from: MotleyFool.com
May 28, 2008
The drawn-out courtship between XM Satellite Radio and Sirius Satellite Radio -- an engagement that has lasted longer than many Hollywood marriages -- may finally be heading to the altar.
"The commission could act by the end of the second quarter,'' FCC Chairman Kevin Martin told reporters at a Washington D.C. press conference over the weekend.
His comments are huge, since the FCC is the only regulatory roadblock preventing the two companies from tying the knot. The Justice Department signed off on the deal two months ago.
The key word in Martin's comment is "could." We have been here before. He was hopeful for a decision coming during the first quarter, back in January.
As embarrassing as it might be for the FCC to have taken more than 15 months -- and counting -- to rule on the merger, we're close to the point where there may be blood on the regulators' hands.
Red, red whine
Losses at XM and Sirius aren't new. The saving grace is that the companies are poking through the red ink occasionally to post positive cash flow. However, waiting in fiscal limbo until they are able to cash in on the merger synergies is taking its toll.
In a troubling SEC filing statement last week, XM announced that it was tapping into a credit facility to help fund an escrow required by Major League Baseball under the satellite radio provider's programming contract. It also expects to begin using a General Motors credit facility next month.
Is indecision at the FCC slowly killing XM? That's not an easy question to answer. Citi analyst Eileen Furukawa has projected that the merger could bring cost savings of $7.2 billion. Go ahead and do the math on what keeping the two companies apart is costing them. It isn't pretty. There are other prices to pay for pitching a tent in regulatory purgatory:
* Savvy retail shoppers aren't buying XM or Sirius receivers; they could be waiting for the post-merger arrival of receivers that offer interoperability between the two services.
* XM and Sirius have scaled back their marketing, which makes sense as they put on a humble face to tiptoe past antitrust concerns.
* We are far removed from XM's Oprah moment and Sirius' Stern shot and well into a talent-acquisition lull that is likely the result of both financial restraint as well as the same tiptoeing modesty that is keeping ads in check.
* Things are humming along nicely at the auto showroom front, but penny-pinching drivers may be waiting for the half-priced plans to roll out post-merger.
There's so much to gain in a combination -- and so much squandered every day that they remain apart.
I am not saying regulators should have approved the deal last year. What I am saying is that they should have approved or killed the deal last year. What the FCC is doing now is the bureaucratic equivalent of a snuff film.
Hitting the concessions stand
The longer the FCC holds off on a decision, the more likely it is that XM and Sirius will have to offer concessions to seal the deal. If the FCC simply nods or shakes it head, unconditionally, the public will wonder why it didn't make this call last year.
It will also be the regulatory body's way of handing off the embarrassingly long decision to the satellite-radio providers themselves.
Concessions can come in many different flavors. The most obvious could be something as simple as a temporary subscription-rate freeze. The move would appease consumers. As long as it doesn't get in the way of offering premium services such as backseat video (at Sirius) or traffic navigation (at XM), it shouldn't be a dealbreaker.
Suggestions that XM and Sirius sell back chunks of spectrum, though financially appealing to the cash-hungry satellite radio providers, is highly unlikely. It would wipe out channels for those with current receivers that receive only XM or Sirius. If concessions include XM and Sirius replacing all existing radios with interoperable units, the deal is as good as dead if XM and Sirius are the ones that have to bankroll the replacements.
There is only so much that XM and Sirius can bend at this point, regardless of how important the deal is to them.
The timing is terrible, on many levels:
* XM and Sirius still need to finance the merger and at a time when lenders aren't opening up their billfolds.
* High gas prices are taking a toll on more than just discretionary spending. The Department of Transportation announced that we drove 11 billion fewer miles in March than we did a year earlier. If we are spending less time in our cars, a car-based subscription becomes less appealing.
* More cars are rolling out this year with hard drives and Apple iPod input jacks, further reducing our reliance on dashboard radio.
In short, the FCC keeps slurping satellite radio's milkshake, but the quality of the milkshake is now a concern.
from RWOnline.com
April 25, 2008
The survey area included markets that are part of Arbitron’s diary service, for people age 12 or older, but it did not include areas where the PPM is used.
The most-listened-to stations on satellite were Howard Stern and his channels. His Sirius Channel 100 showed an AQH of 97,600, an AQH rating of 0.04, cume of 1.21 million and cume rating of 0.49 for persons 12+, Monday Sunday, 6 a.m. to midnight.
“Christmas and holiday channels also saw a spike over the spring report, representing a seasonal shift in listening,” the company said.
In the 12+ report, XM overall comes in with an AQH rating of 0.32 and a cume rating of 4.28. Sirius overall received an AQH rating of 0.26 and a cume rating of 2.86.
The ratings company takes pains to point out that users cannot assume these estimates would be proportional to Metro-level estimates, if they existed, or that diarykeepers who report listening are actual satellite subscribers.
Its estimates are projected from diaries used for its local market radio ratings reports and other services.
Artie recovered by smoking some pot and eating pancakes on his pre-planned trip to Amsterdam.
Artie's ok with airing replays (and gave his permission) to Howard to air replays on both Sirius and HowardTV at some future date.
from: SunTimes.com
Sun-Times Staff Reports
Comedian Artie Lange quit his 7-year-run as Howard Stern's sidekick during a violent outburst on Thursday's Sirius Satellite Radio broadcast.
Lange, who brings his stand-up routine to Waukegan's Genesee Theatre on June 6, had an altercation with his personal assistant in the hallways of Stern's studio that made its way on air and nearly became physical before show staffers intervened.
The former "MadTV" star couldn't assure Stern that similar outbursts wouldn't happen again, telling the shock jock: "I'm not a good person ... I gotta leave ... I love you" and offered his resignation, which Stern accepted.
Lange's battle with drugs and alcohol have been well-chronicled on the show and colleagues have been concerned for his health both on the air and behind the scenes. The New Jersey-based comic, whose weight has reached nearly 300 pounds since Stern's show moved to Sirius in 2006, has often complained about the rigors of the morning show's schedule. On Wednesday, Lange slept through much of Stern's show on a bed set up in studio.
Thursday's resignation was not the first time Lange has flirted with quitting the show on-air. In 2007, Lange said he would leave the show for a 6-month sabbatical to "dry out," only to return along with the rest of crew after the show's week-long summer break.
Fans will have to wait and see if Lange's announced resignation will hold this time. Stern's show does not broadcast live on Friday and will be on vacation next week.
from NewsDay.com
By Adam Abramson
Howard Stern Show fixture Artie Lange walked out of the studio after an argument and subsequent outburst at his personal assistant on the air.
Lange, who became a part of the show's daily routine in October of 2001, was spotted disputing with his assistant in the hallways off the air. When it was brought up to Stern, he asked the assistant Teddy to come into the studio and discuss the situation on the air.
Lange began to express his disdain for his assistant of nearly two years because of recent money issues. Teddy retorted by implying there's more to the job than meets the eye.
The two are slated to travel to Amsterdam this evening and the squabble began over setting up Lange's travel accommodations. However, the in-studio dispute quickly escalated into a discussion about how much Lange finances Teddy, who is affectionately called "Teddy Microphone" around the studio.
As the argument continued, Lange became enraged and physically lashed out at Teddy, but the physical confrontation was apparently defused by other members in the studio.
When Lange returned, he said Teddy would be "dead" had he reached him and he would be in jail.
Stern then expressed his feelings on the situation, saying he cannot condone Lange's actions. The comedian, who has had a similar outburst on the air in the past, said he cannot guarantee he can refrain from acting out in the future. Upon hearing that, Stern said he cannot have Lange around with the potential of such actions looming.
Artie then offered his resignation; Stern accepted, but told Lange to leave and cool off. Just before Lange left he told Stern: "I'm not a good person ... I gotta leave ... I love you"
Teddy returned to the studio several minutes later and said there was overreacting from everyone, but did not downplay the seriousness of the situation.
Show producer Gary Dell'Abate came in to analyze the situation, but he and Stern admitted they "did not know what to make of it all."
Stern does not host a live show on Fridays and the crew is on vacation next week.
from Marketwatch.com
March 25, 2008
CHICAGO (MarketWatch) -- The Federal Communications Commission is likely to approve Sirius Satellite Radio Inc.'s acquisition of XM Satellite Radio Inc., several analysts said Tuesday, following news that the U.S. Department of Justice has wrapped up its investigation of the transaction.
The Justice Department said the proposed $4.59 billion transaction would not reduce competition, and could therefore not be opposed on antitrust grounds. The companies have argued that their market should not merely be defined as satellite radio, since they must compete against all of terrestrial radio, as well as Internet radio, audio from satellite and cable television systems, music download services and other media. See full story.
"Given the track record of the FCC, we are hard pressed to believe it will block the merger after it received approval by the DOJ," said Alden Mahabir, an analyst at Utendahl Capital Partners, in a research note.
Mahabir, who expects a decision within two weeks, added that the FCC could impose conditions on the deal. One possibility, he said, is that the agency could demand that the company follow through on a-la-carte pricing plans that Sirius and XM have already proposed.
Under one offer the companies announced last July, subscribers would be able to choose 50 channels for $6.99 -- a 46 % decrease from the current standard subscription rate of $12.95. Customers could then add more channels for a minimum of 25 cents each. Other possible conditions, in Mahabir's view, include freezing prices or giving up some of the combined company's satellite spectrum for public interest purposes.
While Paul Gallant of Stanford Group also expects the FCC to approve the Sirius-XM transaction, he offered the opinion that FCC Chairman Kevin Martin will "proceed cautiously," imposing stipulations that exceed the expectations of many observers.
Martin could require future Sirius-XM receivers to have HD radio tuners that would pick up the digital stations of traditional broadcasters, Gallant said. Martin might also try to impose "broadcast decency limits" on the heretofore-unregulated satellite radio universe, as well as tighten the a-la-carte and pricing commitments the companies have made.
Sirius and XM have already said they would offer a series of "family-friendly" packages that would allow customers to exclude the racier content provided by shock jock Howard Stern and others.
Cowen & Co.'s Tom Watts sees a potential FCC decision within "the next few days" and also anticipates that the agency will ask for "modest concessions consistent with proposals from both companies."
April Horace of Janco Partners also weighed in. "It's unclear if the FCC will place any stipulations on the proposed merger. However, if there are stipulations, we do not believe that they will be deal breakers," she said.
Sirius shares declined 1.9% to close at $3.09, while XM shares fell 2.1% to $13.50. Both stocks soared Monday on the Justice Department's decision.
David B. Wilkerson is a reporter for MarketWatch in Chicago.
from Biz.Yahoo.com
By John Dunbar, Associated Press Writer
The transaction was approved without conditions, despite opposition from consumer groups and an intense lobbying campaign by the land-based radio industry.
The combination still requires approval from the Federal Communications Commission, which prohibited a merger when it first granted satellite radio operating licenses in 1997.
The Justice Department, in a statement explaining its decision, said the combination of the companies won't hurt competition because the companies are not competing today. Customers must buy equipment that is exclusive to either XM or Sirius, and subscribers rarely switch providers.
"People just don't do that," Assistant Attorney General Thomas Barnett said in a conference call with reporters.
The government also appeared to endorse a central argument the companies used in pushing for their merger: that ample competition is provided by other forms of audio entertainment, including "high-definition" radio, Internet-based radio stations and even devices like Apple Inc.'s iPod.
"The likely evolution of technology in the future, including the expected introduction in the next several years of mobile broadband Internet devices, made it even more unlikely that the transaction would harm consumers in the longer term," the Justice Department said.
The buyout received shareholder approval in November. The companies said the merger will save hundreds of millions of dollars in operating costs -- savings that will ultimately benefit their customers. The Justice Department also noted that argument in its approval.
The FCC had no comment on the decision Monday. In the past, FCC Chairman Kevin Martin has said any approval faced a "high hurdle."
Martin said last week that agency staff was "drafting various options" in preparation for a final recommendation. The five-member commission could vote against the deal, approve it or approve it with conditions. The agency could require the companies to freeze prices or make part of their satellite spectrum available for public-interest obligations.
Both XM and Sirius declined to comment on the decision on Monday.
Sen. Herb Kohl, D-Wis., chairman of the Senate Judiciary Committee's subcommittee on antitrust, said in a statement that the merger would create a satellite radio monopoly and asked the FCC to block it.
"We are particularly disturbed by this decision, given the Justice Department's record in recent years of failing to oppose numerous mergers which reduced competition in key industries, resulting in the Justice Department not bringing a single contested merger case in nearly four years," he said.
The companies have pledged that the combined firm will offer listeners more pricing options and greater choice and flexibility in the channel lineups they receive. If the deal is approved, the companies have said they would offer pricing plans ranging from $6.99 per month, for 50 channels offered by one service, up to $16.99 a month, where subscribers would keep their existing service plus choose channels offered by the other service.
Despite the consumer-friendly promises, most consumer groups have opposed the proposed merger.
"If this is what our competition cops do, we might as well close shop and save taxpayers a few hundred million dollars because they're not doing their jobs," said Gene Kimmelman, the Washington lobbyist for Consumers Union, nonprofit publisher of Consumer Reports magazine.
Shares of both companies rose following the news. XM Satellite shares were up 15 percent in afternoon trading while Sirius was up 8.6 percent.
from Reuters.com
By Peter Kaplan
WASHINGTON (Reuters) - The Federal Communications Commission is moving closer to a decision on whether to approve Sirius Satellite Radio Inc's plan to acquire rival XM Satellite Radio Holdings Inc., the agency's chairman said on Thursday.
FCC Chairman Kevin Martin said he had asked the agency's staff to put together draft documents outlining different possible decisions the agency might reach on the merger.
"I have asked the staff, after we've gotten all the final information that we needed, to be doing drafts, and when there were issues outstanding to do a range of options for us," Martin said during a press briefing.
However, Martin said he still had not made up his mind on whether he would back approval of the deal. He said he did not expect the FCC to reach a decision before antitrust authorities at the Justice Department.
"I haven't decided what I'm going to end up doing on it. I think that (FCC staff) will have various cuts and options as a part of it, but I haven't decided yet."
Representatives of Sirius and XM declined to comment.
The deal, announced on February 19, 2007, requires the approval of both the Justice Department and the FCC.
It would bring entertainers such as Oprah Winfrey and shock-jock Howard Stern under one roof. A key antitrust issue in the case is whether the combined satellite radio company would still face enough competition from free, over-the-air radio and new technologies.
The traditional radio industry, as well as some consumer groups and U.S. lawmakers, have criticized the deal as anti-competitive. But the satellite radio companies argue that they face plenty of competition from traditional radio stations and from the growing popularity of iPods and other personal audio players.
The FCC is studying whether the deal would be in the public interest -- and whether to enforce a 1997 FCC order prohibiting the two companies from merging.
(Reporting by Peter Kaplan; Editing by Tim Dobbyn)
from: biz.yahoo.com
By Seth Sutel, AP Business Writer
Sirius and XM had hoped to close their deal by the end of last year, but it's still being reviewed by the Department of Justice and the Federal Communications Commission.
On a conference call with investors, Sirius Chief Executive Mel Karmazin said the company was prepared to go forward on its own in the event its combination with XM isn't approved, saying the company is "fully funded" to continue business.
Sirius reported that its loss for the fourth quarter narrowed to $166.2 million, or 11 cents per share, compared with a loss of $245.6 million, or 17 cents per share, a year ago.
The earnings were ahead of the 13 cents per share expected by analysts surveyed by Thomson Financial.
The company's shares rose 1 cent to close at $3.05 Tuesday.
Both XM and Sirius have consistently lost money since their inception as they spent heavily to build up their programming and customer bases. The companies have relatively high fixed costs and are hoping that they can grow profits quickly.
To date, Sirius has now reported an accumulated net deficit of $4.94 billion.
Sirius finished the quarter with 8.3 million subscribers, 2.3 million more than a year ago. The gain pushed revenue 29 percent higher to $249.8 million.
Sirius did not provide a full-year outlook, pending a ruling on its proposed purchase of XM, which is worth about $4.5 billion based on current share prices.
Sirius said the average cost for acquiring each subscriber, a number closely watched by analysts, fell 12.6 percent to $90 in the quarter, from $103 in the same period a year ago, driven by lower costs for receiver units.
Total operating costs fell 7 percent to $399.6 million.
For the full year, the company reported a net loss of $565.3 million or 39 cents per share, versus a loss of $1.1 billion or 79 cents per share in 2006. Full-year revenue rose 45 percent to $922.1 million from $637.2 million.
from: biz.yahoo.com
NEW YORK, Jan. 9 /PRNewswire-FirstCall/ -- SIRIUS Satellite Radio today announced that January 9, 2008 marks the beginning of Howard Stern's third year broadcasting exclusively on SIRIUS Satellite Radio.
On January 9, 2006 Howard left his long and dominating reign in terrestrial radio to launch his show on SIRIUS in one of the biggest media events of the century. He was joined by longtime co-hosts Robin Quivers, Fred Norris, Artie Lange, and producer Gary Dell'Abate.
In the 730 days since Howard has been on the air at SIRIUS, the number of SIRIUS subscribers has surged to over 8.3 million.
"Howard Stern revolutionized broadcasting, and at SIRIUS he has redefined radio," said Scott Greenstein, SIRIUS' President, Entertainment and Sports. "Howard and his team continue to build the future of radio."
At SIRIUS Howard has been able to deliver more to his fans than ever before. Having two dedicated Howard channels -- Howard 100 and Howard 101 -- makes it possible for SIRIUS to replay The Howard Stern Show all day and night.
In addition, The Howard Stern Show is available online worldwide through SIRIUS Internet Radio at www.sirius.com, as well as at www.howardstern.com.
In December 2007, SIRIUS premiered The History of Howard Stern, an unprecedented radio documentary celebrating Howard's life and career. The History of Howard Stern was produced exclusively by and for SIRIUS for the Howard Stern channels, and is representative of programming that could only be done at SIRIUS.
The first installment of this epic series -- "The Early Years" -- spanned Howard's birth through his infamous days at WNBC Radio in New York City, and featured never-before heard audio and exclusive interviews with David Letterman, Pam Anderson, Alec Baldwin and other celebrities. The second installment of The History of Howard Stern will debut in December 2008, and future installments will follow.
from: Biz.Yahoo.com
NEW YORK (Reuters) - Sirius Satellite Radio ended 2007 with more than 8.3 million subscribers, a 38 percent rise that met its target for the year.
Sirius, in a statement released late on Thursday, added about 2.3 million net subscribers in the year, and its gross subscriber additions were the highest in the history of satellite radio.
"Based upon preliminary financial data, we expect to report significantly greater positive free cash flow in the fourth quarter of 2007 than the company reported in the fourth quarter of 2006," said Mel Karmazin, chief executive of Sirius, in a statement on Thursday.
Last February, Sirius, which is in the process of acquiring rival XM Satellite Radio Holding, said it expected in 2007 to add 2 million customers to bring its total to "more than 8 million."
By contrast, XM has previously said it would end 2007 with 9.0 million to 9.2 million subscribers.
from: Reuters.com
WASHINGTON (Reuters) - Lawmakers on the U.S. House of Representatives antitrust task force have expressed concern about the Justice Department review of Sirius Satellite Radio's proposed purchase of rival XM Satellite Radio.
Shares of the two companies fell sharply in the final hour of regular trading on Wednesday, as some investors feared antitrust enforcers might reject the combination.
XM shares closed down nearly 10 percent to $13.21 and Sirius closed 6 percent lower at $3.29, both on Nasdaq.
In a letter to Attorney General Michael Mukasey dated December 11, Reps. John Conyers and Steve Chabot wrote:
"We were dismayed to learn of recent press reports suggesting that Justice Department staff may be trying to rush through the merger before you have an opportunity to fully participate, and that Assistant Attorney General for Antitrust Thomas O. Barnett may intend to grant the merger over the objections of department staff."
A copy of the letter was obtained by Reuters on Wednesday. Conyers, who chairs the task force, is a Michigan Democrat, while Chabot is a Republican from Ohio.
Although U.S. lawmakers sometimes hold hearings to air concerns about large mergers, they have no direct say in whether the transactions are approved.
Analysts said the ultimate decision rested with senior Justice Department officials.
"We do believe there is a chance that the staff may recommend rejecting the merger of Sirius and XM, but even if they do, it remains up to the senior lawyers at the Department of Justice to decide whether or not to approve the merger," said Frederick Moran, an analyst at Stanford Group.
