book, and when I do, I don't want it to be old news. I'm of course hoping that even the stuff that went on while you were listening will be funny when I relate my version of the goings-on. So stay tuned ...

What projects are you working on now? Do you need to work, or could you comfortably retire if you chose to do so?

I've currently got seven electronic joke products that I created with Excalibur Electronics in stores internationally, and they're doing very well. This Christmas is going to be huge for us. Judging from the trends of sales so far, just the Talking JokeMaster Jr. 1 and the Talking JokeMaster Jr. 2 are a lock to sell in the hundreds of thousands. Kids go nuts for them ... simple little boxes that play kids' jokes. It's such a great story, to have accumulated dirty jokes for over fifty years, and then make my next score with the first jokes I ever heard, back in 1953. I'm also trying my hand at acting, and hanging around the independent movie scene a lot. It's great fun, it's incredibly creative on every level, and more importantly, I want to be there to hear the news if one of the many films I've done ever gets finished. Actually, a film I have a tiny role in is renting now, and it's great. It's "Anne B. Real," which was directed by my pal Lisa France (her first feature), and has won many awards at the countless independent film festivals around the world. Please go have a look. I also have a decent role -- I play a successful television comedian who has his own sitcom, so it's a stretch -- in Tom Ellis' new film, called "joke bitch," and it's going to take the festivals by storm. Did I mention that it's going to take the festivals by storm? I still do stand-up, because after a month or so of not performing, a comedian starts to twitch. I have a show at The Stress Factory in New Brunswick, New Jersey, on Thursday, July 29th, and I'm working at The Riviera Hotel in Las Vegas August 13th-15th. Hopefully interestingly, Steve Schirripa, the guy who first booked me at The Riviera, who's now a dear old friend, plays Bobby Bacala, Uncle Junior's right-hand man, on "The Sopranos."

Would you ever consider writing a book about your life? Without question, it would be a bestseller among Stern fans.

Of course I'll write a book. Probably sooner rather than later.

Will it be a tell-all?

Will it be scathing? No. I have nothing scathing to write. Will it be funny? It'll be a killer, I promise you. Will it be 100% my life and times on The Howard Stern Show? Of course not. Not when you're an egomaniac like me who thinks he has funny tales to tell about many other aspects of his life's adventures.

How would you like to be remembered by the millions of fans who enjoyed your work on The Howard Stern Show for so many years?

"He's a good guy."

Finally, would you come on the show as a guest?

Sure I'd go on as a guest. When I have something I want to talk about, which will be pretty soon. I'm working on something right now that I'm hoping I can announce on The Stern Show in a couple of months, if he'll have me

EXCLUSIVE!!! The Following Is An Exclusive Teaser To The Book That Everyone Assumes Jackie Has Been Writing For The Past 15 Year. From Jackie: I'd Appreciate It If Your Readers... My Friends And Fans... Would Drop Me Some Feedback On The Following Story And The Idea Of Serializing The Book At jackie@jokeland.com

Starting in February of 1983, I had been appearing on "The Howard Stern Show" on WNBC-AM every Tuesday afternoon when I wasn't out on the road doing stand-up. The show was from 4 p.m. until 8 p.m., and I'd sit in from about 5 until the end, playing "Stump the Comedian" and joining in whatever else was on the agenda.

Back then, I'd bring in the dirtiest and most offensive two-line jokes we could get away with for Fred Norris to call in as a Jewish grandmother (Mrs. Phlemstein) to play "Stump," and a few pages of insults in case Howard wanted to have rank-out contests with the listeners. That was the extent of my writing for the show.Sometimes Al Rosenberg sat in as Lou Ferrigno, the deaf body builder/actor who played "The Hulk." Al is a scream, and his Lou impression was hysterical. He'd hear things wrong, and react to them, and it was always funny.

One day it was after 7 p.m., and we were going to have to stop early because there was a Knicks game coming on WNBC. Howard was reading a Coca-Cola ad ... that's how long ago it was, we still had mainstream advertisers like Coca-Cola ... and he said, "... so always make sure you have plenty of Coca-Cola and snacks on hand for the game."

I heard him says "snacks," and thought of Lou hearing it wrong. I wrote down on a scrap of paper "snacks ... snatch," and put it down on the console in front of Al, who was sitting next to me.

He looked at it, and immediately mumbled in his Lou voice, "What did you say, Howard?"

Howard said, "What was that, Lou?"

Al said, "Make sure you have lots of Coca-Cola and what?"

Howard said, "Make sure you have lots of Coca-Cola and snacks."

Al said, "Boy, you're dirty, Howard."

Catching on immediately, of course, Howard said, "I said Ôsnacks,' Lou."

Al said, "See? You're disgusting, Howard."

By now we were all howling. It was perfect comedy. All I could think of was the tens of thousands of guys who weren't even fans of the show yet, who were already tuned in to WNBC to hear the game, and were hearing this wildly funny and filthy interchange.

As best I can recall, that was the first time that I passed a note and started something like that. What it generated was so great that I must have been inspired to pass more notes.

I have no idea to this day whether Howard or Robin or Fred or anybody even knew that I keyed Al into that. But it didn't matter, just like it went on to never matter ... we were all just trying to do a funny, funny show, with everybody doing all that they could. Whatever you could throw into the mix, you did.

