(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 b