XM had no comment on the share movement. A Sirius spokesman was not immediately available.
"There are only two possibilities here: something has leaked from Justice Department and their review on the proposed merger or some very smart, fast money is really wrong," said Jon Najarian, co-founder of Web information site Optionmonster.com.
Barnett last year decided to approve appliance maker Whirlpool Corp's purchase of Maytag Corp, despite the objections of staff lawyers at the antitrust division.
By some estimates, Whirlpool and Maytag made about 70 percent of the washing machines and dryers sold in the United States. But Barnett concluded concerns about market share had been offset by the prospect of expanded competition from other manufacturers and efficiencies gained by combining the two companies.
from: Marketwatch.com
December 7, 2007
BERKELEY, Calif. (MarketWatch) -- When the two satellite-radio broadcasting systems came onto the consumer-electronics scene in 2001, early adopters were jazzed about the potential for a national network of good commercial-free music.
At first, I was not a fan of any radio system that had you pay a subscription. But I also knew there was an opportunity in the market for good programming, since the local stations had long since, in my opinion, become boring under the auspices of Clear Channel Communications, Inc and other conglomerates. These gave audiences a tedious sameness from station to station, across the country.
The satellite systems, Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. also seem to have an appeal with long-haul truckers and people in the middle of nowhere who could get nothing else.
I first began to use the systems a couple of years ago, and appreciated the outstanding programming and great variety of shows. Rental cars now feature them. If I spent more time in my car, I would consider subscribing for sure.
But neither system is profitable, and the likelihood seems remote that either one will turn a profit while the other exists. This is an example of competition killing two companies at the same time.
It's silly to imagine that these two companies fighting to the death are competing in such a way that benefits consumers.
They know this is a problem. We all know this is a problem. The National Association of Broadcasters knows this is a problem.
In protesting the merger, I believe that the NAB, which represents old-fashioned terrestrial broadcasters, would like to see both Sirius and XM go under. It's not about competition; it's about protecting the old-timers and big conglomerates.
At this point there are only four scenarios:
1. The two companies can continue to bleed money as separate entities and eventually go broke.
2. The two companies can continue to bleed money until one goes broke before the other -- leaving one left to create the monopoly everyone fears. The last firm standing may be so damaged by this that it, eventually, goes broke too.
3. The two companies can merge and still go broke.
4. The two companies can merge and eventually find the right financial and programming formulas to turn a profit.
Most of the outlooks are grim, and it's silly to imagine that these two companies fighting to the death are competing in such a way that benefits consumers. The public does not benefit from a situation where competition will kill one or both of the players.
No matter how you look at it, these two companies cannot both survive. There eventually will be a monopoly no matter what happens, and there may be a result where the entire service is lost forever.
Furthermore, the one merged company is hardly a monopoly by any standards. How can it abuse its position? Charge more than people want to pay?
It won't work. There are too many alternatives such as a automobile CD players, MP3 devices and regular radio stations. The monopoly argument is actually a joke.
Sirius and XM were sincere in their efforts to bring a different kind of radio to listeners, and over time it has become clear that there is not room in the market for two such companies. It has nothing to do with competition.
Let them merge immediately, and let's hope the one merged company can manage to turn a profit.
from: ap.google.com
 |
| Radio personality Howard Stern conducts an on-air news conference during his debut show on Sirius Satellite Radio, in New York, in this Jan. 9, 2006 file photo. (AP Photo/Richard Drew, file) |
NEW YORK (AP) — Howard Stern finds himself listening to something different these days: "The Howard Stern Show," on satellite radio.
Unlike his last years on terrestrial radio, where Stern felt his voice was neutered and his program sterilized, the still undisputed king of the shock jocks loves what he's hearing now.
"I know the show is funnier," Stern says over lunch. "I tune in and it's funny. It's a good show. I'm proud of it."
Oh, and one more thing ...
"When you're making a joke," the oft-censored radio star says, "the punch line doesn't need to be bleeped."
Almost two years since his much-heralded leap from CBS Radio's WXRK-FM and terrestrial syndication to Sirius Satellite Radio, Stern is blissful.
He's reveling in the huge increase in satellite radio subscriptions, not to mention the woes of old foes like his ex-employer or longtime nemesis Don Imus.
He's only two years into his five-year, $500 million deal with Sirius and he's already considering a possible extension. Stern is on board with the proposed satellite merger with once-rival XM. And he's proud of his role in expanding the number of Sirius subscribers from 600,000 when he signed his deal to nearly 8 million today.
Stern, his hair creeping out from beneath a black knit cap, is delivering his state of satellite address between bites of two turkey burgers (no rolls, just a salad). Stern admits now that his loud boasts about the future of satellite radio before his debut were as wishful as anything else.
"I didn't think it would be like this," Stern says. "Not this fast. This is crazy. ... I just didn't want to be embarrassed."
It was Dec. 16, 2005, when Stern said goodbye to terrestrial radio after an unprecedented run in the nation's No. 1 market. Tired of federal regulators and feuding with his bosses, Stern signed on with Sirius and never looked back.
But Stern still keeps an eye on terrestrial radio — mostly as a source of schadenfreude.
He delighted in the problems that CBS Radio endured after his departure, from the ill-fated hiring of David Lee Roth as his replacement to the whole mess with Imus, fired over his remark about the Rutgers University women's basketball team.
"I don't want to see anyone doing poorly," Stern says sarcastically before breaking into laughter.
And he wonders why Citadel Broadcasting would bring Imus back on its New York flagship station, WABC-AM.
"At this point, I don't think he's very relevant," Stern says. "People will tune out within a week. I defy you to listen. It's like a rodeo — you know, see how long you can ride a bull? See how long you can keep listening to Imus.
"Time it. You'll throw up. You'll get sick. You'll die."
Stern is more excited about the potential merger between his company and XM.
"It would be great for the industry, great for the company, great for the consumer," he says. "I'm not a salesman for the merger, I don't know all the facts and figures, but there's more service and they're talking about lower prices."
He has no fears of the government intruding into satellite radio over its unexpurgated content.
"I don't see, legally, how government regulation would hold up in a pay industry," says Stern, whose First Amendment battles with the Federal Communications Commission once led to a $1.7 million fine.
"Then they're going to have to do that with the Internet, and newspapers, and magazines — everything," Stern continues. "If people are paying for it, why would there be government regulation? And I don't see that ever changing."
Stern's two-year anniversary at Sirius comes with a gift for his fans/subscribers: an epic recounting of the King of All Media's life. "The History of Howard Stern" — beginning with Stern's bar mitzvah and trips to summer camp — debuts Dec. 17 on Sirius, covering the years 1954-85.
It's the kind of radio that keeps Stern listening to his own stuff, and keeps his fans coming over to Sirius as he gets ready for year three. As Stern starts speaking enthusiastically about those fans, one stops by the restaurant table to say hi: Alan Alda.
Yes, "Hawkeye" Pierce from "M*A*S*H," the Oscar-nominated and Emmy-winning actor, the silver-haired Hollywood star. The pair swap moves from an imaginary chess match, with Stern delivering a stumper.
"I mostly lose," Alda says.
"I'll show you what to do," Stern replies.
No surprise, the radio star sounds like he knows what he's talking about.
from CNN.com
NEW YORK (AP) -- Shareholders approved a deal Tuesday to allow Sirius Satellite Radio Inc. to acquire its rival XM Satellite Radio Holdings Inc. for about $5 billion, but the largest hurdle has yet to come -- regulatory approval in Washington.
Shareholders of Sirius and XM had been widely expected to approve the deal, which would allow the companies to save costs on programming, acquiring subscribers and broadcasting. Shareholder advisory firms had already endorsed the deal.
More difficult will be getting the deal approved in Washington, where the Department of Justice and the Federal Communications Commission must both give their blessing. Several consumer groups have opposed the combination, saying it would create a monopoly that could hurt consumers.
Sirius said in a statement that more than 96 percent of the shareholder votes cast approved the acquisition, while XM said 99.8 percent of its shareholders were in favor. The companies said they still hoped to complete the deal by the end of the year.
The FCC had originally said the two satellite radio companies couldn't combine, but that rule can be changed. Sirius and XM have argued that satellite radio now faces more competition for listeners since the boom in digital listening devices like Apple Inc.'s iPod, Internet radio and cell phones that can play music.
Sirius and XM have said that a combined company would offer listeners more pricing options and greater choice and flexibility in the channel lineups they receive.
Sirius and XM now offer packages of music, talk, sports and other programming for a fixed rate of $12.95 a month. Many of the music channels are commercial-free, and unlike terrestrial radio, the signals can be received anywhere in the U.S.
If the deal is approved, the companies have said they would offer pricing plans ranging from $6.99 per month, for 50 channels offered by one service, up to $16.99 a month, where subscribers would keep their existing service plus choose channels offered by the other service. It isn't possible now to pick channels one by one.
The deal calls for XM shareholders to receive 4.6 shares of Sirius for every share they own, which values XM at $16.56 a share or about $5 billion, based on current share prices.
from OrbitCast.com
Reports have come in today claiming that Thomas Barnett, Assistant Attorney General for the Department of Justice Antitrust Division will approve the Sirius-XM merger, according to a Cowen & Company note issued today.
While no official announcement has been made, the reports have sent Sirius Satellite Radio Inc. (SIRI) and XM Satellite Radio Holdings Inc. (XMSR) stock soaring up nearly 6% today, despite a relatively weaker market. According to Cowen & Company analyst Tom Watts, the Antitrust Chief's approval would come "despite a staff recommendation against the deal."
In addition, it's reported that the announcement of a decision also might arrive as early as next week.
Watts notes that the pattern of the Antitrust Chief acting contrary to his staff's recommendations would be similar to the approval of the Whirlpool-Maytag merger of 2006. The Antitrust Chief ultimately approved the Whirlpool-Maytag merger, despite that DoJ staff was reported to be positioning to block the deal.
Cowen & Company continue to expect the Sirius-XM merger to be approved, and "take encouragement" from word that a decision come as soon as next week.
from Orbitcast.com
The Federal Communications Commission has announced the public comment period for the Sirius-XM merger application has started. Comments/petitions are due July 9th, 2007 and responses/oppositions are due July 24th.
The clock has started.
Sirius and XM have issued the following joint statement regarding the announcement:
"The FCC public comment period is an important step in the regulatory review of our merger and brings us closer to its completion. The combination of our companies will lead to more choices and better pricing for consumers, and result in a stronger competitor in the rapidly evolving audio entertainment market. These benefits explain why the merger already has received the strong support of a wide array of minority, consumer, women's and rural organizations. We are confident that the comments filed with the FCC in the weeks ahead will continue to reflect these significant public interest benefits.
"We look forward to working with the Commission to demonstrate that this merger is in the public interest, will have no anti-competitive effects on the market and to making any appropriate changes in its 1997 licensing order."
Send the FCC a comment on the merger here.
What's in the merger for you? Sirius' side: siriusmerger.com
from: whittierdaily.com
Someone once said that the best way to get rid of a bad law is to enforce it vigorously, thus making its flaws visible to all. Federal regulators may not induce repeal of the antitrust laws, but they show a talent for making the statutes look obsolete.
It's widely accepted that one of the crucial functions of government is to protect against monopolists and cartels. Left to its own devices, many critics of capitalism believe, the market would allow voracious corporations to collude, joining forces to hold consumers upside down and shake the nickels out of their pockets. To ensure that free markets operate for the benefit of all, we are told, the government has to strictly police mergers to keep any company from gaining an unfair advantage.
That is what it claims to be doing in two different sectors. Federal Communications Commission Chairman Kevin Martin has expressed serious qualms about approving a wedding between the only two satellite radio companies, Sirius and XM. The Federal Trade Commission is going to court to block a merger between two organic grocery chains, Wild Oats and Whole Foods.
In both cases, the rationale is that fewer companies will mean fewer choices and higher prices. But consumers who want what these firms provide have more options than the Milky Way has stars. If a couple of those stars cease to exist, nobody will notice, and besides, new stars are born every day.
Organic food consumers would not be the suffering captives of this new company. The business is growing like an organic weed. Every grocery store has a raft of offerings, and chains from Wal-Mart to Trader Joe's are fighting to get their share of sales. If the bigger Whole Foods is price-gouging, customers can easily find other sources for what they want - from farmers markets to online suppliers.
The key government error is defining the market as a narrow sector isolated from other sectors that provide reasonable substitutes. That same mistake explains the FCC chairman's aversion to the satellite radio deal, as well as the letter from 72 members of the House of Representatives claiming it would have "devastating" consequences for listeners.
As it happens, the alternative to one satellite radio company may not be two companies but none. The existing ones have accumulated about $7 billion in losses between them. The merger may allow them to reduce costs, so they can eke out a profit and stay in business.
Raising prices would not be easy, since consumers have plenty of affordable options. Music fans can listen to terrestrial radio, pop in a CD, find an Internet feed, turn on an iPod, flip to the cable TV music station or checking out YouTube.
Web radio may not get as much attention as Howard Stern, but it has four times as big an audience as XM and Sirius combined. In his alarm about the proposed merger, Martin has mistaken a mouse for a moose.
The truth is, markets are more complex and dynamic than regulators assume. Bill Clinton's Justice Department tried to break up Microsoft before it enslaved us all, but the feds got far less than they wanted. Microsoft, however, has found out that even a virtual monopoly doesn't guarantee prosperity. Despite controlling more than 90 percent of the market for computer operating systems, the company's stock price has been flat for the last decade - while Apple, which has only a tiny share, has increased in value 15-fold since 2003.
Meanwhile, other companies, notably Google, have trounced Microsoft in other areas. Over the last decade, says Thomas Hazlett, a professor of law and economics at George Mason University, "Microsoft has seen its market position erode, and it has virtually nothing to do with the antitrust case."
The point is not that corporations will never try to suppress competition, as Microsoft is accused of attempting with its new Vista operating system, which it recently agreed to alter in response to a complaint from Google. The point is that they will usually fail, because of the many choices available to the buying public - and that on the rare occasions when they succeed, the success is invariably fleeting.
Steve Chapman is a columnist with the Creators Syndicate.
from the NY Post
May 25, 2007 -- Beloved Howard Stern-sidekick Artie Lange says he's leaving the radio broadcast next January after more than six years with the radio program.
Lange made the announcement yesterday, live on the air, stunning his colleagues and even catching Stern off guard.
"I just feel burned out," Lange told The Post. He has been juggling the pre-dawn hours of "Stern," a brutal stand-up comedy touring schedule, a recurring role on "Rescue Me" and a guest spot on "Entourage."
All the work comes just as Lange tries to battle a long-term drug and alcohol addiction, depression and poor eating habits that have pushed his weight to over 300 lbs.
"Nothing is set in stone, but it's something I'm seriously thinking about. The schedule is destroying me. I love the show, and I love the people. I'm just really concerned about my health," he says.
During a recent physical, a doctor told Lange that he needed to make some sort of a change in lifestyle or risk death. "I have to find a happy balance . . . none of this is going to be worth it if I drop dead at a Best Western in Milwaukee," he says.
from the NY Daily News
May 24th 2007
Starting as early as today, 92.3 FM may no longer be the land of the Free.
Several well-placed radio sources say CBS Radio is dropping the edgy "hot talk" Free-FM format at WFNY (92.3 FM) and switching back to contemporary rock music.
If this happens, it will mark the end of a brief and troubled life marked by low ratings, the embarrassing David Lee Roth morning show and most recently the removal of hosts JV and Elvis over a prank phone call.
Defenders have noted that, perhaps ironically, the format was designed to be risky, open and controversial. They have also argued that it wasn't being given enough time or support.
But CBS Radio President Dan Mason, who replaced Joel Hollander last month, may feel it's more trouble than it's worth. Tom Taylor, editor of Radio-Info.com, notes Mason has made it clear Free-FM isn't his favorite format.
Since he arrived, the Free-FM tag has been dropped at Chicago's WCKG and San Francisco's Free was moved from FM to a smaller AM frequency.
There were no official comments yesterday from CBS or WFNY, though rumors have been swirling about possible changes.
CBS Radio created Free-FM under Hollander as a way to help keep the younger male listeners it feared would vanish when Howard Stern left for Sirius Satellite Radio in January 2006.
But hiring Roth proved disastrous, and in three months CBS brought back Opie and Anthony, whom the company had taken off the air in August 2002 over their "Sex in St. Patrick's" incident.
Veteran John Mainelli was hired as program director and he put together a lineup that included Ron and Fez and comedian Nick DiPaolo. But problems continued with the JV and Elvis dismissal and fallout from an Opie and Anthony controversy over a bit on their XM Satellite show.
Ratings also lagged. This winter, WFNY averaged just 1.3% of the city audience - though it did better with younger men.
Some reports have Steve Kingston, who programmed rock there for a stretch in Stern's day, returning as program director. Rock ratings were modest, though Taylor notes Stern's dominance "made it hard for the station to develop a rock identity."
If Free drops talk, that would leave Opie and Anthony temporarily homeless. They are on suspension at XM until June 15.
from YAHOO.com
By Seth Sutel, AP Business Writer
Karmazin, addressing shareholders at an auditorium in midtown Manhattan, acknowledged that he was "real unhappy" with the company's stock price, but he stressed that he has not sold a single share of the roughly $20 million of his own money he has invested.
Sirius stock has fallen consistently since early 2006, when it opened the year trading at $6.70, and has been below $3 since early May. On Thursday it edged up 4 cents to $2.90.
Karmazin noted that Sirius' shares were up just 8 percent since September 2004, when the satellite radio service had just 600,000 subscribers, compared to the roughly 6.5 million it has today.
But Karmazin noted that wasn't nearly as bad as the 61 percent decline over the same period posted by the shares of rival XM Satellite Radio Holdings Inc., which Sirius has agreed to acquire. The stock deal was valued at $4.7 billion when it was first announced Feb. 19, though today it would be worth $4.1 billion.
Karmazin blamed the poor performance of the stocks on Wall Street's negative view of the satellite radio business, despite the progress both companies have made building their subscriber bases and getting closer to profitability. Both Sirius and XM continue to lose money as they invest in acquiring subscribers and beefing up their programming lineups.
Karmazin also defended Howard Stern's $500 million pay package signed with Sirius in 2004, saying: "He earned it."
Karmazin, a longtime radio executive and former president of the media conglomerate Viacom Inc., acknowledged that Sirius and XM had an "uphill battle" to get their combination approved. Traditional radio broadcasters have been lobbying against the deal.
A shareholder asked whether Sirius would consider hiring Don Imus, who was fired by CBS Corp.'s radio division after making racially charged comments about the Rutgers University women's basketball team. Karmazin responded that he hadn't been talking to Imus but thought it was a "disgrace" the way Imus had been forced out. Karmazin noted that he was a "significant" contributor to Imus' charity ranch for kids with cancer.
from YAHOO.com
By Seth Sutel, AP Business Writer
Net loss narrowed to $144.7 million or 10 cents per share versus $458.5 million or 33 cents per share in the same period a year ago, slightly better than the 11 cents per share loss that analysts were expecting.
Excluding the Stern payout and other stock-based compensation, the results came in at 8 cents per share versus 13 cents per share in the year-ago period.
Revenue rose 61 percent to $204 million from $126.7 million, but was below the estimates of $212 million recorded by analysts polled by Thomson Financial.
Sirius, which has reached an agreement to acquire its rival XM Satellite Radio Holdings Inc., gained 556,490 net subscribers in the first quarter, ending the period with 6.6 million subscribers.
XM, which reported earnings April 26, said it ended the quarter with 7.9 million subscribers and has since then topped the 8 million mark.
Sirius' costs for adding each subscriber, a figure closely watched by investors, decreased to $104 in the first quarter from $113 in the same period a year ago, which the company attributed to lower commission and subsidy rates, as the costs for manufacturing radio units declined.
However, another key figure, average monthly churn, increased to 2.3 percent from 1.8 percent, representing the percentage of subscribers that drop out every month. The higher the churn rate, the more subscribers must be added in order to continue growing the customer base.
Sirius stood by its previous guidance of reaching $1 billion in revenues this year, as well as more than 8 million subscribers by the end of the year, and an average monthly churn rate of between 2.2 and 2.4 percent. It also said it expected subscriber acquisition costs to be about $95.
Sirius' CEO Mel Karmazin confirmed his expectation that the proposed acquisition of XM will close by the end of the year. However the deal faces tough regulatory scrutiny in Washington and is being opposed by some consumer groups.