...End

For information on where to see Jackie Martling and news updates, go to www.jokeland.com, and you can also get the information by calling "Use Your Finger!," (516) 922-WINE.

from Yahoo
July 21, 2004

Source: Clear Channel to Countersue Stern, Infinity

LOS ANGELES (Reuters) - Clear Channel Communications Inc. on Wednesday plans to file suit against Howard Stern and his distributor, Infinity Broadcasting, claiming the shock jock breached his contract by airing indecent programs, a source close to the company said.

The source said Clear Channel will file a $3 million countersuit to a $10 million lawsuit filed in federal court in Manhattan by Stern's One Twelve company and Infinity.

Stern and Infinity claimed Clear Channel had broken its contract with them when it dumped Stern's show from six stations it owns following fines against Stern by the Federal Communications Commission.

Spokesmen for Clear Channel, Stern's company, and Infinity, a Viacom Inc unit, either were unavailable or declined comment.

The ribald radio host has repeatedly accused Clear Channel of strong ties to the Bush administration, saying the company previously defended him against past indecency allegations until he became critical of President Bush.

Clear Channel, the largest U.S. radio station owner, announced a zero tolerance policy for indecent antics on the air when it dropped Stern after federal regulators turned up the pressure on radio station operators for content they deemed indecent.

The source close to Clear Channel said the company felt it had to take Stern off the air because both Infinity and Stern refused to provide any assurances that there would not be further breaches.

Clear Channel will claim in its countersuit that Stern's license agreements with all six stations required the program to conform with all applicable laws and regulations, the source said.

In June, Clear Channel admitted to airing indecent material and agreed to pay a record $1.75 million penalty to settle all existing complaints.

The company also agreed to take steps to prevent further such incidents, including formalizing its "zero tolerance" policy and training employees.

from the Palm Beach Post
July 2, 2004

Attorney activist tunes up to snag Stern

As shock jock Howard Stern's radio show returns to South Florida on July 19, Coral Gables attorney Jack Thompson will be waiting with open ears.

And a tape recorder.

"I love it because now I can record this maniac again and get him whacked again," Thompson said.

New York-based Infinity Broadcasting Corp. is putting Stern's show on West Palm Beach's new-rock WPBZ-FM 103.1 (The Buzz), along with eight other stations in other cities next month. Infinity, which syndicates the show in 35 other cities, is returning it to five markets where Clear Channel Communications Inc. had pulled it in the broadcasting corporation's effort to clean up the airwaves.

Stern, the self-proclaimed "King of all Media," is known for his foul language and sexually explicit comedy.

"They are throwing down the gauntlet with the FCC by putting Stern on more stations," Thompson said.

Thompson, who has made a legal career of fighting anything he deems pornographic and obscene, has attacked everything from rap group 2 Live Crew to the video game Grand Theft Auto III.

And he has a history with Stern and with the FCC. In April 2003, Thompson caught a portion of Stern's show after dropping his son off at school, and didn't like what he heard.

"I know what the legal standard is; I know what indecent material is," he said. "I heard it and filed a complaint."

The complaint Thompson filed with the Federal Communications Commission led to hefty fines against San Antonio-based Clear Channel, which dropped Stern's show in February and later settled with the FCC for $2 million.

On Wednesday, Infinity filed suit in federal court in New York against Clear Channel, asking for $10 million in damages for the February cancellations. Clear Channel would not comment on Infinity's expansion of Stern's show but offered a statement about the lawsuit.

"Howard Stern is the only one who has broken the law. His contract explicitly requires his show comply with all FCC rules and regulations. On several occasions, it clearly did not," said Andy Levin, Clear Channel's executive vice president and chief legal officer. "Clear Channel Radio had both a legal right and an obligation to stop broadcasting it.

A spokesman for Infinity Broadcasting did not return calls Thursday.

Thompson theorizes that Infinity is purposely placing Stern's show on WPBZ because the station cannot be heard much past northern Broward County, he said.

"I think they don't want it to reach into Coral Gables," he said.

Radio analyst Tom Taylor disagrees.

"This is just my judgment, but believe me if they had a chance to get a full-market signal in Miami, they'd do it," said Taylor, editor of Littleton, N.H.-based Inside Radio.

Thompson might be able to find a way to get Stern's show removed again. Though the now decade-old lawsuit was overturned, Thompson persuaded a federal judge in Fort Lauderdale to declare obscene the lyrics of 2 Live Crew's Nasty As They Wanna Be.

He has often appeared on television as part of his crusade against sex and violence in the entertainment industry. He also has filed lawsuits representing families of victims whose attackers shot or stabbed them after playing violent video games or surfing the Internet.

from BroadcastingAndCable.com

Million-Plus Stern Fine Near

The next bomb to drop in Howard Stern's war with the FCC is the $1.5 million fine the commission is expected to propose against the 18 Infinity stations that have been airing his show. The fine will cover the same broadcast that helped push former Stern syndicator Clear Channel into a $1.75 million settlement with the FCC.

A notice of apparent liability from the FCC has been expected since April and could appear any day.

During the show cast member Stuttering John talked about having anal sex with his wife and later Stern led his gang in raunchy talk about oral sex. Anticipating the fine, Stern called FCC Chairman Michael Powell "a crackpot" during a press conference held during Stern's morning show Wednesday.

Flanked by reporters in the studios of his WXRK flagship, Stern declared, "We are going to fight back." Infinity is expected to appeal the fine at the FCC. If the commission doesn't back down, the company is expected to go to court.

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