Craig Moffett, an industry analyst with Sanford C. Bernstein, said in a note to investors that Sirius' subscriber gains were ahead of his expectations, indicating that "demand for satellite radio is far from dead," but he cautioned that customer acquisition costs remained "stubbornly high" and that the subscriber churn rate was higher than he had expected, although in line with the company's forecasts.
Moffett also said that the average revenue per subscriber, another important measurement, was "a touch light," coming in at $10.46, below the year-ago figure of $10.80 and also below his forecast of $10.87.
Sirius' shares slipped 9 cents, or 3 percent, to close at $2.87 on the Nasdaq Stock Market, where they have traded between $2.72 and $5.01 over the past year.
from: YAHOO.com
Sirius had a net loss of $245.6 million, or 17 cents a share, in the last three months of 2006 versus a loss of $311.4 million, or 23 cents per share, in the same period a year earlier.
Revenues more than doubled to $193.4 million from $80 million a year earlier.
Analysts polled by Thomson Financial were expecting a loss of 19 cents per share on revenues of $173 million.
Sirius, which is based in New York, ended the year with just over 6 million subscribers, 82 percent higher than the 3.3 million it had a year earlier.
Sirius has agreed to buy its Washington, D.C.-based rival XM in a combination that would create one large provider of satellite radio services, but the deal, which the companies announced last week, will face tough regulatory scrutiny in Washington.
The companies describe the transaction as a merger of equals, but Sirius is paying a premium for XM's stock, and the new company will be run by Sirius' CEO Mel Karmazin while XM's CEO Hugh Panero is departing.
Sirius also reported Tuesday that its average monthly "churn" rate, or the rate at which paying subscribers leave, rose to 2 percent in the fourth quarter from 1.5 percent in the same period a year ago. That figure is closely watched by investors because it could suggest higher costs for growing its subscriber base. Sirius said it expects average monthly subscriber churn between 2.2 percent and 2.4 percent in 2007.
In other figures also monitored by investors, Sirius said its cost for acquiring each subscriber fell to $103 from $113 in the same period a year ago. However, the total number of "gross" subscriber additions -- before accounting for dropouts -- fell 2.5 percent to 1.23 million in the fourth quarter.
Both Sirius and XM have posted major financial losses as they build up their subscriber bases and programming lineups.
Shares of both companies declined more than 40 percent last year amid concerns about slowing growth, particularly in retail sales. The companies are increasingly looking to add subscribers through radio units that come pre-installed in vehicles.
Sirius said it expects to have more than 8 million subscribers by the end of 2007 and revenues approaching $1 billion.
For the full year 2006, Sirius posted a net loss of $1.1 billion, or 79 cents per share, versus a loss of $863 million, or 65 cents per share, a year earlier. Full-year revenues rose to $637.2 million from $242.2 million in 2005.
Sirius shares fell 9 cents, or 2.4 percent, to $3.65 on the Nasdaq Stock Market. They have traded in a 52-week range of $3.50 to $5.57.
from Reuters
The transaction, which faces regulatory scrutiny and objections from terrestrial radio companies, gives XM shareholders 4.6 Sirius shares for each XM share held.
The deal has Sirius paying about $4.6 billion in stock for XM, or a 21.7 percent premium to XM's closing share price of $13.98 on Friday, based on shares outstanding in the latest regulatory filings.
Veteran media executive Mel Karmazin, currently Sirius CEO, will lead the new company as CEO, while Gary Parsons, now chairman of XM, will hold the same position in the new company. It said Hugh Panero, XM CEO, will continue in his current role until the merger closes.
The merger would create a company with about $1.5 billion in 2006 revenue and an enterprise value of $13 billion, including $1.6 billion in net debt.
"This combination is the next logical step in the evolution of audio entertainment," said Karmazin in a statement. He said it will create "unprecedented choice for consumers."
The deal will face tough regulatory scrutiny. The satellite radio licenses prevent one entity from owning them, however Federal Communications Commission Chairman Kevin Martin said last month that its rules are open to change.
"I think it's a close call, but more likely than not I think the Justice Department and the FCC approve it," said Blair Levin, an analyst at Stifel Nicolaus & Co. and a former FCC chief of staff during the Clinton administration.
The National Association of Broadcasters, which represents local broadcast radio stations, immediately criticized the tie-up because it would concentrate the licenses into one company and accused them of seeking a government bailout.
"When the FCC authorized satellite radio, it specifically found that the public would be served best by two competitive nationwide systems," said NAB spokesman Dennis Wharton.
"Now, with their stock prices at rock bottom and their business model in disarray because of profligate spending practices, they seek a government bailout to avoid competing in the marketplace," he said. (additional reporting by Jeremy Pelofsky)
from Yahoo! News
 |
| In this photograph provided by XM Satellite Radio, Gary Parsons, Chairman of XM Satellite Radio, left, and Mel Karmazin, CEO of Sirius Satellite Radio shake hands following the signing of the merger agreement between the two companies, Monday, Feb. 19, 2007, in Washington (AP Photo/XM Radio, John Harrington) |
The companies billed the deal announced Monday merger of equals, with shareholders of both companies owning approximately 50 percent of the combined company. However, Sirius will be giving $4.57 billion of its stock to XM shareholders, a substantial premium to the value of their shares.
Sirius' Chief Executive Mel Karmazin will lead the combined company, and XM's CEO Hugh Panero will stay on only until the deal is closed. XM Chairman Gary Parsons will remain in that role.
The deal, which was announced Monday, faces substantial regulatory hurdles in Washington, including a Federal Communications Commission provision that specifically forbids the two companies to combine. Analysts note, however, that the FCC could change the rule or allow an exception to it.
A combination would also have to meet antitrust approval from the Department of Justice. The companies are expected to argue that they compete not only with each other but also with traditional radio and a growing base of digital audio sources such as iPods, mobile phones and non-satellite digital radio.
The XM shareholders will receive 4.6 shares of Sirius stock for every share they own, valuing them at $17.02 each based on Friday's closing price for Sirius shares. That gives XM shareholders a premium of 22 percent to the $13.98 closing value of their stock on Friday. Markets were closed Monday for the Presidents' Day holiday.
Investors and analysts have been speculating about a deal for months, and are hoping that the cost savings that would result would make up for softening retail demand for satellite radio units. Both services offer dozens of channels of talk and commercial-free music for monthly fees of about $13.
XM radio receivers can't receive signals from Sirius, and vice versa. But Karmazin and Parsons said in an interview that the companies are working on developing a receiver that could receive both signals.
In the meantime, they said, assuming the deal goes through, the companies would make other arrangements to bring programming that's currently exclusive to one provider to listeners of the other, such as getting Major League Baseball games -- currently only available on XM -- to Sirius listeners.
"We will be taking every effort to find the best possible programming combination," Parsons said.
It's too early to say what the deal will mean for subscription prices. The merger could bring down the cost of providing service, but at the same time give the company more pricing power as the only U.S. satellite radio provider.
Karmazin declined to comment specifically about how much the companies hoped to save by the merger, but he said he expected the deal to clear regulatory approval and close within six to nine months. "We understand that there's a lot of work to be done," Karmazin said.
Neither XM nor Sirius have turned a profit yet as they spent heavily to build up their programming lineups and subscriber bases. Both stocks declined more than 40 percent last year on concerns about their continued growth in subscribers, but investors have held out hope of a merger.
The combined company would have had about $1.5 billion in revenues in 2006 and about 14 million subscribers, they said. The companies said they would work together to decide on a new name and also to determine where it would be based. XM is based in Washington, while Sirius is based in New York.
The new company's board will have 12 members, including Parsons, Karmazin, four independent directors named by each company, and one representative each from General Motors Corp. and Honda Motor Co.
News of a possible merger was reported earlier Monday by the New York Post.
On Friday, a Bear Stearns analyst said in a research note that a merger would have a good chance of overcoming regulatory obstacles.
Other analysts remain less sure. Sanford C. Bernstein analyst Craig Moffett said he gives the deal a "50-50" chance of passing regulatory muster.
Moffett said the deal could have a particularly tough time getting through the FCC, and said it was "anyone's guess" as to whether the FCC would change its rule barring a consolidation of the two satellite radio companies.
A group representing radio companies, the National Association of Broadcasters, put out a statement Monday urging federal regulators to block the satellite radio deal.
from Yahoo News
Los Angeles (E! Online) - Hey, now: The King of All Media has found his new queen.
Howard Stern—make that Howard A. Stern the shock jock and not the Anna Nicole Smith hanger-on—announced Wednesday that he's gotten engaged to his longtime girlfriend, Beth Ostrosky.
Stern, 53, said that he popped the question to the 34-year-old model-actress Tuesday night by first asking her another, namely, "Do you want your Valentine's Day gift now?"
Stern went on to detail the R-rated romantic encounter (in uncensored detail on his Sirius Satellite Radio show, natch), wherein he insisted his betrothed to strip down before he surprised her with the ring.
Ostrosky first protested, Stern claimed, arguing that she was too fat. Stern said he knew then that proposing was the right thing to do, as "any girl who looks like that and thinks she's fat—I've got a chance with her."
She eventually relented and disrobed, at which point Stern produced a 5.2-carat Richie Winick diamond ring and whispered his own version of sweet nothings in her ear.
"I love you," he said, per his radio show play-by-play. "You're everything to me. This is so gay...I'm asking you to spend the rest of your life with me."
After Ostrosky's affirmative reply, and the couple's consummation of the milestone, Stern said he phoned the father of the would-be bride to ask permission for her hand. He agreed, with one caveat: "Never call me Dad."
Stern, who has repeatedly claimed on his morning radio show that he would never get married again, added that no wedding date has yet been set, but that he anticipates a very long engagement.
It will be the second marriage for Stern and the first for Ostrosky, a Pittsburgh native who ranked as high as 34 on FHM magazine's list of 100 Sexiest Women. Her credits include small roles in Flirting with Disaster with Ben Stiller and Whipped with Amanda Peet, and she most recently appeared as host of the G4 series Filter.
Stern and Ostrosky met in 2001, a year after Stern separated from his wife of 20 years, Alison.
The couple currently live together in an apartment on Manhattan's Upper West Side and share custody of Stern's three daughters from his first marriage.
from: Reuters news
WASHINGTON (Reuters) - The Federal Communications Commission said on Wednesday licenses held by XM Satellite Radio Holdings Inc. and Sirius Satellite Radio prevent them from combining, but one industry expert said they could ask for the licenses to be modified.
"There's a prohibition on one entity owning both of those licenses," FCC Chairman Kevin Martin told reporters during a news conference after an agency meeting. However, Martin also said the FCC would examine any transaction submitted to it.
Wall Street analysts have speculated about a possible combination of the two providers and the stocks have risen sharply in recent weeks.
XM and Sirius could ask the FCC to modify their licenses to permit a combination, according to David Kaut, an analyst at Stifel, Nicolaus & Co.
"If the FCC wants to permit (the merger), based on the totality of their public-interest analysis, they would lift the prohibition," Kaut said. "If they don't want to approve, they'd probably keep the rule."
Both Sirius and XM are growing rapidly, but losing money as they try to improve technology and pay for top entertainment ranging from the largest U.S. sports leagues to celebrities such as Howard Stern, Oprah Winfrey and Martha Stewart.
XM shares were down more than 8 percent at $15.74 while Sirius shares fell more than 6 percent to $3.90 in mid-afternoon trading on Nasdaq.
from: Forbes.com
Now more than ever, analysts are sounding off on the possible merger of XM Satellite Radio and Sirius Satellite Radio.
On Tuesday, two more analysts altered their stock ratings on the speculation that the only two players in the industry could join forces.
JPMorgan analyst Barton Crockett upgraded XM and Sirius shares to “overweight” from “neutral.”
Banc of America analyst Jonathan Jacoby lowered his XM rating to “neutral” from “buy.”
Shares of XM edged up 2 cents, or less than 1%, to $17.14 in trading Tuesday. Sirius stock increased 1.2%, or 5 cents, to $4.15.
Both shares saw some of their best sessions late last week when XM’s management endorsed a possible partnership with its lone rival while being interviewed at the annual Consumer Electronics Show in Las Vega, Nev.
Crockett and Jacoby recognized there would be obstacles in gaining the necessary approvals from the federal government for XM and Sirius to strike a deal, but suggested these obstacles weren’t insurmountable.
“We believe XM and Sirius could potentially attempt a merger this year, with regulator approval a toss-up,” said Crockett in a note to investors.
“We see the most likely proposal as a stock-based merger of equals providing both companies’ shareholders an equal stake in the new company, consistent with the market’s current valuation of both companies, which are trading near firm value parity.”
from the NY Times
January 9, 2007
Howard Stern, who today marks his first anniversary on satellite radio, wasted little time over that period before setting off on an expedition deep into the wild, forested territories of a medium patrolled by neither the Federal Communications Commission nor, apparently, his own employer.
Listeners who have paid $12.95 a month to hear him on Sirius Satellite Radio have been treated to uncensored aural experiences like a standing bit in which he persuades a porn star or centerfold model (typically naked, sometimes in tandem) to climb onto a vibrating, mechanical contraption known as the Sybian. He (and they) then provide play-by-play commentary on their apparently escalating enjoyment — all over the roar of a motor as loud as a leaf blower’s.
Fans who, upon hearing these and other scenes described to them, have been seized by a desire to see what’s going on can do so too, for an additional $9.99 to $13.99 a month via Mr. Stern’s on-demand television channel, which is available on many cable and satellite television systems.
But one does not need to see Mr. Stern, or his supporting cast of producers and technicians and various hangers-on (long known to listeners of his former radio show as the “Whack Pack”), to hear them talk freely about topics like their apparent fondness for less conventional sexual practices — the very topics that once drew Mr. Stern steep F.C.C. fines — punctuated with locker-room language so colorful that it might make George Carlin blush.
“It’s free-form, free-flowing, one big party,” Mr. Stern said in an interview on Friday, in a tiny corner office adjacent to his studio in Midtown Manhattan that was virtually bare except for photos of his steady girlfriend, Beth Ostrosky, and two large bottles of Purel, the hand cleanser. “We’re talking about the stuff you can’t talk about. The show on terrestrial radio in the last 10 years had been so watered down,” he said. “Now it’s only great because of the freedom.”
Still, however obvious Mr. Stern’s enthusiasm, his argument prompts an immediate question: Having mined so much of his humor in the past from his frustration at butting up against seemingly insurmountable boundaries (variously thrown up by the F.C.C., and, before that, his wife, Alison, from whom he is now divorced), can he be as entertaining when no one is telling him that anything is off limits?
Mr. Stern says that he can, and that he has already been.
“I don’t know what it is in particular with my career,” Mr. Stern said, sprawling in an easy chair, his 6-foot-5 frame clad in leather jacket, stone-washed jeans and black work boots. “They wouldn’t say that about Chris Rock, that Chris Rock shouldn’t be in clubs, he should be on TV, because he would have restraint. For some reason people or critics latch onto this idea that I needed the F.C.C. in order to be funny. Which is ludicrous. I’m not funny because of the F.C.C.”
And yet Mr. Stern acknowledged that with no one else seeking to put the brakes on his show, it has occasionally fallen to him, in a vacuum, to do so. “There are times now when I’m the guy saying, ‘That went too far,’ which is a new role,” he said.
Pressed for an example, he recalled a regular staff meeting on a recent Thursday in which one cast member had made the following request: that Mr. Stern, as both the microphones and cameras rolled, knock him out with chloroform, strip him naked and replace his clothes.
“I said, ‘I’m not sure chloroform is legal,’ ” Mr. Stern recalled saying. “ ‘I don’t know if it kills you.’ I said, ‘Wait a second, I’m not going there.’ ”
The material that has passed Mr. Stern’s own personal litmus test — including the broadcast of a version of the children’s game ring toss, only this one involving meat balls and women’s bare bottoms — is being heard by a much smaller audience than Mr. Stern had before departing free radio in the fall of 2005.
Where once Mr. Stern could boast of reaching 12 million listeners a day, Sirius’s overall subscriber base, while growing dramatically, is half that. At the same time Mr. Stern has relinquished his role on the front lines of the battle against government encroachment on free speech because the F.C.C. has no jurisdiction over satellite radio.
Asked if he missed being heard by so many or being talked about quite so much, Mr. Stern said that he was delighting in being part of “a start-up business.” Still, he sounded almost hopeful that his critics had not gone away.
“We’re still up against the wall,” he said. “There isn’t a day we don’t have a television report where someone says I’m a piece of garbage. There are so many angry mobs out there to have my head.”
A moment later, though, he said he would not miss the fights of the past, over issues like whether there was a place for indecency and foul language on the public airwaves.
“I never got into it to be the poster boy for the fight against the F.C.C.,” he added, while acknowledging that he had stoked that very image by marketing a series of tapes from his show that he titled “Crucified by the F.C.C.”
“I was really uncomfortable with this notion that I was going on the radio and sticking my thumb in the eye of Senator Brownback,” he said, referring to one of his bêtes noires, Senator Sam Brownback, a Republican from Kansas. “These people, these senators” — he paused to utter an expletive — “they were all sitting there like I was a personal attack on them, like I was doing this to defy mom and apple pie and corrupt our children.”
“I’m a comedian,” he said. “I just wanted to make people laugh in the morning.”
That may be. But asked if, now, there is at times little that distinguishes his show from that of the soft-core “Girls Gone Wild” video series (or even “Midnight Blue,” the longtime, soft-core chestnut of New York City public access television that had Al Goldstein as its host), Mr. Stern, of course, blanched yet again.
“I never thought Al Goldstein or ‘Girls Gone Wild’ was funny,” he said. “They’re salacious. But I don’t find any humor in ‘Girls Gone Wild.’ ”
“I’m not trying to tell you to come to satellite to hear a girl sit on the Sybian,” he said. “I’m telling you to come because the show is funny.”
As an example Mr. Stern relished how he had persuaded a guest known only as “Rappin’ Granny” — she was approaching 90, he said — to mount the Sybian, fully clothed and with her cane, to describe how it felt.
“Granny, can I increase?” he asked her, in reference to the power of the vibrations she was apparently feeling.
When she nodded, he instructed a producer, “Take it up to her age.”
On Friday he said he considered the segment a “human interest” feature, because it had led to a somewhat sober on-air discussion with her about “her generation and sex.”
“She didn’t know a thing about her private parts,” he said. “It’s great radio. You can’t do it on terrestrial.”
If he has any concern about how many people are tuning in to hear or see such bits, Mr. Stern can surely take comfort in thoughts of his bank account these days, though, there again, he said, “I didn’t do this for the money.” As it stands, he is paid $100 million a year by Sirius, which is meant to cover not just his salary but those of his staff, and to produce programming on two like-minded satellite radio channels, known as Howard 100 and Howard 101.
Though Sirius’s stock price has plunged in the last year — to $3.76 yesterday from $6.57 on the day he started — he has instead sought to emphasize another number, the increase in the company’s subscriber base over that same year: to 6 million from 3.3 million, a net gain 2.7 million, or 82 percent. (In Demand, a private company that distributes his pay television channel, has not released subscription figures.)
Asked if he would ever entertain returning to free radio when his contract is up in four years, Mr. Stern, who turns 53 Friday, said he would not.
“I swear to you on a stack of Bibles,” he said. “Load me with truth serum. I would never go back to terrestrial radio. This is it for me. This is where I will end my broadcast career.”
from: Yahoo.com
January 3, 2007
NEW YORK (AP) -- Shares in Sirius Satellite Radio Inc. surged Wednesday after the satellite radio operator said it met its year-end subscriber target and likely generated positive free cash flow in the fourth quarter.
Sirius added 26 cents, or 7.3 percent, to $3.80 in midday trading on the Nasdaq, where the stock has ranged from $3.50 to $6.82 in the past year.
Late Tuesday, the company said it finished the year with more than 6 million subscribers, reaching the midpoint of its target of 5.9 million to 6.1 million. In December, the company cut the forecast from 6.3 million, citing weaker-than-expected retail sales.
Sirius still lags industry leader XM Satellite Radio Holdings Inc., which targeted 7.7 million to 7.9 million subscribers by the end of the year, but Sirius has been closing the gap in recent quarters. XM shares jumped $1.08, or 7 percent, to $15.53, most likely on the expectation that it, too, reached its subscriber target, analysts said.
Also, based on preliminary fourth-quarter financial results, Sirius believes it reached positive free cash flow for the first time, something XM has already done. Free cash flow represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. Free cash flow is important because it allows a company to pursue opportunities that enhance shareholder value.
But analysts were lukewarm in their response to the news.
"With year-end subscribers in the targeted range, we don't see (the) news as any new reason to buy or sell shares of Sirius," Goldman Sachs analyst Mark Wienkes said in a note to investors Tuesday.
Bear Stearns analyst Robert S. Peck reiterated his "Market Weight" rating on the stock after noting that the subscriber and free cash flow results were generally in line with his expectations.
Wednesday's share-price gains helped Sirius regain some of the 8 percent it lost in the fourth quarter, mostly on the lower subscriber guidance. The stock touched its 52-week low last Wednesday.
The analysts warned that they expect retail sales, where Sirius has a 58 percent share, to continue to weaken in 2007. Radios installed in new cars are expected to drive subscriber growth as carmakers increase the number of models that come standard with the receivers. In that market, XM has exclusive deals with companies that make about 60 percent of the vehicles sold in North America, giving it an advantage over Sirius.
from Frobes.com
This has been one tough year for investors in satellite radio, but the tide is turning. For the first time this year, XM Satellite Radio's quarterly conference call, on Nov. 6, contained no disappointments, so XM shares surged due to short covering. Sirius Satellite Radio has also traded higher in November. As a company, Sirius has performed very well all year, beating and raising estimates as 2006 has progressed, but its stock has been dragged lower by XM's problems. Now, the Christmas selling season holds the key to redemption for both companies.
XM has experienced unending turmoil this year. Two directors resigned, one with great fanfare in the first quarter, saying that he thought the company was heading off a cliff if it didn't mend its ways; another resigned in the third quarter, but in a less flashy way. XM has guided subscriber goals lower three times during the year, even as Sirius raised subscriber expectations ever so slightly. XM began the year expecting over 9 million subs by year's end. That number is now a much lower 7.7 to 7.9 million subs. Sirius started out predicting 6.1 million subs and now expects 6.3 million.
To solve its appearance of disarray, XM named Nate Davis chief operating officer on July 24. A very disciplined executive, Davis has clearly addressed XM's most pressing problems and imposed rigorous cost controls. Some analysts are starting to recommend XM's stock, or at least take it off their "sell" lists. XM remains the larger company in the satellite radio duopoly, but Sirius is rapidly catching up.
Because XM was first to market, it has been selling units for a year or two longer than Sirius. That pushes XM further down the cost curve with regard to its chipsets, especially those built into cars coming down the assembly line today. A chipset that is one or two generations more refined is much cheaper to manufacture. That shows up dramatically in SAC, or subscriber acquisition costs, the one area in which XM is far ahead of Sirius ($65 for XM and $114 for Sirius in the latest reported quarter).
XM's management recently provided a very conservative estimate of fourth-quarter revenue, lower than that of the third quarter. Unless they expect to lose a lot of existing customers, that estimate doesn't make a lot of sense to me. Perhaps it is a low-ball number the company is sure it can exceed in this biggest selling season of the year.
During the year, XM undertook several refinancings to extend the maturities of its debt and to restructure and improve its balance sheet. Also of importance, XM has operated with two co-located satellites, XM-1 and XM-2, at 115 degrees west longitude and a third one at 85 degrees west longitude. On Oct. 30, XM successfully launched its XM-4 satellite to a transfer orbit, from which it will be moved to replace XM-1 and XM-2. The first two will remain in orbit as spares. Since not all launches are successful, it is good that the satellite is up and communicating with the ground, removing another concern.
While still lagging in car factory installs, Sirius has surged at retail outlets since hiring Howard Stern, who has enhanced Sirius' brand recognition dramatically. Recently, Sirius offered a free two-day promotion of Howard to draw attention to the fact that you can receive Sirius on the Internet now. The two-day free offer was similar to what Showtime or HBO do from time to time to attract new cable customers. Sirius is also now using TV ads.
Both companies offer one free password per $12.95-a-month subscription to access radio content over the Internet, and $6.99 per additional subscriber, which includes another encrypted log-in to the Internet. Both companies are restricted their online content to only those channels they have created themselves or for which they control the copyrights. That excludes rebroadcasts of some third-party programming, such as news, weather and financial services. XM offers more than 170 channels, including Major League Baseball, and Sirius offers more than 130 channels, with all the National Football League games.
Driving new customers to Sirius are the impending addition of two important affinity groups, NASCAR in January and The Catholic Channel in the fourth quarter, each with the potential to draw huge numbers. Sirius is set to launch a major holiday push at Wal-Mart Stores, where a lot of those NASCAR fans do their shopping; Wal-Mart will sell at least one Sirius receiver model for less than $30.
To date, XM is the clear leader in the automotive market, due to its early relationship with General Motors. XM is also factory-installed in vehicles by Porsche, Honda Motor, Toyota Motor, Nissan Motor, Suzuki, Isuzu Motors and Hyundai. The initial XM promotion covers only three free months. After that, about 52% of car owners re-up to retain the service. That has driven churn much higher for XM than for Sirius. If someone goes into a retail establishment to purchase a satellite receiver, they are doing so because they want one, not because the car came with it.
To combat XM's higher auto churn and to learn from XM's experience, Sirius has set about promoting much longer subscription packages of one or more years from the outset with the car manufacturers who feature Sirius. Chrysler, for example, shows a one-year subscription on the sticker for its Sirius-enabled cars. Sirius is paid in advance for these subscriptions; they appear on the balance sheet as deferred revenues and are taken into revenues each month as earned that first year.
As for the holiday season, Sirius grabbed 500,000 new subscribers in only the last ten days of December 2005 and 1.2 million for all of its 2005 fourth quarter, when many stores sold out. It hopes to match those numbers this year. If it does, it will sell twice as many units as XM this quarter. Satellite radios are great, inexpensive holiday gifts and the market is still in its infancy. With over 230 million cars on the road and only 14 million estimated year-end satellite subscribers, a vast market awaits.
If Sirius is successful in adding 1.1 million new subscribers in the fourth quarter, it will have added more than 3 million new customers this year, dramatically outpacing XM's expected gain of 1.9 million new subscribers. Both companies expect to report positive cash flow for the fourth quarter, driven by sign-up promotions that must be used by Dec. 31. I would expect both companies to drop below cash flow break-even in the early quarters of 2007, although Sirius has said repeatedly all year that it expects to be cash flow break-even for all of 2007 and needs no further financing.
While we do continue to believe there is room for both companies and that both will succeed long-term, Sirius remains the stock we own and the one we prefer because it is executing on all cylinders. Some firms limit portfolio managers to only stocks over $5. Once Sirius exceeds that level, we think many fans of satellite radio will buy it. Now, our best hope is for a happy holiday season!
Joan E. Lappin is chairman and chief investment officer of Gramercy Capital Management.
from Reuters
By Steve Gorman
LOS ANGELES, Oct 15 (Reuters) - Ten months after leaving the commercial airwaves for subscription-based Sirius Satellite Radio, shock jock Howard Stern is out to attract a broad new online audience with his first-ever free Internet broadcast.
Stern's four-hour-plus program will be made available live online at no charge for two days, Oct. 25 and 26, to promote an Internet radio service Sirius
The new service offers more than 75 channels of CD-quality programming over the Internet -- without the need to buy a Sirius satellite receiver -- for a monthly subscription fee of $12.95, the company said in a press release.
The service can be accessed by logging on to the Sirius Web site, www.sirius.com.
The two-day free trial of "The Howard Stern Show" marks the first time he has been available to a non-paying audience since he left terrestrial FM radio in December 2005.
After next week's promotion, fans will once again have to pay to hear the self-proclaimed "king of all media," either by subscribing to Sirius or its Internet service.
Stern's show and other Sirius programming had been available on the Internet before, but only to existing customers who had purchased a satellite receiver in addition to the $12.95 monthly radio subscription.
Under the new stand-alone Internet package, users anywhere in the world can subscribe and listen to Stern online without first having to buy satellite hardware, which is sold only in North America, a company spokesman said.
from Radar Online
Howard Stern's words may not carry the same weight now that he's on satellite radio, but he's still got enough juice to get a pesky critic fired. John Mainelli, the New York Post writer who irked Stern by reporting a rumor that he would return to terrestrial radio with his tail between his legs on Tuesday, has left the paper after receiving an ultimatum from editor in chief Col Allan.
Allan told Mainelli Wednesday that he had to choose between his freelance job covering the radio industry for the Post and his lucrative sideline consulting for radio stations and owners. "I consider myself fired," Mainelli tells Radar. "I can't live on what I earn from the Post."
Mainelli claims he has made no secret of his consulting relationships in the nearly eight years he's worked at the paper and has always been careful to recuse himself from stories that might present a conflict of interest. But Allan, according to a Post spokesman, was not aware of the arrangement, and would have put a stop to it long ago had he known. Stern has been waging war on Mainelli since Tuesday, when Mainelli reported on speculation that Stern might cut a deal to get part of his broadcast back on terrestrial radio. (Since Stern left CBS in January, his show has only been available to Sirius subscribers.)
Though Mainelli was merely picking up a report from Inside Radio, an industry trade, Stern chose to blast him rather than the source—probably because Mainelli spiced up his story with other damaging details, such as a rumor that Stern was having trouble booking high-profile guests and had lost popularity as an Internet search term. Stern's Howard 100 news team called attention to Mainelli's consulting ties on air, and their reporting was picked up by journalism blog Buzzmachine.com.
Asked whether he's feuded with Stern in the past, Mainelli says, "He's feuded with me," over the number of subscribers Stern has brought to Sirius, among other issues. Nevertheless, Mainelli claims he's been a fan of Stern's—until now.
"I'm very disappointed, and I'm really pissed at Howard Stern," he says. "From now on, anything I write about him will have to have a disclaimer: John Mainelli has an ax to grind against this man."
from Forbes.com
The return of the king?
The radio industry has been abuzz as media reports hinted that Howard Stern considered going back to free, censored radio.
Scuttlebutt suggested that the blue-talk maestro was weighing a syndication deal that would keep his current gig at Sirius Satellite Radio, while allowing for a clean (i.e., heavily bleeped) version of his show to be aired on nonpay radio.
The logic behind the rumor: When he worked for old-Viacom unit Infinity Broadcasting, Stern had been undisputed master of the traditional radio domain. His egoistic self-description as the "king of all media" was hard to deny: instantly recognizable beyond his devoted fan base, he'd leveraged his talk show into several autobiographical books and a movie, Private Parts. Not to mention ranking No. 7 on the Forbes Celebrity 100 list.
But in his current gig on Sirius, Stern's fame has experienced significant shrinkage.
The numbers of his faithful fans signing up for Sirius service have dwindled from the enthusiastic tsunami that followed his initial jump, in January of this year, to a mere trickle -- narrowing but not quite closing the subscriber gap with market dominator XM Satellite Radio. At last count, XM boasted 6.9 million subscribers to Sirius' 4.7 million.
And if Sirius and its Chief Executive Mel Karmazin are upset with the subscriber slowdown, Stern must be in a tizzy: Greta Garbo may have "vanted to be alone," but 21st century celebrities require attention. Reports say Stern's guest bookings are drying up, and visits to the one-time media king's Web site are few and far between.
The most likely bidder for Stern's censored services: Farid Suleman, CEO of Citadel Broadcasting. Suleman, who worked with both Stern and Karmazin at Infinity, engineered a pact to buy the Walt Disney Co.'s languishing ABC Radio. ABC could certainly use a boost like Stern. And Suleman has experience: Citadel carries a clean version of XM's rambunctious Opie and Anthony Show. The duo and XM inked a syndication deal that let them whip up marketing buzz via free broadcasts, with the idea that they would then draw in subscribers who would want the spicier satellite version.
But Stern, who long accused Opie and Anthony of aping his routine, had vowed never to return to free radio. Late on Tuesday, Stern reiterated his disgust for nonpay broadcasting -- in terms certain to infuriate his rivals.
"I don't do 'Opie & Anthony,'" Stern declared on his Sirius show. "'Opie & Anthony' do me."
Patrick Reilly, a Sirius spokesman, said, "There has never been any discussion of Howard Stern in any way, shape or form being anything but exclusive to Sirius. ...Published reports suggesting otherwise are wrong."
Suleman has also denied any such Stern syndication talks have taken place. But industry observers won't be shocked if the jock resurfaces on FM.
Sirius stock was up 3.6%, or 14 cents, to $4 on Wednesday afternoon. That may be a reaction to the Sirius denial that Stern would be found anywhere else, or it may reflect the broadcaster's deal to create a new channel with New York's Metropolitan Opera. In any case, it has certainly got high and low culture covered.
from Motley Fool.com
By Rick Aristotle Munarriz
There was a fire to put out at Sirius. A story in yesterday's New York Post helped amplify a report in Inside Radio that suggested that the fast-growing satellite radio provider was in talks with Citadel Broadcasting to air part of the iconic Howard Stern show on terrestrial radio.
The deal would have mirrored the move by XM Satellite Radio as it spread the shock jock wealth by syndicating a chunk of its Opie & Anthony franchise to a hit-needy CBS. As it stands now, XM's High Voltage channel runs the five-hour morning show, but the first three hours are cleaned up and simulcast through conventional CBS radio stations.
The problem? According to Sirius, it's not true. The company is going to be very protective of its Stern franchise, and it has little reason to fortify the medium that it's seeking to supplant.
Good move. Even if Stern commands a smaller listening audience and is a less sought-after Internet search, he's still the marquee brand in radio broadcasting. Besides, according to Alexa.com, Stern's Web page is still far more popular than that of other radio celebrities like Rush Limbaugh, Al Franken, and Opie & Anthony.
Over the past three quarters, Sirius has landed more net new subscribers than the larger XM. That created the incentive for XM to get Opie & Anthony back on old school radio. Giving mainstream audiences a taste, serving up its two stars on toothpicks like a Chik-fil-A sample at the mall food court, is an interesting experiment to win back momentum.
Stern and Sirius don't need to play that game. Love him or hate him, when it comes to Stern, odds are that you haven't forgotten him. So stick to your guns, Sirius. If anything, kudos for finding one more way to get Stern's name back in the papers.
Rick recommended XM to Rule Breakers subscribers last year.
from the NY Post
September 20, 2006 -- Howard Stern and Sirius Satellite Radio are denying radio-industry rumors that Stern will "do an Opie & Anthony" and return to terrestrial radio while continuing to also be space-delivered.
"I don't 'do Opie & Anthony,' " Stern told listeners yesterday. "Opie & Anthony do me." Sirius spokesman Patrick Reilly said Stern "is thriving on Sirius Satellite Radio.
"There has never been any discussion of Howard Stern in any way, shape or form being anything but exclusive to Sirius," Reilly said. "Published reports suggesting otherwise are wrong."
Stern did say, however, that he has "received three offers to go back to terrestrial radio from three different companies [that] asked me not to mention who they are and what the deal was.
"Why would I? I've probably got 4 million people already [The Post estimates about 1 million] who paid 13 bucks a month to hear me," he claimed.
"Why would I go on free radio and ruin it?"
Also denying reports that he's talking to Sirius about Stern - but declining to say he wouldn't - is Citadel Broadcasting chief Farid Suleman, a longtime associate of Stern and Sirius CEO Mel Karmazin when all three were at Infinity/CBS.
Suleman is about to take control of Disney/ABC's radio division and could use a proven draw like Stern to reverse the sagging fortunes of the ABC stations and network.
from CBS News Marketwatch
CHICAGO (MarketWatch) - Sirius Satellite Radio on Tuesday denied speculation that Howard Stern might be headed back to traditional radio.
"There has never been any discussion of Howard Stern in any way, shape, or form being anything but exclusive to Sirius," said Sirius spokesman Patrick Reilly, in a statement. "Published reports suggesting otherwise are wrong."
A New York Post report said Stern, who bolted to Sirius early last year after more than two raucous decades as a top-rated morning host on Infinity Radio, was concerned that he had lost impact as a performer since his move to satellite radio, and that a deal between Sirius and terrestrial radio group Citadel Broadcasting might have allowed him to return to the free airwaves.
Stern went to Sirius in January 2005 after hyping that jump for months on his Infinity (now CBS) Radio program.
Shock jocks Opie & Anthony have an agreement with both XM Satellite Radio and CBS Radio, owned by CBS Corp.
Opie & Anthony also do a three-hour CBS Radio broadcast from 6 A.M. to 9 A.M. Eastern time in several markets. That program is simulcast, uncensored, on XM. The duo then broadcast their exclusive, more risqué XM show from 9 to 11.
The arrangement is designed to entice new listeners to XM and reacquaint many CBS listeners with Opie & Anthony, who previously had a show on that company's stations before being fired in 2002.
Stern's switch to satellite not only lifted awareness of Sirius, but that of rival XM as well, signaling that the medium could attract marquee talent.
Sirius shares dropped 6.1% to close at $3.86 Tuesday on massive volume of 61.1 million shares, while XM fell 4.1% to close at $13.31.
LOS ANGELES, Sept 19 (Reuters) - Sirius Satellite Radio said on Tuesday that reports suggesting that shock jock Howard Stern was planning a return to mainstream radio were "wrong."
"There has never been any discussion of Howard Stern in any way, shape, or form being anything but exclusive to Sirius. Published reports suggesting otherwise are wrong," said Sirius spokesman Patrick Reilly. Stern's agent was not immediately available for comment.
The New York Post, citing Inside Radio editor Tom Taylor, reported on Tuesday that there were rumors among radio insiders that Howard Stern may be planning a return to free airwaves.
Reilly said there had also been an earlier report in Inside Radio newsletter.
Stern moved to Sirius in January with a five-year deal valued at $500 million after leaving CBS Radio, a unit of CBS Corp., which was spun off from Viacom Inc.
The newspaper article said industry talk suggested that a mega-deal was brewing among Stern, Sirius Chief Executive Mel Karmazin and Farid Suleman, a long-time Karmazin associate whose Citadel Broadcasting Corp. is buying ABC Radio from Walt Disney Co.
Karmazin, Viacom's former president, was a staunch defender of Stern when the radio host's off-color humor and sexually explicit remarks drew fire from U.S. regulators.
September 19, 2006
from the NY POST
Howard Stern may be coming back to earth - on WPLJ or WABC. Radio insiders are reporting rampant rumors that the shock jock will "do an Opie & Anthony" and return to old-fashioned radio from the obscurity of satellite radio.
Persistent industry chatter says "some sort of mega-deal's brewing among Sirius [Satellite] chief Mel Karmazin, Stern and Mel's longtime associate Farid Suleman," says Inside Radio editor Tom Taylor. Suleman currently runs Citadel Broadcasting, which is buying Disney/ABC's radio division, including WPLJ (95.5 FM) and WABC (770 AM). In his widely read tradesheet, Taylor said the rumors "just won't die, despite what Stern and Sirius have said in the past." This much is certain: Stern has complained loudly of late about published reports that he's lost his influence and is no longer a "watercooler topic" since he bolted from CBS for Sirius in a $500 million deal last January.
His celebrity-guest bookings have all but dried up and sidekick Artie Lange's new movie "Beer League" bombed over the weekend in spite of heavy hype on Stern's show. The Post's Page Six reported last week that since his move to pay radio, traffic to Stern's Web site was down a whopping 71 percent and his search-engine action plunged a staggering 90 percent. "Terrestrial radio is so scared of this broadcast that they've even hired a full-time publicist to slander and disparage me and try to make me look like a failure," Stern told Sirius listeners last week.
Updated Wednesday August 23, 2006 Retail Sales Maintain Sluggishness - First Look at a Fall Forecast Bridge Ratings' trending of Satellite Radio subscribers continues through 2006. The purpose of this on-going study Bridge Ratings interviews consumers at retail outlets who have purchased Satellite radio. Consumers are interviewed when
entering audio departments to determine their purchase intent and then again post-purchase. By matching pre-purchase interest
against actual purchase, we are able to determine: a) brand potency and b) brand awareness-to-purchase effectiveness, i.e. the brand's
ability to convert awareness to purchase. In recent weeks programming options and equipment style and benefits have been
taking a stronger position as the impetus for the purchase decision with Sirius more consistently being sited for its programming
content and equipment as motives for purchase. This Week's Update: While sales at retail for satellite radio remain slower than earlier this year, there are signs of slow improvement as Fall approaches
We've been tracking for you the number of stores utilized to achieve our weekly goal of 4000 interviews related to satellite radio
purchases. Typically, Bridge Ratings averages 40 retail locations throughout the U.S. for the purposes of in-store interviews. We
rely on in-store traffic for these numbers. The following chart represents the number of stores have beenrequired each week in order for
us to attain our goal of approximately 4000 completed interviews. This week's estimates are based on 45 stores: As you can see, traffic volume is improving weekly as we approach the end of August. In-store traffic related to satellite radio maintains a soft demand market. Sirius and XM share of retail purchases continue to pace as they have in recent weeks with this week's data showing Sirius
back to a more typical 61 share of the retail sales we monitored. Renewals This month Bridge Ratings has begun to interview satellite radio consumers who have been subscribers for more than six months and less than one year to determine renewal rates. We originally delineated a group of 1200 of these subscribers into two groups: a) satellite subscribers who purchased systems at the retail level and b) subscribers generated through OEM or auto dealership acquisition, i.e. subscribers to satellite radio whose initial access to satellite radio was through new vehicle purchase in the last year. This week we added an additional 1200. OEM subscribers, in most cases, told us they received a minimum of a three month to a maximum of a three year free trial subscription to their service. At the conclusion of their free trial period, these satellite subscribers began paying their monthly subscription fees as part of their vehicle payments. Retention of subscriptions for these groups is very different according to our interviews this month. 1200 subscribers for each category were interviewed. Among retail subscribers, 78% indicate they will renew their subscriptions - a highly loyal rate. Among OEM subscribers, 54% indicate they will renew. Full Year Projections Based on current pacing results and our continuing in-store interviews, Bridge Ratings projects XM total subscriber count will end the year
at 8.1 million and 6.5 million for Sirius. Projections are updated quarterly. As of this date, Bridge Ratings estimates that original
industry projections of the increase in total 2006 satellite subscriptions of 6 million will be closer to 5.5 million with Sirius maintaining Due to the nature of the satellite radio retail sector, we expect these estimates are likely to change somewhat by year-end. Among these consumers, this week brand awareness for the two satellite radio products continues to favor Sirius. Sirius scored another strong week for satellite system purchases over performing its brand awareness: The above table measures strength of brand against actual retail purchase. An index above 1.00 indicates a positve retail strength compared to brand awareness. The Stern Effect The "Stern-Effect", a term coined to reflect the subscription growth impact attributed to personality Howard Stern joining Sirius, is showing
signs of renewed strength after softening earlier this year and continuing to slow through the second quarter. Our latest estimate
is that a total of 1.45 million (12%) of Stern's total terrestrial fan base has migrated with him to Sirius. Perhaps more interesting is that Bridge Ratings estimates that 2.4 million of Howard Stern's terrestrial audience (20%) were Stern's most
loyal listeners and that Stern has converted 50% of them (1.2 million) to join him. Sirius intends to step-up Stern's marketing during the second half
of this year in an effort to convert more Stern fans to his satellite show. Bridge Ratings views the unconverted 50% of Howard Stern's core fan
base as the prime group to pursue as they will be less costly to acquire than the 80% of Stern's terrestrial audience who were categorized as "listened occasionally" or "listened frequently". In interviews potential Stern subscribers are showing a renewed interest in subscribing to Stern's on-line stream offered by Sirius. Based on these
interviews we expect that by the end of Q1 2007 an additional 1 million Stern fans will subscribe to hear his show via the Internet. Stern as a marketing pillar solidified the Sirius market position and regardless of fewer Stern fans migrating to satellite, he is stimulating market
awareness of Sirius. The following chart represents Bridge Ratings' Stern-motivated subscriptions since October 2005. August estimates will be published in September. Based on this data we estimate that approximately 25% of Sirius' second quarter subscriptions were directly linked to Stern. In a separate on-going study of satellite radio, Bridge Ratings this week interviewed 1200 former Stern listeners who we identified as "heavy Howard Stern listeners" to his terrestrial radio show but have not yet converted to subscribe to the service (heavy listening is defined as any former listeners to Stern's terrestrial broadcasts who had spent a minimum of ten hours a week listening to his terrestrial radio show). The following chart is an overview of this group's responses to the question "Why have you not subscribed to Sirius so you can continue to hear the Howard Stern show?" Consumer purchase motive for each service: Sirius Preferred Programming Q: "What was the primary reason you purchased
a satellite radio system today?" The above chart has been able to predict future behavior that we see in Brand & Retail Strength chart above. Trending in this chart has been positive
for XM and we anticipate improved retail performance for XM heading in to the fourth quarter.
Based on this week's interviews with non-subscribers to satellite radio, but who have told us in the past they intend to subscribe at some time in the future, the following represents our initial retail estimates for the fourth quarter:
Bridge Ratings continues to release updates on our retail interviews through the third quarter. *Based on interviews conducted
at retail outlets between January 1 and August 21, 2006. Retail outlets vary by week but may include Best Buy, Circuit City, Sears, CompUSA, Target, Staples and Sam's Clubs stores. Markets surveyed: Los Angeles, San
Diego, Phoenix, Boston, Detroit, New York, Boston, Chicago, Dallas.4000 weekly
listeners 18+.
from Reuters
WASHINGTON (Hollywood Reporter) - In its continuing crackdown on on-air profanity, the FCC has requested numerous tapes from broadcasters that might include vulgar remarks from unruly spectators, coaches and athletes at live sporting events, industry sources said.
Tapes requested by the commission include live broadcasts of football games and NASCAR races where the participants or the crowds let loose with an expletive. While commission officials refused to talk about its requests, one broadcast company executive said the commission had asked for 30 tapes of live sports and news programs.
"It looks like they want to end live broadcast TV," said one executive, who spoke only on the condition of anonymity. "We already know that they aren't afraid to go after news."
NO SLIPS ALLOWED
While live programming always has been problematic for broadcasters, it has become even more difficult under tougher commission rules approved in 2004. The new rules found that virtually any use of certain expletives will be considered profane and indecent, even if it is a slip of the tongue. In a March decision, the FCC found that the CBS news program "The Early Show" violated its indecency rules because of a profane slip-up but did not issue a fine because the incident occurred before the new rules were instituted.
Live sports -- amateur, college and professional -- have long been a broadcast programming staple. Broadcasters have spent enormous amounts of money and energy to come up with ways to give audiences a better feel for the action. As broadcasters vie for viewers, technical advances that include such things as on-field microphones and in-car cameras have become as important as the announcers.
"I don't know how they are going to rule, but they asked us for tapes with a specific emphasis on crowd noise," said another TV executive, who also requested anonymity. "If some bozo in the crowd calls the ref an asshole, the commission is asking for a copy of the tape."
A live, on-field event -- albeit when no athletes were on the field -- during the 2004 Super Bowl halftime show, when Janet Jackson's breast was accidentally bared, helped reignite Washington's interest in the indecency issue. Since then there has been a highly charged fight at the commission about just how far the commission can go in restricting broadcasts.
OPINION DIVIDED
Broadcasters last week split over whether the commission should be allowed to get one of the premier indecency cases back from the federal court in New York.
In a series of motions filed Friday in federal court in New York, Fox and its affiliate group, CBS and NBC opposed an attempt this week by the FCC to get a key indecency case back from the court.
The commission this month asked the same federal court for more time to consider affiliates' arguments that the agency erred in March when it decided variations of the words "fuck" and "shit" likely are to be indecent whenever broadcast, even if the words are uttered accidentally.
A delay would let affiliates contest the decisions before the commission. The FCC contends that this is a necessary step before arguing in court. The agency said ABC, NBC and CBS affiliates backed its request.
Under federal court rulings and commission rules, material is indecent if it "in context, depicts or describes sexual or excretory activities or organs in a patently offensive manner as measured by contemporary community standards for the broadcast medium." Indecent speech can be aired safely between 10 p.m. and 6 a.m.
Under a new law approved by Congress and signed by President Bush, broadcasters face fines of as much as $325,000 per violation, up from a previous maximum of $32,500.
In order to manage costs in a soft radio ad market and adjust to an increasingly competitive media landscape, CBS Radio pink slipped 115 of its more than 8,500 employees across its 179-station radio station group. The cuts, representing less than 2% of its workforce, affected positions at all levels, from receptionists to general managers to back-room and financial administrators. Some of the cuts were made as a result of consolidated operations in markets such as Tampa.
Like all radio companies, CBS has faced a challenging if not stubbornly sluggish advertising market that is expected to continue through most of the year. In first quarter, CBS Radio revenue, due in part to Howard Stern's exit from 27 of the group's 179 stations fell 6% and operating income plummeted 13%; factoring out Stern, the other 152 stations were down by 1.5%. During its quarterly conference call, Les Moonves, president and CEO for CBS, called radio the company's "toughest story."
"The radio business is changing, and we have to change with it," said Joel Hollander, president and CEO in an internal memo to employees obtained by Billboard Radio Monitor. "There is increased competition for our listener's attention, and we must deploy our resources wisely and aggressively if we are to succeed and grow."
The reorganization and streamlining of the division is just one of the changes CBS is making in its group, including format and programming changes and trimming its station portfolio by selling as many as 39 stations in 10 smaller markets.
Despite all the changes, Hollander reassured employeed that CBS was committed to the radio business. "These recent announcements actually reflect CBS's confidence in the radio industry, and in CBS Radio's ability to deliver superior results under a new, creative, lean model," Hollander wrote.
WCBS-FM general manager Chad Brown is among 115 staffers laid off Wednesday at CBS Radio in a national cost-cutting move. Brown, a veteran of 17 years at CBS, who also implemented the station's switch from oldies to the format "Jack" in June 2005, will have his duties assumed by CBS senior vice president Les Hollander.
Other cuts include CBS president of programming Rob Barnett, who was appointed in February 2005 and oversaw the hiring of David Lee Roth to replace Howard Stern in the morning.
from YAHOO! News
NEW YORK, June 26 (Reuters) - Sirius Satellite Radio Inc. Chief Executive Mel Karmazin said on Monday that he would like to buy arch-rival XM Satellite Radio Holdings Inc., but price and regulatory hurdles would be an issue.
Karmazin, speaking at a conference in New York, however stressed that Sirius' business plan "doesn't really involve our doing a deal" and indicated he wasn't interested in Sirius being bought.
"Regarding XM - would we like to buy them? Sure. We'd love to buy them. Price would matter, so that would be an issue ... (and) there would definitely be the regulatory issue," he said.
"From our point of view, we don't see -- other than if it was in the best interests of our shareholders -- that we would be interested ever in being acquired," Karmazin added.
June 22, 2006
from Yahoo! News
Shock jock Howard Stern is happy at last.
Six months after he jumped from the FM dial to the unbridled world of satellite radio, the broadcast rebel who ranted for years at censorship, government regulators and corporate bosses has finally found contentment.
"I tell you I'm at complete peace. I've never had more fun in my radio career than I'm having right now," Stern said in a recent interview with Reuters. "It's like a rebirth."
But the maverick long given to frequent fits of on-air rage insisted his contrarian edge remains intact despite breaking free of the Federal Communications Commission and settling a nasty legal feud with former overlords at CBS.
"I'm not some happy, smiley guy who goes into the studio every day (and says) 'Oh wow! Today's a beautiful day, and there's nothing bad to be said,"' Stern said. "I'd have to go through a lot more psychiatry before I could change the persona of negativity that I live in."
Much of his negativity over the years stemmed from battles with the FCC over his raunchy brand of humor. A pioneer of comedy bits like "Lesbian Dial-a-Date" and "Stripper Jeopardy," Stern stunned the broadcast industry in October 2004 when he announced he was leaving terrestrial radio for satellite.
Stern complained then that he had grown especially frustrated by the government's crackdown on sexually explicit content since Janet Jackson bared her breast on live television during a Super Bowl halftime show.
After fulfilling the last 14 months of his CBS Corp. contract, Stern debuted in January on Sirius Satellite Radio under a five-year deal valued at $500 million.
STERN UNFETTERED
The basic format of his show -- a freewheeling mix of in-studio banter, telephone calls from fans and interviews with the famous and freaky -- remains the same. So has Stern's preoccupation with sex and scatology.
By his own account, the biggest difference between commercial, over-the-air Stern and his reincarnated self at subscription-based Sirius is the "absolutely liberating" nature of his new home.
With sidekicks Robin Quivers and Artie Lange, plus a cadre of assistants, interns and quirky regulars collectively dubbed the "whack pack," Stern said he and his guests are free to be as provocative, and as profane, as comes naturally.
"I'm sitting back and having a blast because we're all talking, and no one is censoring themselves," Stern said. "I feel like I can be funny."
Stern may tout his newfound freedom to use four-letter words, but Michael Harrison, publisher of trade magazine Talkers, said Stern's popularity hinges on "his intelligence and his satire, not his profanity."
"So whether he's bleeped or not is ultimately irrelevant to his success, because being dirty on the radio does not get an audience. Being clever does."
Sirius currently counts 4.1 million subscribers and expects to sign up at least 2 million more by year's end, marking an 87 percent increase over its customer tally in late 2005. Sirius points to Stern as its biggest single draw.
SIRIUS BONANZA
While his Sirius audience pales in comparison to the 12 million listeners Stern commanded at the peak of his CBS career, a third of Sirius customers responding to a recent Jacobs Media poll cited him as a key factor in their decision to subscribe.
Analysts predict satellite radio overall will grow sharply with subscriber totals topping 40 million in a few years, much of that driven by "the Stern effect."
Larger rival XM Satellite Radio boasts 6.5 million users but recently lowered its year-end subscriber forecast from 9 million to 8.5 million.
Meanwhile, the self-described "King of All Media" also ventured recently into the realm of video-on-demand TV with an all-Stern channel available through several major cable operators. The so-called Howard TV On Demand features highlights of his daily Sirius radio show and uncut, previously censored moments from his old cable TV home, E! Entertainment.
Stern ruled out the possibility of his own return to terrestrial radio as "inconceivable."
"I'd have to go back to the old rules and regulations and censoring myself," he said. "I'm miles away from that. ... I just don't even want it in my life."
from BillboardRadioMonitor.com
A new technology poll from Jacobs Media says XM and Sirius are now equally popular, but the momentum — largely driven by Howard Stern — is shifting toward Sirius.
Overall satellite radio subscribership increased from 7% in 2005 to 12% in this year's survey of rock listeners. But when compared to other new media — Internet streaming, iPod ownership and usage, and cell phone applications — satellite radio remains a medium that is still in its infancy.
That's because the majority of respondents still like their radio free. In response to an "agree" or "disagree" statement -- "I will not pay for radio when I now get it for free" -- seven of every ten poll takers agree or agree strongly.
The Jacobs poll reveals a dead heat between Sirius and XM — both are tied with 6% each among all respondents. Not surprisingly, men are more apt to subscribe to either service, as are 30-39 year-olds, college grads, and those with a household income of $100,000 and more.
Interestingly, the reasons current satellite radio subscribers selected either XM or Sirius were largely driven by the programming and marketing strategies that each company has employed.
For XM, the top reasons for signing up are the music channels (24%), commercial-free programming (14%), the belief that XM is good while traveling (12%), and because it came with the vehicle that they purchased or leased (11%).
Sirius subscribers, on the other hand, were heavily motivated by the arrival of Stern. Overall, one-third (32%) of those who now pay for Sirius list him as the key factor in their decision. Other reasons include the music channels (19%), and commercial-free programming (12%).
The vast majority of satellite radio subscribers in the survey are pleased with XM and/or Sirius, according to the survey. Seventy-five percent say they're satisfied or very satisfied, while only 8% express some level of dissatisfaction.
Jacobs' poll was conducted in Feb. 2006, among more than 25,000 respondents/listeners of 79 different rock stations.
For more information go to www.jacobsmedia.com
from the NY Post
June 4, 2006 -- After years of trading in near lock-step, the country's two giant satellite radio companies appear ready to put some space between them.
Sirius Satellite Radio, lifted in large part by Howard Stern joining its ranks, has been hitting its subscriber-growth targets and doing everything right in the corner office, while rival XM Satellite Radio has been hit with a litany of negative issues.
At the same time, Sirius has been none to shy in pointing out to investors that those issues aren't affecting them.
During the month of May, Sirius' stock price declined only 5 percent to $4.41 while XM's dropped a more precipitous 21.5 percent to $14.69.
"We seem to be at the inflection point where more and more attention is being paid to Sirius and XM as individual companies," said The Carmel Group's Jimmy Schaeffler.
Of course, Sirius has helped nurture that view among investors by countering the bad news from XM with positive announcements.
Only hours after XM announced on May 24 a reduction in its 2006 subscriber guidance, to 8.5 million from 9 million, Sirius put out its own release reaffirming that it will hit its target of more than 6.2 million subscribers at the end of this year.
Since then, Sirius' stock has gained 18.8 percent, or more than three times as much as XM's has.
And where XM cited an overall softness at retail for its reduced subscriber outlook, Sirius made a point of throwing cold water on that rationale during a Sanford Bernstein conference last week.
"Recently, there's been some noise in the market about softness in retail," said Sirius CFO David Frear. "We don't really see softness for us in retail. We see our market share up substantially."
To be sure, while XM holds a 60-40 market share lead in automobile installations, Sirius holds a 58-42 year-to-date retail market share advantage, according to research firm The NPD Group.
The recent differences between Sirius and XM extend beyond subscriber numbers and sales trends to include product launches, lawsuits and management credibility.
On all of those fronts, Sirius has shown a better ability to eliminate or reduce both operational and non-operational distractions, according to Oppenheimer analyst Tom Eagan.
While Sirius plans to roll out its wearable satellite radio/MP3 device in the third quarter, for example, XM had to delay its similar Inno unit until this month.
Once it hit the market, however, the Recording Industry Association of America slapped XM with a copyright infringement lawsuit that seeks $150,000 in damages for every song digitally recorded on the device.
Where Sirius settled a similar lawsuit over its new S50 device by agreeing to pay a licensing fee for each unit sold, XM and the music industry have yet to reach an accord on the issue.
Less important from a financial perspective but more important to investor perception is the stock market moves of Sirius CEO Mel Karmazin and XM boss Hugh Panero.
Last week Karmazin spent $4.5 million of his own money to acquire 1 million Sirius shares on the open market - the second time he's done that this year.
By contrast, Panero has not bought any XM shares in the last 12 months. Indeed, in December, Panero sold 413,334 XM shares, or about 17 percent of his entire stake in the company.
The 6.5 million Sirius shares owned by Karmazin triple the amount Panero holds in XM. That prompted Bear Stearns analyst Robert Peck to say in a recent report that [XM's] management credibility has been severely tarnished over the last six to nine months.
"We think the market has lost faith, and unfortunately, what used to be XM's premium over Sirius (confidence in its management) has been eroded," adds Peck.
If the divergent path of Sirius stock continues, XM's share price premium may soon be eroded as well.
from MotleyFool.com
A gargantuan lawsuit that commanded business and entertainment headlines just months ago was settled rather unceremoniously last week, when CBS agreed to drop its case against radio host Howard Stern. The agreement's terms lend some credence to claims from Stern and many legal experts that CBS's legal attack had little foundation. The deal will give more than bragging rights to Stern, though, since it involves an exchange of assets that seems likely to strengthen the content of Stern's new employer, Sirius Satellite Radio.
The publicly released portion of the settlement calls for Sirius to pay CBS $2 million to settle the lawsuit. However, The Washington Post notes that the wording of the deal may mean CBS will receive additional payments from Stern himself -- payments that won't be made public. Whatever the case, CBS's decision to settle out of court suggests that the total amount rendered will be well below the $200 million-plus in damages that the network had sought in filing the suit.
More importantly, Stern will gain control over a valuable asset from CBS in exchange for the payments: As part of the deal, CBS will surrender its rights to 20 years of master tapes of Stern's CBS radio shows. It's not clear how these tapes will be used, but since Sirius' $2 million contribution goes toward paying for these rights, there's a good chance that the material will be integrated in some way into Stern's programming at the satellite radio company.
If so, this old content would provide Sirius with a rather strong selling point for former Stern listeners who haven't yet signed up for satellite service, since Stern surely would enrich his current show by the selective use of old material. But with so much content and a lot of airtime at his disposal, Stern probably would do more than that. He could, say, dedicate a time slot to replaying old classics, or have a call-in request show for past bits. That could provide Sirius with a whole new sales pitch -- Lots more Stern for the same (at least for now) price. With this move, Sirius is only strengthening its edge over competitors such as terrestrial radio and rival XM Satellite Radio.
XM is a recommendation of Motley Fool Rule Breakers, the newsletter service that tracks companies shaking things up. If you'd like to see what other innovators David Gardner has recommended, try out Rule Breakers free for 30 days.
from the NY Post.com
May 27, 2006 -- CALL out the strippers and bring in the lesbians, Howard Stern has settled his $500 million lawsuit with CBS Radio and insiders say he's making out like a bandit. CBS says Stern's new employer, Sirius Satellite Radio, will pay $2 million to keep 20 years worth of Stern-show tapes it claimed he took without permission when he noisily bolted terrestrial radio last year, The Post's John Mainelli reports.
While other terms of the settlement were confidential, industry sources say the shock jock and his agent, Don Buchwald, will shell out less than $10 million to end the fight over a jaw-dropping $220 million jackpot they collected from Sirius. Incredibly, that amount was bonus above and beyond Stern's already-juicy $500 million, five-year deal with the satellite group.
And with the old tapes now in the shaggy-haired jock's sweaty palms, there's talk of a "Classic Howard Stern" station that would air his past K-Rock shows unbleeped.
Stern was said to be ecstatic about the settlement yesterday - a 180-degree turnaround from when the bizarre suit was filed earlier this year.
CBS charged that Stern had "misappropriated millions of dollars" in airtime during his final 15 months on K-Rock and two dozen other CBS stations by doing virtual nonstop commercials for Sirius while at the same time bashing CBS, the FCC and conventional radio in general.
As a result, CBS claimed, he was able to collect a fat bonus in the first month on his new job by delivering "accelerated" subscriptions to Sirius at $13-a-month each. Several non-CBS affiliates canceled Stern's show early because of his incessant hype for radio's most aggressive competitor. And at one point last November, Stern was suspended by CBS for a day and called it "an act of desperation by men who are losing their once-in-a-lifetime franchise."
Yesterday, the 52-year-old radio gabber told his Sirius listeners he's "not allowed" to discuss the deal, and he didn't return our calls. Neither did a spokesman for Sirius, which is usually champing at the bit for free publicity.
While the lawsuit is history, it did provide some fun Stern moments, like when he went on David Letterman with an "I hate Les Moonves" T-shirt, and called the CEO of CBS, a onetime TV performer, a "C-rated actor from 'The Love Boat.' "
from the Hollywood Reporter
By Georg Szalai
NEW YORK -- CBS Corp. on Thursday hiked its dividend for the second time this year as president and CEO Leslie Moonves told shareholders at the firm's annual meeting here that it has gotten off to "a terrific start" since it split from Viacom Inc. at the beginning of the year.
Asked by a shareholder about a legal settlement between CBS and shock jock Howard Stern, Moonves referred the question to executive vp and general counsel Louis Briskman, who said: "The settlement is not signed. If we sign it, we will make an announcement promptly."
Late Wednesday, it emerged that a Stern-CBS settlement was imminent (HR 5/25). However, given the Memorial Day weekend, the pact may not be announced until next week.
--snips--
from fmqb.com
A settlement has been reached in CBS Radio's breach of contract lawsuit against Howard Stern. Terms of the settlement will remain confidential, though Sirius will make a total payment of $2 million.
A statement by CBS regarding the suit states: "The lawsuit brought by CBS Radio against Howard Stern, Sirius and others has been settled. As part of the settlement, CBS Radio will receive payments relating to the conveyance of its rights in the recordings of The Howard Stern Show. Sirius, for its part, will make a total payment of $2 million related to this conveyance. The remaining terms and conditions of the settlement are confidential."
Word first broke of the settlement two days ago by a court clerk commenting that a deal had been made. CBS Corp. filed the suit in February accusing Stern of misusing airtime on CBS Radio to promote his show on Sirius Satellite Radio. The lawsuit sought "compensatory and punitive damages for multiple breaches of contract, fraud, unjust enrichment, and misappropriation of CBS Radio's broadcast time." At a hearing two weeks ago, CBS' lawyer told the court that the two sides were close to reaching a settlement. Then last Wednesday (5/17), New York state court Judge Ira Gammerman postponed a scheduled hearing by a week to give more time for a settlement, according to Reuters.
from Reuters.com
NEW YORK (Reuters) - CBS Corp.'s radio division has reached a settlement with radio shock jock Howard Stern over a breach of contract lawsuit stemming from Stern's defection to a rival satellite radio broadcaster, the two sides said on Friday.
The settlement ends a bitter dispute between CBS and its former morning talk radio star Stern, who signed a five-year deal estimated at $500 million to appear on Sirius beginning in 2006.
CBS Radio had sued Stern, his company One Twelve Inc., his agent Don Buchwald and Sirius Satellite Radio in February, accusing the raunchy radio star of improperly using his final 14 months with the company to promote Sirius on air.
The suit sought unspecified compensatory and punitive damages for breach of contract, fraud and misuse of CBS broadcast time, among other accusations. Stern had called the suit a vendetta against him, saying he had done nothing wrong.
As part of the settlement, CBS Radio will receive payments in return for allowing the use of its recordings of The Howard Stern Show, according to a joint statement by CBS and Buchwald.
The payments include $2 million from Sirius. Information on potential payments by Stern and his representatives was not disclosed.
(Additional reporting by Steve Gorman in Los Angeles)
from Yahoo News
Forget the various rumors and rumblings. Howard Stern made it clear Wednesday morning: He's staying put on satellite radio.
"I'm very flattered terrestrial radio can't let go of me," Stern said on his morning radio show. "But I would throw up if I had to go back. I'm never going back."
The self-proclaimed King of All Media said that three companies have made overtures through his agent, but there was no interest from his end. He did not name the companies.
Stern is just five months into a five-year, $500 million satellite radio contract.
"I've never been happier," Stern said. "We're flying high and doing great."
Stern told the New York Post in a story published Tuesday that he had been offered "a major deal" to return to regular radio.
The Post identified one of the prospective bidders as Citadel Broadcasting, whose chief executive, Farid Suleman, worked with Stern for several years at Infinity Broadcasting until his departure for Citadel in March 2002.
Calls to Citadel for comment were not immediately returned.
Stern made his comments during an on-air interview Wednesday with The Associated Press. The eternally audacious shock jock insisted on speaking with the AP about the reports that he might consider a simulcasting deal where he split time between Sirius Satellite Radio and a traditional outlet.
Stern competitors Greg "Opie" Hughes and Anthony Cumia recently made such an agreement with CBS Radio. Stern worked for CBS before making his move to satellite in January.
Stern said that Opie and Anthony's return to traditional radio signified their "failure" on satellite. And he reiterated his intent to continue his program exclusively on satellite.
"The story is I wouldn't do it (terrestrial radio) for any reason," Stern said. "Not for money. I left because I couldn't stand the censorship. I couldn't stand" the Federal Communications Commission.
The FCC and Stern were locked in a long, pitched battle that led to staggering fines for the content of the shock jock's show.
Stern said he wanted to reiterate his commitment to satellite because of the growing number of reports that he could go back to terrestrial radio.
[Ed. - Howard again said this morning (May 10, 2006) that the story of him being offered spots back on terrestrial radio are true - he is NOT, repeat NOT moving back to terrestrial radio in any way. Saying it would break his promise of exclusivity for Sirius subscribers and be a step backward career-wise he is not calling anyone to make some type of return to terrestrial radio. To paraphrase Howard: "Being offered a deal DOES NOT mean I'm taking the deal."]
from the NY Post
May 9, 2006 --HOWARD Stern says he's been offered a "major deal" to come back to regular radio via satellite radio - just like his longtime enemies Opie & Anthony.
"The joke could be on them if I get good and worked up [because] I got offered a major deal to go back to terrestrial and stay on satellite at the same time," Stern told his Sirius listeners in comments replayed and mocked yesterday by "O&A."
"Can you imagine if I go across town against them in all those markets and just kick some a-? That would really be cool," said Stern, who now broadcasts to about a tenth of his former audience.
If an offer was actually made to Stern, it most likely came from Citadel Broadcasting, which is in the process of acquiring Disney/ABC's radio division - including New York's WABC, WPLJ and WEPN - and is headed by former Infinity/CBS exec Farid Suleman.
Once Suleman gets the keys to ABC's outlets, he could instantly return Stern to major FM stations in New York, L.A., Chicago and other huge cities, if Sirius, which is paying $500 million over five years for Stern's supposedly exclusive services, agrees to trade exclusivity for cash.
During a recent investor conference call, CEO Mel Karmazin said he's not entertaining reverse-licensing offers but added, "It doesn't mean that we couldn't in the future."
Neither Stern's agent or Suleman returned calls seeking comment.
As expected, Howard Stern’s exit from terrestrial radio wreaked havoc on the morning ratings for the CBS Radio stations in New York, Chicago, and Los Angeles, but opened the door to Spanish-language radio, which swept mornings across the top three radio markets.
Although the Winter ratings (covering the period Jan. 5 to March 29) for Stern’s replacements were expected to be low, the actual ratings, which Arbitron began releasing Wednesday, demonstrate just how far CBS Radio has to go to rebuild Stern’s audience.
In New York, David Lee Roth (who was replaced Wednesday by Opie & Anthony), took the station’s ratings from second place with a 6.6 overall ratings share to No. 22 with a 1.2. Among the 18 to 34 and 25-54 demographics, mornings on WFNY-FM “Free FM” plummeted from first place to 14th and 17th, respectively.
In Stern’s place, Louis Jimenez, lead host of El Vacilon de la Manana on Spanish Broadcasting System’s WSKQ-FM, was No. 1 overall and No. 1 among 18-34 and 25-54. Overall ratings grew nearly two share points from 5.5 to 7.3.
With Opie & Anthony now in place in New York (and seven other markets where Roth aired), ratings for the 18-34 demo, a demo Opie & Anthony ruled when they aired in afternoon drive, could be up for grabs.
Adam Carolla on CBS’ Free FM outlet in Los Angeles (KLSX-FM) didn’t fare much better than Roth. Mornings on KLSX dropped from No. 7 to a 0.8 overall share. Among the 18-34 and 25-54 demo, mornings fell from No. 6 to No. 21 and from No. 3 to No. 27, respectively.
While Carolla struggled, Eddie “Piolin” Sotelo, morning host on Univision Radio’s KSCA-FM continued his reign as the top-ranked morning host overall with a 5.6 share. He was also ranked first among the 18-34 and 25-54 demos.
Rover, (aka Shane French) on WCKG-FM in Chicago, had a dubious start in the Windy City, even though the market wasn’t one of Stern’s strongest. Overall, Rover’s Morning Glory had a 0.4 overall rating, falling from 14th to 38th. The morning show ranked 32nd among 18-34 year-olds, falling from 11th place. Among Adults 25-54, the show dropped from sixth place to No. 34.
Rafael Pulido “El Pistolero”, lead host of EL Show de el Pistolero y Memin, held onto first place in Chicago on Univision Radio’s WOJO-FM among 18-34 year-olds, but moved up in the rankings among the 25-54 demographic with a 4.9.
The only exception to the Spanish-language morning sweep in the top three markets was Spike O’Dell, morning host on Tribune’s News/Talk WGN-AM in Chicago, who was No. 1 among Persons 12 and older with a 8.2 share.
from the NY Daily News
April 13, 2006
Howard Stern's pitched battles to say what he wants on the radio have earned him the 2006 Freedom of Speech Award from Talkers magazine.
The award honors those who champion the freedom-of-speech guarantees in the First Amendment, says Michael Harrison, editor of the trade magazine. He said Stern, by opposing government restrictions on speech, has been "fostering the maintenance and proliferation of this bedrock principle of our democracy.
"No one on air in America has inspired as much discussion of the First Amendment. ... Stern proved you do not have to be a political/news talker to significantly challenge the President of the United States as well as the Federal Communications Commission."
While most criticism of Stern has dealt with the graphic content of his material, Harrison said the principle for which he has fought covers a much broader and more important range.
"His dissent brought attention to a concept that far too many people in our business still do not understand: There is absolutely no difference between political speech and artistic speech.
"If the government can regulate art, it can regulate political expression as well."
Stern, said Harrison, has been "demonstrating true liberal talk radio big time under the misleading banner of 'shock jock.'"
Ironically, Stern gets the award at a time when his speech on the radio is in a sense no longer free. Since he left his 25-year home on terrestrial radio in January for Sirius Satellite Radio, his listeners must pay $12.95 a month.
But the main reason for jumping to the unregulated world of satellite, Stern has said, is that FCC guidelines on broadcast content made it impossible for him "to keep doing my own show" where he was.
Stern has been a lightning rod for FCC scrutiny since the 1980s, but it was only in the past three years that he emerged as perhaps the agency's most prominent broadcast critic.
He has warned, among other things, that FCC guidelines were so vague they could cover almost anything controversial - a charge the FCC indirectly addressed last month, when an indecency ruling that did not involved Stern attempted to lay down much more specific limits on content.
Stern will receive the award June 10 during the annual New Media Seminar at the Embassy Suites in Battery Park City.
Past recipients include Rush Limbaugh, Al Franken, Bob Grant, Sean Hannity, Bill O'Reilly and Alan Colmes.
from CNN.com
The former Van Halen frontman, barely into his fourth month as replacement for the departed shock jock Howard Stern, is the subject of rumors about his radio demise. Roth's four-hour show was already revamped once, producing an on-air tirade against management. And initial ratings were discouraging.
It appears that following Stern, radio's own rock star for the last two decades, is more difficult for the fast-talking Roth than staying on estranged bandmate Eddie Van Halen's Christmas card list.
"He's a dead man talking," said Michael Harrison, founder of the trade publication Talkers magazine. "Based on reports from behind the scenes and critical reaction, coupled with early ratings, it's not looking good."
The once-spandexed lead singer has rarely hit the right notes since his January debut on New York's WFNY-FM (billed as Free-FM) and six other CBS Radio stations. In a recent broadcast, Roth claimed he was bombarded with four management letters in five days about content and predicted his show could be finished before May.
Several of his on-air sidekicks were dumped as the program struggled to find its groove. Roth disappeared from the airwaves for two days amid the turmoil.
"I think the radio industry expects this will end sooner than later," said Tom Taylor, editor of the trade publication Inside Radio.
CBS Radio spokeswoman Karen Matteo declined to comment on the Roth show. But it was widely believed, even before Roth's choice, that replacing Stern was a near-impossible task -- particularly for an inexperienced broadcaster.
CBS Radio, realizing its dilemma, replaced the self-proclaimed King of All Media with several people, including comedian Adam Carolla (who's also struggling to keep Stern's audience in Los Angeles). Roth landed the plum job in New York, the nation's No. 1 radio market.
Billboards and bus ads heralded the beginning of Roth radio as Howard sailed into the satellite radio sunset with his $500 million deal. It didn't take long for critics to tear into Roth's performance.
"Roth's show is ... skin-crawlingly awful," wrote Rob Sheffield in a Rolling Stone piece. "In these days of bland Clear Channel/Infinity corporate radio, it's bracing to hear a guy who has no idea what he's doing. ... Listening to Roth, you feel actual physical pain."
The nasty cracks soon spread to Roth's competition in the cutthroat New York morning radio market.
"He's a mess, and he's a loudmouth punk," said syndicated radio host Don Imus in a recent critique of Roth.
Over on WKTU-FM, a Van Halen song was played on a Friday morning.
"David Lee Roth singing on that?" asked co-host Goumba Johnny. "More people heard him on 'KTU this morning than on Free-FM."
It wasn't this way back in October, when Roth was rolled out as Stern's replacement. The shock jock hosted the rock star on his radio show, and wished his successor well. But by March, indications from the Arbitron monthly trends indicated Roth was drawing a fraction of Stern's New York audience.
Roth, bristling at what he considered management interference, responded by doing a show that sounded like a hostage tape. He later changed his tune, promising to stick with the program: "I'm going to give it a try. I've invested too much in this show not to."
He returned this week with a renewed enthusiasm, attempting to make the best of the situation.
"You just hope the bitterness and rancor don't continue, and that everybody finds a peaceable ending," said Taylor. "Watching a train wreck -- or listening to one -- isn't a great way to spend your morning."
from the NYDaily News
April 2, 2006
Shock jock Howard Stern got the scare of his life when a crazed fan spit in his girlfriend's face and threatened both of them on an upper West Side street, sources said yesterday.
But a frightened Stern quickly turned crimefighter, helping cops nab the screaming, arm-waving lunatic, the sources said.
Stern, who is regularly approached by friendly fans on the street, was particularly shaken by the "deranged" man's angry outbursts, a source close to the radio host said.
His nerves, however, were calmed by a dozen or so cops who sped to the scene.
"It was very upsetting and traumatic, but he was very pleased with the professionalism and responsiveness of the police," the source said.
The story - which the privacy-loving shock jock may never talk about on his show - unfolded shortly after 8 p.m. Saturday as Stern and leggy girlfriend Beth Ostrosky were walking on Columbus Ave. at W. 62nd St. after dinner.
Wide-eyed fan Gregory Forbes recognized Stern and confronted the longhaired satellite radio gabber, screaming, "Howard!" Forbes, 50, allegedly screamed and waved his arms, threatening Stern and Ostrosky - getting right in their faces and making them fear for their lives, the sources said.
When the couple walked away and jumped into a cab, Forbes chased after them with his fists raised and spit through the taxi's open window into Ostrosky's face, a court complaint charges.
Stern managed to call cops - but by the time they arrived, Forbes was gone, the sources said.
Undaunted, Stern hopped into an unmarked police car with anti-crime cops and helped them scour the area for the weirdo, sources said.
Blocks away, two detectives spotted a man fitting Forbes' description about 8:50 p.m. Stern, from the safety of the unmarked police car, identified Forbes as the suspect, sources said.
Forbes, who lives in a boardinghouse in Hamilton Heights, was hauled to the 20th Precinct stationhouse on W. 82nd St., the sources said. He was arraigned last night in Manhattan Criminal Court on charges of third-degree menacing and second-degree harassment and held on $500 bail.
A representative for Stern, who lives with Ostrosky in Manhattan, could not immediately be reached for comment.
The weekend menacing incident was not the first time violent fans have threatened Stern. Ten years ago this month, a shotgun-packing man was busted in midtown after allegedly running after Stern's limousine as it pulled into a studio loading dock. In 1999, a man who once pointed a toy gun at Ronald Reagan in the 1970s was sentenced to 21/2 years in prison for sending letters to Stern threatening his life.
The Saturday night confrontation was the latest agita for Stern, who recently complained that not enough of his fans have followed him since he left free radio for pay radio in January. "I want to say to my audience . . . 'You haven't come with me yet? How dare you? We're up to wild, crazy stuff, the show has never sounded better,' " Stern told Entertainment Weekly.
He is also battling his old bosses, who claim in a lawsuit that he improperly plugged his new Sirius program on CBS' airwaves. Stern has denounced the lawsuit as frivolous - even going on CBS' "Late Show With David Letterman" to make his case.
With Nicole Bode, Christina Boyle, Alison Gendar and Tanyanika Samuels
from Entertainment Weekly
by Josh Wolk
Howard Stern has been huge news since the January launch of his heavily hyped Sirius satellite radio show — and judging from the two reporters waiting eagerly outside his midtown Manhattan studio one recent March morning, something headline-worthy is happening again. Finally, it's time for a commercial break. The door swings open, and Stern's bearish sidekick Artie Lange pushes through, sucking cakey residue out of his teeth. A delivery man, knowing Artie's weakness for junk food, has just surprised him with a free case of Devil Dogs, and these intrepid journalists are hot on the story. The questions start flying: How long will it take you to finish the case? Is this the best gift you've ever gotten? Are you gonna take the guy to a Yankee game to thank him?
If Artie's Devil Dog score doesn't sound like a Watergate-worthy scoop, you're obviously not a Howard Stern fan. These reporters aren't from CNN or The New York Times; they're working for a brand-new all-Stern cable channel, Howard TV On Demand (which fully launched on March 16), and for Sirius' Howard 100 News, a radio show devoted to All Things Stern. Lange, who just wants to thank the delivery guy and maybe take a leak, looks confused by the media glare. He answers a few questions, and finally wheezes a laugh. ''This is like a press conference about nothin'!''
Nothing? To Stern fans, there is no such thing as nothing. This is a guy who can — and often does — keep listeners mesmerized with a dissertation on his own bowel movement. That's why Stern believes his fans will tune in to his new TV network, a pay service available in 20 million homes that offers hour after hour of taped radio shows, behind-the-scenes footage, Stern-centric documentaries, and depixelated, re-nudied episodes of his old E! shows. An HTVOD cameraman constantly roams the Sirius hallways, making sure no drinking binge, screaming argument, practical joke, or waved prosthetic penis goes undocumented.
HTVOD is the latest entry in Stern's new empire, which also includes a pair of radio channels devoted exclusively to 24-hour-a-day Stern-related content. The 52-year-old shock jock is in the process of creating a self-absorbed Empire of Outrageousness — one that's totally unregulated and uncensored. After years of being told what he couldn't say, the most outspoken man in media is finally saying exactly what he feels, on the air and off. (And he's gotten even louder lately with his scorched-earth response to CBS Radio's lawsuit against him.) This interview is no exception, even without any in-depth questions about snack cakes.
ENTERTAINMENT WEEKLY: After 12 years, E! ended your show, its top-rated program. Instead of shopping it to another TV network, what made you want to start your own?
HOWARD STERN I needed control. Maybe I could pioneer a channel where I control the content. Now I don't have a presence on a broad system, but I'm never going to get smacked with ''You're obscene.''
Right now all of the HTVOD programming is related to your show. Any plans for non-Stern content?
Maybe the Howard TV brand can mean something like National Lampoon did in the '70s. You'll go there for all kinds of edgy stuff. For example, I was once at the NATPE convention [where syndicated programs are sold] and I ran into a guy who had a TV show that was women in bathing suits and high heels bowling. That was it. It was the freakiest show ever. And I went, ''If I had a network I would buy this show — my fans would think it was the greatest thing.''
Any similar plans for your Sirius radio channels?
We're going to keep trying to bring in more creative people. Sam Simon, who wrote for The Simpsons, is writing Desperate Howard-wives, a radio script about what happens in the lives of the show people's wives. [My girlfriend] Beth is trying to kill me because she wants my money, and the other housewives are furious because if I die, their husbands will have no work. We want to have radio sitcoms, radio movies. Maybe Fartman: The Movie. I pitched a show the other day for Triumph the Insult Comic Dog, and Robert Smigel loved the idea. And we may move this stuff over to On Demand. We can be content providers like no one has ever seen before.
Sitting in the studio where he does the daily radio show that can sometimes last nearly six hours, Stern seems relaxed and content, beaming as he watches little-man-with-a-littler-head Beetlejuice hurl garbled (and unbleeped) four-letter insults at Lange. Afterward, producer Gary ''Baba Booey'' Dell'Abate explains how much more energized his boss is now that he can say whatever he likes without harassment from station brass or the Federal Communications Commission (which has socked Stern with millions of dollars in fines over the years). On terrestrial radio, every morning began with Dell'Abate going through both the long list of commercials they needed to run and the management's complaints about the previous broadcast. ''I'd say, 'Before we talk about today's show, you know that bit we played yesterday? No good,''' recalls Dell'Abate. '''In fact, they hit the delay button on it. If you want to play it again, we have to edit out this, this, and this.' And that was the funniest part of the bit.
He'd say, 'It's ruined.' And then we would start the day. Those two elements missing are huge weights off him.''
ENTERTAINMENT WEEKLY: How is your life different now from a year ago?
STERN First of all, I'm genuinely happy at work. I realize now I must have been in a depression for 10 years. I feel like my flow is back. The show is funny again, because what I got famous for was talking about edgy things. People used to say to me all the time, how come you don't do this or that? I couldn't. The FCC was up my ass. After the first fines, I'd fight every day. By the third set of fines, I didn't even get a say. I gave up. I went, ''I can't fight this anymore.'' I never knew such misery in my career. It pressures you in a way that is unbelievable. It is like racketeering. They don't let [the stations] do business, or renew their license until they pay those fines. They're like mobsters. You cannot win against the government.... When it gets closer to an election, the fines really start flying. It's the only way the government can look like it's doing something. Between the environmental issues, the war, the economy, and people suffering, what one thing can they do?
They can scream about abortions, and scream about filth on the airwaves. It's all a f---ing smoke screen.
Now the FCC is off your back, but you have a new favorite foe: CBS chairman Les Moonves. On Feb. 28, CBS Radio filed a $218 million lawsuit against you for promoting Sirius while you were still broadcasting on their stations. You responded with a major media onslaught, including appearing on CBS' Late Night With David Letterman as part of your ''I Hate Les Moonves'' tour. It almost seems like you're grateful for the opportunity to have another public battle.
Some people have said, ''CBS made a dumb move, they put Howard back on the front page.'' I wasn't looking to be on the front page! I can get on the front page. It's a vindictive, vicious lawsuit. It costs a lot of money, and it takes up a lot of my time, and that's what it was designed to do. And who the f--- wants to be called a fraud by CBS? That's why I held that press conference [the day the suit was filed]. I didn't want them to have the headline, ''Howard Stern: Fraud.'' I want it to be ''Howard Stern Fights Back.'' ''Howard Stern exposes Leslie Moonves for what he is, a guy who has got a failing radio division who is trying to distract the public.'' About a month ago, [Moonves] sent a legal letter telling me I should shut up. I said no way. This is what I've got going for me. He figured I'm off on satellite somewhere, no one will hear me complaining. I want to expose this guy for the bully he is. I'm sorry, I truly do. I think what he's up to is wrong. He knows this lawsuit is bulls---.
This is about my move to satellite and the jealousy of the industry. It's like a marriage, and they're the ex-wife who can't move on with her life. [''We have a solid legal foundation for our complaint,'' responds a CBS spokesperson, ''and we intend to prove it in court.'']
Now that you're on satellite, you don't have to worry about ratings. What's that like?
It's a very different mindset. I realize anybody who comes to Sirius has so many choices across the dial, and it's so not threatening. If I'm doing a s---ty show, then listen to Sirius' Playboy channel. I'm thrilled with that. We're all on the same team.
That's odd coming from a guy who said on the radio this morning that he berates himself for bad shows.
I've got a real f---ing issue. I'm mentally ill, I know that. I will beat myself over the head all day long.
A crew from Howard TV On Demand tapes every radio broadcast, editing it down to a TV show that's ready for air in just 36 hours. (Subscribers pay $13.99 a month to access a rotating library whenever they want.) Today, Andrew Dice Clay is returning to Stern's show after a nearly nine-year feud, and HTVOD's executive producer, Doug Goodstein, is planning to build the next episode around the Diceman's visit. After Dice finishes, Goodstein is about to head downtown to the HTVOD production offices to supervise the editing when he hears Stern on air summoning writer Sal ''the Stockbroker'' Governale in a peeved voice. After 13 years with Stern, Goodstein can sense when a great shouting match is imminent, and he sits back down. ''Let's stick around,'' he says. ''There's gonna be a staff fight.'' Sure enough, within minutes the germophobic Stern is ripping into Sal for using his megaphone. When Robin and Fred join in, the studio bursts into chaotic cursing. Stern sits back and smiles.
You have mastered the art of turning your entire staff against each other.
I'm like a conductor. I love to hear people fight, when real anger comes out. I love to observe emotion. It seems to be a unique ability of mine to irritate people and get them going. One time a listener called and said, ''I bet you could piss off anybody at any time on the show.'' I said, ''Of course I could.'' And Gary says, ''That's not true, you couldn't piss me off.'' I said, ''Of course I can, but you don't want me to do it.'' He says, ''I promise you it's okay.'' So I go into a rap on the air about how I know Gary cheats on his wife, and he went berserk. Within three seconds he was yelling and threatening to quit, and we're going at it. He's going, ''This is outrageous, I'm faithful to my wife!'' I knew it was his Achilles' heel. Afterwards, I said, ''Gary, you asked me to do it.'' He says, ''But that was unfair.'' I said, ''Gary, I can't do it if it's going to be fair.''
You're 52, and reinvigorated by scatalogical and sex humor. Do you think there will ever come a time when you'll outgrow it?
My father is 82, and I asked him, ''Do you feel like an old guy?'' And he said, ''I still feel like the core of me is the same.'' In some ways I know I've changed. But I still think taking a dump is funny. And if it stops being funny, I guess that's the end of my career.
Now that you have the freedom to do anything, why aren't there naked women on your lap for the whole show?
It's funny, if I never had another naked woman on, I'd be fine with it. Or another guest. I could care less. I believe the rapport between Robin, myself, Fred, Artie, and the characters is really the substance of the show. But the other day, [porn star] Savanna Samson comes in, hops on the Sybian [a sort of vibrating saddle that Stern keeps in the studio], moaning and groaning, and guys were calling in saying ''This is what we love, this is the show.'' I looked at Gary, defeated. I go, So all I've got to do is get a chick to moan and groan and I'm a hero and that's good radio? In a sense, yes.
Sirius has 4 million listeners, but that's only a third of the 12 million you had before you moved. Do you ever worry about your audience getting too insular, with only die-hard fans listening to you?
I don't know, it's not clear yet. When you are on terrestrial radio, there's a certain rush when you walk down the street and someone yells, ''Hey, great interview with Donald Trump today!'' It's a big universe. But I have proven myself in that universe. And I'm not sure many other people could bring the millions of people to satellite so quickly. When I signed on [in October 2004], Sirius had 600,000 subscribers. Now it has 4 million. Maybe that's the crowning achievement. Compared to terrestrial it's still small, but I think about it and go, ''Well, that's still more than Imus has.'' On satellite I do worry that we're like the Shree Rajneesh, off with our cult. [But it] excites me that it's our world. There's nobody interfering. We can give the fans anything they want. It's liberating.
Does it bother you that most of your fans haven't followed you to Sirius?
I was just at my psychiatrist and I said, ''I just got great news: We hit the 4 million mark. And I'm angry. It should be 20 million.'' It's insulting to me that everyone hasn't come with me. I take it personally. The competitive thing is a sickness that eats at me. I want to say to my audience in this article, ''F--- you! You haven't come with me yet? How dare you?'' [Laughs] ''We're up to wild, crazy stuff, the show has never sounded better. You cheap bastard!''
from SiriusBackstage.com
March 9, 2006
-CBS says Stern was in breach of contract for the last twenty two months, not just the last 15 since he signed with Sirius. The breach started when he commenced negotiations with Sirius before alerting CBS Radio. CBS is arguing that they would have negotiated in good faith to come to a joint agreement with Sirius to allow partial broadcasting. It also notes that they are entitled to 40% of the net profits under Stern's CBS contract to any outside projects.
-CBS was not aware that Stern would be paid at the start of the broadcast, and they insist that he would have been pulled if they knew he would be compensated for what he was doing in 2004/2005.
-Stern and his company OneTwelve have tapes that are the property of CBS, and they have to be returned. They have not been returned even after a letter was sent back in December asking for them.
-CBS added Stern in several markets in 2004, thinking that Stern was going to stay with them.
Damages: the $218 million that Stern received from Sirius for promotion, the compensation CBS paid him since the breach of contract occured, 40% of the profit that Stern and One Twelve get from Sirius, revenue from the subscription fees that Sirius pulled in due to Stern, return of the tapes.
Analysis:
-CBS has two weak arguments and a strong argument here. The tapes thing is easily solved. I feel that if CBS really cared about keeping Howard, it would have filed a motion to throw out the Sirius-Stern contract back in 2004. It knew that there was a breach of contract there, yet did nothing to stop it. If Les said 'good luck' and there was no mention of a problem to Howard, it seems like a verbal approval of it. If I'm putting a pool in my backyard, and you think that it is over the property boundary by a foot, you don't sit out there everyday saying hi and commenting how great construction is going, then sueing after it goes in.
-They do have a case regarding Stern not announcing his compensation. Stern said several times over the course of his CBS broadcasts from the day of the signing that he does not have a financial motivation to get subs to Sirius, when in fact he did. They allege that if CBS knew about this, they would have made Stern compensate them and announce it on the air. The problem comes from them assuming that he would refuse to do it, and they would fire him.
The most debatable aspect comes from Stern negotiating with Sirius before CBS. Basically, CBS might have first right of refusal, but if satellite radio is different than regular radio as Stern has said for a while that it was, then it can be consdiered an area where CBS could not feasibly match an offer from Sirius because they do not have, nor were looking at starting, a satellite radio service.
-Damages are way too high. I'm going to break those down one by one:
--They are seeking all $218 million that Sirius paid Stern as fees for broadcast, even though they feel that Stern spent $100 million in airtime. If the $100 million can be proven, then they should be awarded that, plus a couple more million as a fine. They cannot prove that Stern would have disregarded their attempts to disclose it on the air, hence they cannot say that he should be fired.
--They want his compensation returned for the last 15 months off the CBS contract. Pure BS. Stern did not pull paid ads and insert his plugs for Sirius in their place. CBS still made a helluva lot of money during those last 15 months. The only way I could see Stern returning his money is if CBS returns all the advertiser's monies, which is not going to happen.
--40% of the profit. They argue that the contract covers all material that is negotiated during the current tenure at CBS. It is not implied anywhere in there, and since his contract at Sirius did not start until after his Infinity contract ended, it is a different agreement. I don't see a court holding up that CBS deserves this money simply because they helped grow Stern.
--Sirius' revenues from Stern subs. That definitely is not happening. They are getting compensation from Stern for the ad time, so they will not be receiving money from Sirius for the subs. They don't get the revenue Snapple gets from those who buy it after hearing an ad on the radio, so why would it happen now.
--Return of the tapes. That will happen, and is just a side complaint.
from the NY Daily News
By David Hinckley
Morning host David Lee Roth of WFNY (92.3 FM) spent four hours yesterday telling his bosses where they could stick their ideas for improving his low-rated show.
"They want me to copy Howard [Stern]," Roth said. "But I refuse to regiment this show. ... I told them I would quit if they will not let me do what I was hired to do, which is create something unique."
He referred to station manager Tom Chiusano and programming vice president Mark Chernoff, who met with him Tuesday, in terms that included "social retards," "beige baby-food sissies," "stooge" and "an ugly little dysfunctional worm."
He said they told him he should appeal to "a 35-year-old white male who likes Lynyrd Skynyrd" and asked him to stop using "foreign" and "ethnic" music for soundbeds.
He called that notion "racist," saying, "This show isn't designed for a demographic. It's for everyone."
This was hardly the first time Chiusano and Chernoff, who have worked for years with Stern and Don Imus, have been used as punching bags by their air talent.
"We are involved with all of our talent in working on their programs," a CBS Radio spokeswoman said.
The question is whether they will take as much from a fledgling host as they have from veterans earning millions of dollars for the company.
Officials at WFNY's parent, CBS, privately expressed concern with some of Roth's remarks.
Roth said he was told he will soon have a female newscaster who will read stories he can comment on.
"That's Robin Quivers," he said. "But there's only one Robin Quivers. Just like there's only one Howard and only one David Lee Roth."
He conceded that for his first four weeks, during which time his ratings took a steep plunge from Stern's levels, "I was like a fish flopping around at the end of a stick."
But he said he's a quick study and quoted Stern's comment to Sean Hannity on The Fox News Channel that a new show can't be judged for "15-20 months."
"Howard took his old audience," said Roth. "We're after a new one."
Ironically, Roth's rebellious rage yesterday drew on the same technique Stern has used for years: vilifying the boss as a means of bonding with every listener who has ever thought his or her own boss is an ugly little dysfunctional worm.
At the end of the show, Roth said, "I hope I'll be back tomorrow."
from Cracked.com
Believe it or not, the T & A is actually NOT the best part of the show, despite the fact that non-Stern listeners seem to think that it’s the only thing the Howard Stern show is about.
Let’s be honest, boobs on the radio can only be interesting for so long. What’s really kept fans tuning in since the local Channel 9 TV show days is the feeling that we’re listening in on a family—a highly dysfunctional family—but a family, nonetheless. Of all the many facets of the show, the strange camaraderie between Stern and his sidekicks is what we hope stays intact after the move to Sirius.
Here are our favorite moments…
CRACKED’s Top 25 Stern Show Moments
25. Artie Lange gets ridiculously drunk in Las Vegas -- and cameras capture every hilariously slurred insult. The carnage is currently up on Howard On Demand (check local cable listings).
24. The Jackie Puppet— commanded by Billy “Ren & Stimpy” West in the mid-’90s—was one brutal block of wood. Most common victim? Jackie “The Joke Man” Martling, of course.
23. World’s Meanest Listener Contest: Listeners submit entries roasting the staff of the Stern show. Slipping through a loophole in the system, the Reverend Bob Levy wins, barely beating out Yucko the Clown and Sal the Stockbroker.
22. Backside Boys (animation): This animated parody music video for the Backside Boys’ “I Went the Gay Way” is the stuff of legend. The video should be launched into space as an ambassador of the Planet Earth.
21. Craig Gass as Gene Simmons: The anti-Christopher Walken impression. Have you EVER heard of anyone doing a Gene Simmons impression before? Craig—along with Stern crew writing—did everything with this that should be done with an impression: spot-on voice, and (moderate) exaggeration of what makes the real-life Gene what he is… a KISS marketing whore! And then ultimately Gene met “Gene.” Phenomenal.
20. AJ Benza bitch-slaps Stuttering John- and gets banned from the show—almost surreal.
19. "Brown Fingers" video starring Scott the Engineer – circa 1995: The crew alleged that Scott’s smoking was so out of control that the cigarette tar was actually staining his fingers brown. Thusly was born a parody of the Stones' “Brown Sugar” and an accompanying music video starring Scott Salem as a seven-foot cigarette.
18. Wood-Yee: he will be missed, as we cannot confirm he’s moving over to Sirius. Played by Woody Allen sound-alike Steve the Engineer, he would often sit in when the show had an attractive female guest on… of the Asian persuasion. Typical Wood-Yee proposition: “Go ahead and swallow, I don't contain any MSG.” And there were hundreds more.
17. Rita G has the World's Most Perfect Natural Breasts: What was most hilarious about this episode, is the legion of K-Rock male employees who were “skeptical” of them being real, and lined up to squeeze them for themselves. Benjy actually resorted to a taste test. (Currently available On Demand.)
16. Hollyweird Squares: The game show spoof, using different Wack Pack permutations each time, would throw in an occasional real celebrity for good measure. One hilarious tangent that comes to mind is Howard asking Daniel “KKK Guy” Carver if he’d allow Jeff “The Drunk” Curro into his white-hooded club. Daniel said that he’d have to ask Jeff a few questions first, to see if he’d qualify. Jeff to Daniel: “Ask me the questions, bitch.” That disqualified Jeff, right there.
15. Elegant Elliott Offen is either legitimately insane or SO sane that he has us all fooled. Either way, he’s hilarious. Anyone who’s lived on New York’s Upper East Side has had the pleasure of seeing him run right up 2nd Avenue in lingerie. Or whatever the fuck he wears when he runs.
14. High Pitched Eric’s dead fish phobia: What kind of guy is like 300 pounds, yet is afraid of a dead cod? The same retard whose voice sounds like Mickey Mouse got hit in the nuts. Of all his oddities—and much to the delight of the E! crew—it was discovered that dead fish paralyze Eric with fear.
13. Hank the Angry Drunken Dwarf is one guy who won’t be making the move to Sirius for sure. With unforgettable quips like “Go have sex with Jesus Christ, you faggot!” Hank will be dearly missed as long as angry drunken dwarfs are funny (read forever).
12. The Girl who “Lights up a Room”: Of the dozens (hundreds?) of evaluations that have been conducted over the years —be it for Playboy, or the Intern Beauty Pageants—this one from 1997 stands out. Judges Kevin Smith, Jason Mewes and AJ Benza had to hand down the bad news to an aspiring actress who thought she “lit up a room.” Not only did she not light up a room, Howard recommended that she go “light up a cigarette.”
11. Jeff the Vomit Guy: This psychopath gets turned on from women puking on him. Or at least that’s what he claims, might’ve all been a ploy to get on the show. Anyway, what made it eye-tearing hilarious was not him getting yakked on, but listening to Howard and crew watch him get yakked on. Bababooey gagging over a bucket. Way before MTV knew what Jackass was.
10. The Channel 9 Show: Once a year, Howard let’s a caller through asking about when this will finally be released on DVD. We’re still waiting on the good news. It seems to be out of Howard’s control—an ownership issue. The Channel 9 Show (WWOR-NY) ’90-’92 TV run was many a fans’ first intro to Howard, or at least provided the shocking revelation that Robin Quivers wasn’t white. From Kenneth Keith Kallenbach attempting to blow smoke out of his eyes to Stuttering John “interviewing” Imelda Marcos, to the final episode’s no-questions-barred “Sternlywed Game,” no one could believe what we were seeing. Howard got away with murder every week. It was the greatest.
9. Erica the Gymnast: Possibly the sweetest, cutest girl-next-door ever on the show…looking to win implants. Killer athletic body, but yes, her chest was flatter than a week-old open soda. It didn’t matter to Howard and the guys, though—they found her so endearing (and fit), they basically begged her NOT to get the implants. This was the epitome of the “human” Howard shining through: he adjusts his interaction with a woman based on that particular woman. If you’re a slut, he interacts with you as such. If you’re not a slut, he ratchets up the respect. Well, to a certain degree… this is The Howard Stern Show, after all. The guys clearly all fell in love with Erica, but unfortunately after some semi-innocent nudity, she won the saline bags she was after… with the Howard restriction that she “wouldn’t go too big.” (Currently available On Demand.)
8. Battle of Wits (Beetlejuice vs Gary the Retard) We’re sure many Stern fans would rank this in their Top 3, if not the pole position. With IQs rivaling the final score of most baseball games, Beetlejuice and Gary engaged in a trivia bloodbath moderated by Howard. Brain-bending questions included spelling “RED”—which Beetlejuice couldn’t achieve, despite Gary (sitting right next to him) spelling it correctly THREE times. Right in front of him. Funniest aspect of all of this? Jackie cackling in the background throughout the entire contest.
7. The Jesus Twins: To this day, some maintain that these guys (along with their “manager”) were a comedy troupe. Robin really thought so. In early 1997, right before Howard’s Private Parts movie was set for release, The Jesus Twins—emulating obnoxious rock stars—demanded to be on the radio show, demanded to have their music played and demanded that it be included on the Private Parts soundtrack. They accomplished the first two. These guys were SO obnoxious and SO ridiculous in their approach, that Howard actually loved them. Gary, Jackie and Stuttering John felt the opposite… and on top of that, the twins almost got into fisticuffs with Crackhead Bob, right there in the studio!
6. Win Fred's Money: The quiet sound effects genius of the show—who’s been with Howard the longest—sometimes gets to make noise that’s not pre-recorded. His impressions are A+, but there’s no better spotlight venue for him than “Win Fred’s Money,” in which a listener or occasional celebrity challenge his general world knowledge, a la Ben Stein. Confident, but never cocky, Fred Norris usually kicks ass. Once in a blue moon he’s defeated, but mild-mannered Fred just shrugs it off.
5. Stuttering John kidnaps the Gary Puppet: That very same Fred Norris does a mean Gary Dell’Abate impression, especially when operating the beloved Gary Puppet. Introduced circa 1994 and becoming the instant star of the new E! show, Howard loved the Gary Puppet more than his own children. Despite Howard’s plea that the puppet remain safely in the studio, Gary (the real one, that is) brought it along to a weekend personal appearance… only for it to be ripped off, right under his teeth! After letting poor Bababooey sweat it out for a few days —including a ransom demand from the “kidnapper”—Howard and the crew revealed it all to be an elaborate practical joke. Orchestrated, of course, by dickhead Stuttering John.
4. Al Michaels / “I see OJ” prank call: Remember the good ol’ days, before hurricanes, tsunamis and terrorist attacks? When we had REAL disasters worthy of media coverage, like football legends running from the law? 1994 was a very special year… especially for prank phone calls to major news networks. Amazing that it took Al Michaels to decode the word “Bababooey” for the American public. Really, could this ever be pulled off again?
3. Howard withdraws from NY Governors race: Howard enters the 1994 NY Gubernatorial race…then quits. The press conference during which he makes his dropout announcement is the epitome of out-of-the-studio Howard: some sincere answers juxtaposed with hilarious barbs at the news media.
2. Scott the Engineer's "Pushup Challenge": Possibly the greatest skill of Howard’s is manipulating a small internal dispute into a water-cooler event. In late 1997, a debate emerged over how many pushups Scott (heart-is-a-time bomb) the Engineer could do. He couldn’t even do one. Somehow this snowballed into a challenge for Scott to do 17 pushups, with all kinds of betting and counter-betting on the event. Scott was given two months to get in shape for the task, and coming back from the holiday break in early 1998, was put to the test. Did he do it? Yes and no. And, no and yes. The final verdict was Scott conceding “No,”after he reviewed the tape of his attempt. As with Stuttering John’s boxing matches, the most entertaining facet of all of this was not the actual event, but the weeks of hype leading up to it. Howard On Demand right now has available “Scott Goes Berserk,” an “incident” that occurred during Scott’s training period – looking at it in context now, perhaps it was Scott’s ‘roid rage.
1. Gary’s “I want you back” tape, aka “The Babapolgy”: OK, this Top 25 list wasn’t at all meant for those unfamiliar with the Stern show. It was by a fan, for the fans. If you’ve come this far, and don’t know this Gary tape—this EVENT—it’s like being a Star Trek fan and not knowing Spock dies at the end of Wrath of Khan. It’s just not conceivable that you wouldn’t know it. And just like Spock dying in Trek II, Gary Dell’Abate died a bit in June of 1999, when this tape was “outed.” But hey, money changes everything. For a detailed account of that legendary week, please visit Mark Mercer’s Marksfriggin.com.
Currently, available in its pure, unedited form On Demand. Hopefully, we’ll soon also get the in-studio analysis version. Just edging out Scott’s pushups for our top spot, can’t wait for the Sirius show to give us something even more ridiculous to displace it! Congrats to Howard and the crew on their move and new home!
Special thanks to the following online Stern archives:
www.marksfriggin.com (for exhaustive, jaw-droppingly detailed accounts of the radio show, archived back to 1996)
from MotleyFool.com
March 1, 2006
Morning-show legend and Sirius star Howard Stern is used to being sued. His legal clashes with the FCC ultimately drove him from terrestrial radio to the less-patrolled satellite airwaves. Stern and his randy antics have been judicial targets in the past, but now his old boss is the one gunning for him.
In a story originally reported by the New York Post and later confirmed in a press conference by Stern himself, CBS is suing the talk show host to the tune of $500 million. Why? CBS charges that Stern signed with Sirius while still under contract to CBS' former parent Viacom, then spent the last 15 months of his contracted life on terrestrial radio pitching the services of his eventual satellite radio employer on the air.
The claims may be true, but CBS will be hard-pressed to emerge victorious. Stern was paid to pick apart his own daily life, and obviously his impending deal was going to come up often. More importantly, Viacom censored the show to keep the naughtiest bits off the air; they could have just as quickly bleeped out any references to Sirius.
CBS may feel that Stern's Sirius mentions over the last year or so helped further the cause of the fledgling satellite radio service, but that may not quite be the case. Since the deal was announced in October 2004, rival XM Satellite Radio had signed up more new subscribers than Sirius. That only changed this past quarter, when Sirius lined up more new users for the period. Many of them came in over the holidays, after Stern was already off the terrestrial air.
But how silly does this make CBS? Going after Stern for the original value of his five-year deal with Sirius simply denigrates his CBS Radio replacements, who could use a little more corporate support. But it's equally brainless that CBS is giving Stern another crack at the national media stage.
Stern was already starting to settle in with his smaller Sirius audience. A Sirius investor might have wondered what Stern would have to do to promote his show to those outside of his satellite radio reach. Was taking shots at Oprah in recent weeks a tactical ploy to land him on her show? Would he give Larry King a good reason to have him on his show again? Where art thou, Jon Stewart and David Letterman?
CBS, in a move that game theory advocates will likely judge brutally idiotic in a few years' time, seems to have accomplished what Stern alone would have been hard-pressed to do. It just gave Stern new life. CBS presented him with a can of worms, then loaned him a can opener.
It gets better, though. Come Monday, CBS Radio will start airing a daily afternoon show with TheStreet.com's Jim Cramer. The incendiary stock guru has been bullish on Sirius in the past. It's perpetually one of the most actively traded stocks, so you just know it's going to come up often during his show. Will CBS be able to sue Stern successfully if one of its own hires is pitching Sirius at the same time? You can't gag Cramer any more than you can muzzle Stern.
CBS is getting itself into a legal tangle it will be hard-pressed to win, and empowering its target along the way. Can you believe it?
A clip of Howard Stern's dad chastising a young Stern gets played often during Howard's show.
"I told you not to be stupid, you moron!"
If the sound bite fits, CBS, blare it.
Rick is a fan of satellite radio and has been a Sirius subscriber since 2004. He also recommended XM toMotley Fool Rule Breakersnewsletter subscribers last year, based on the prospects of the promising satellite radio industry. He does not own shares in any of the companies in this story. The Fool has a disclosure policy. Rick is also part of theRule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
from TheStreet.com
February 28, 2006
CBS sued Sirius and shock jock Howard Stern.
Citing what it called "multiple breaches of contract, misappropriation and unjust enrichment," CBS Radio said it sued Stern, his agent and his company. CBS wants $500 million in damages -- matching the amount Stern signed for at the end of 2004, when he agreed to walk away from CBS' Infinity radio unit and join Sirius.
"Howard Stern repeatedly and willfully breached his written contract with CBS Radio over the last 22 months of that contract, misappropriated millions of dollars worth of CBS Radio airtime for his own financial benefit, and fraudulently concealed his interest in hundreds of millions of dollars of Sirius stock while promoting it on the air," CBS says its 43-page suit claims.
Sirius reps weren't immediately available for comment.
The lawsuit episode began to play out Tuesday morning, when the New York Post reported in its Page Six gossip column that CBS was about to sue Stern. Stern, who has made no secret of his distaste for CBS chief Les Moonves, lashed out at CBS and Moonves in a Tuesday afternoon press conference, Reuters reported.
"I'm offended. I really do think this is a personal vendetta," Stern told the news conference, according to Reuters. "Les has had it in for me for a long time. I don't deserve it."
Stern agreed to join Sirius in October 2004, when he still had more than a year to run on his contract with Infinity. He stayed on with the free broadcaster but spent much time mocking the company and talking up his Sirius gig. In the runup to his joining Sirius last month, Stern has bolstered the cash-burning company's subscriber growth, partly at the expense of rival XM (XMSR:Nasdaq) . In the fourth quarter ended in December, Sirius outpaced older XM on the subscriber acquisition front for the first time ever.
That performance apparently drew CBS' ire. CBS claims that Stern's rich stock bonus tied to the subscriber gains amounted to fraud: "The complaint alleges that the Sirius-Stern contract provided that Stern was to receive this stock payment in 2010, but it had an acceleration provision that allowed Stern to receive the compensation as early as January 2006 if these subscriber targets were met. All of Stern's actions for which he received this expedited compensation occurred during the time that Stern was under exclusive contract with CBS Radio, when the Sirius payment terms to Stern were kept secret."
Late Tuesday, Sirius slipped 9 cents to $5.02.
from RadioAndRecords.com
For November and December 2005 and January 2006, WFNY earned a 2.7 share 12+ in New York, falling from a 3.2 in the fall 2005 survey. The extrapolated ratings for New York show a significant decline in listening for the station that was WXRK (K-Rock) until the start of this year. According to Cornerstone Research, the station then known as K-Rock earned a 3.2 share in November and a 3.7 in December, Stern's final month in mornings at his former flagship station. In January, WFNY received a 1.2 share 12+.
Meanwhile, former Van Halen frontman David Lee Roth's first month as Stern's successor in New York could portend a very bumpy road ahead. According to the extrapolated results, Roth's program earned a 1.8 share 12+ in January, ranking 18th. That compares to No. 1 showings for Stern's old program in November and December and the No. 3 showing — with a 5.3 share — Stern saw in October.
In the 18-34 demographic, Roth's show attracted a 1.3 share in January, off from double-digit results seen in October, November and December by Stern's show. Among 25-54 listeners, Roth received a 2.4 share. Stern's worst showing since March 2005 was a 7.9 share; his program was ranked No. 1 for every month from March through December.
Across the continent, in Los Angeles, Adam Carolla's show attracted a paltry 0.7 share in January, making KLSX the lowest-rated full-signal commercial FM in the market during morning drive for the month. Stern's lowest monthly finish was in March 2005, when his program attracted a 2.9 share. Among listeners 18-34, Carolla's program debuted with a 1.5 share in January, and the Carolla show earned a 1.2 share in January among listeners 25-54.
CBS Radio executives continue to stress that replacing Stern's monster ratings is a task that could take up to two years, and the company is committed to letting its respective new morning shows — including Rover's Morning Glory, airing in the Midwest — develop and slowly gain listeners.
Rover's first results in Chicago, however, are certainly cause for concern: The morning program received 0.4 rating in January, 12+, while the WCKG morning program attracted just a 0.2 share in the 25-54 demo and a 0.3 share of the 18-34 audience for the month. Meanwhile, Chicago icon Jonathon Brandmeier is No. 5 12+ in January at Emmis' WLUP. Brandmeier's show is No. 1 in the 25-54 demo for the month.
Commenting on WFNY, CBS Radio spokeswoman Karen Mateo said, "We continue to take a long-range view at the station and are not drawing any permanent conclusions based on a preliminary trend. As we've said in the past, with a change such as we made at Free FM, it can take anywhere between 12 to 24 months before the station gains its place in the market." R&R's calls to WFNY PD Mark Chernoff and KLSX VP/GM Bob Moore were not returned by press time.
CBS Radio's New York cluster is also evaluating the latest results from WCBS-FM, the former Oldies station that flipped to Adult Hits as "101.1 Jack FM" in June 2005. The station dipped 1.7-1.6 12+ in the Phase One Arbitrends for winter 2006, and in the station's key 25-54 demo, it trended 2.5-2.1-1.7 from November 2005 through January 2006 in the extrapolated results Cornerstone reviewed.
Elsewhere in New York, WLTW (Lite FM) remains the overall No. 1, while WSKQ (Mega 97.9) remains a strong No. 2 and WHTZ (Z100) inches up to No. 3. WRKS (98.7 Kiss FM) and WWPR (Power 105.1) round out the top five. In Los Angeles, KLVE ties simulcast KIIS & KVVS for the top spot. KSCA (La Nueva 101.9) is again top five, while Spanish Oldies simulcast KRCD & KRCV (Recuerdo) score a 3.6 share and Latin Urban KXOL dips to No. 10 12+. KYSR (Star 98.7) fell 1.8-1.6 for a 24th-place finish.
In Chicago, WGN returns to the top spot as WGCI-FM dips to second place. WLIT rises to No. 3. Also released today: Nassau-Suffolk, Middlesex and Hamptons-Riverhead, NY.
Full Arbitron results are available by clicking on "Ratings" in the above menu.
— Adam Jacobson, R&R Management/Marketing/Sales Editor
from the NYPost
February 28, 2006 -- DOWN BY 75 PERCENT THE loss of Howard Stern was devastating to all-talk Free FM (92.3), according to preliminary — and unofficial — January ratings released yesterday.
While no replacement for the powerhouse shock jock was expected to retain his No. 1 ratings, ex-rocker David Lee Roth shed a whopping three-fourths of Stern's swan-song December audience, according to unofficial monthly "extrapolations" from interim Arbitron quarterly ratings.
Whereas Stern was top dog as usual in December, Roth ranked 18th in January, between Don Imus — who also lost listeners — and Spanish-language WADO.
Roth, who debuted Jan. 3 after Stern departed for Sirius Satellite Radio, attracted an estimated 63,000 listeners in January (during an "average quarter-hour") vs. Stern's more than quarter-million (277,000) in December.
A CBS Radio spokeswoman noted that, whereas Roth's total-audience share was 1.8 percent — vs. Stern's 7.9 in December — he did relatively better in the 25-to-54 age group that advertisers chase (2.4 percent) and among men 18 and older (2.7).
Industry observers caution that no radio show should be judged by its first month's estimated ratings — especially morning-drive shows that face fierce competition.
The Stern expatriates who didn't follow him to $13-a-month Sirius appear to have migrated to four wakeup shows that previously shared listeners with Stern.
Spanish- language bad boys Luis Jime nez and Moonsha dow, whose La Mega (97.9 FM) listeners are plenti fully bi-lin gual, jumped more than 50 percent from December to January and were top of the hill for the month.
Jim Kerr on classic-rock Q104.3 and Baltazar & Goumba Johnny on WKTU (103.5 FM) climbed more than 25 percent each.
New York's only morning-drive sports-talkers, WEPN's (1050 AM) Mike & Mike, nearly doubled their audience share from month to month — shooting from 0.6 to 1.1 to rank 24th, performing considerably better with young men.
from the Chicago Sun-Times
By Robert Feder
...snips...
But for Shane "Rover" French, the Cleveland import who replaced Howard Stern on CBS Radio's "Free FM" WCKG-FM (105.9) on Jan. 3, Monday's Arbitrends brought the worst news imaginable, prompting one competitor to rename the station "Free Fall FM."
No one is listening: From Stern's 4.6 percent share of 25- to 54-year-olds in December, French plunged to a 0.2 share. Among 18- to 34-year-olds, he fell from a 2.5 to a 0.3. Overall, he dropped from a 2.7 to a 0.4.
Repeat: No one is listening.
...snips...
from FMQB.com
While everyone knew that ratings would drop on the stations that lost Howard Stern last December, we now have our first taste of just what a steep dropoff it could be. Winter Arbitron ratings trends were released Monday for New York, Los Angeles and Chicago, with a major difference pre and post-Howard. (You can find full ratings for each market here.)
The first phase of trends cover November, December and January, so Stern was on air for part of the time frame. In New York, WFNY (formerly WXRK) had 13.8 percent of the 18-to-34 demographic last year, but when David Lee Roth took over at the beginning of January, their share plummeted to just a 1.3. The 12+ numbers have Stern with a 7.9 in December, dropping to 1.8 for Roth in January.
"Everyone knew there would be a drop," Rob Barnett, president of programming at CBS Radio, told the New York Daily News. "We're starting a new radio station, introducing new personalities people are discovering every day, in a format that's been very successful for us in other markets. This is just the beginning for this station and these hosts. We've said all along it's an 18- to 24-month process and we would never judge any show by one 30-day [ratings report]."
Meanwhile in Los Angeles, Adam Carolla's debut month on KLSX brought in just a 0.7 share 12+. Breaking down the numbers, Carolla had a 1.5 share for 18-to-34 year-olds and 1.2 among listeners 25-54.
At WCKG/Chicago, Stern's replacement Rover didn't fare so well either. Stern had a 12+ share of 2.7 in December, while Rover debuted with just a 0.4 in January. He only pulled in a 0.3 for 18-to-34 year-olds and a mere 0.2 for listeners 25-54.
It should be noted that extrapolations are not official Arbitron estimates.
from MotleyFool.com
I became a Sirius satellite subscriber in 2004, because I was both a fan of football and Howard Stern. I can probably get passionate about both, but since the late-season revival of my Miami Dolphins probably doesn't matter much to you, I think I should voice my concerns about Stern on Sirius.
Don't get me wrong -- the cost of Stern's contract over the next five years is money well spent for Sirius. The company's market cap is about $3 billion greater today than it was when the Stern deal was announced; that's six times the cost of Stern's $500 million deal. Even though XM Satellite Radio has enrolled more new users than Sirius since Stern's contract was signed back in October 2004, Sirius took the lead this past quarter in anticipation of Stern's arrival last month. The current quarter promises to be another good one.
However, after spending the past few weeks catching chunks of his show, as well as the rest of the programming on the two channels devoted to Stern, I do have my concerns.
As I feared, the show has been a bit lacking so far. Predictably, the first wave of chronic callers just hasn't been as entertaining as the waves of kooky characters that used to call in when Stern was on terrestrial radio. When you drain the gene pool of all but those who are able to afford satellite radio subscriptions, you'll be challenged by a more milquetoast call-in experience. The celebrity interviews -- which feature Stern at his finest as he asks the zingers that no one else dared to ask -- have been infrequent. That's left too much time for the bickering between Stern's crew. Some call that "good radio," but I can't be the only one who finds the self-awareness voyeuristically unfulfilling.
The shows are longer, as a welcome result of shorter commercial breaks, but Stern's show now runs just four days a week. Then you have the demystifying process. JumpTheShark.com's Jon Hein and producer Gary Dell'Abate host a show after Stern's live show that picks apart the highlights and minutiae of the earlier broadcast. Jon and I exchanged a few emails many years ago when he was interested in teaming up with Fool.com to produce a stock-based version of his popular site -- an idea that I still think would have been great -- and he's the perfect choice for this show. Jon and Gary are the two most centered members of the Stern crew, and their personalities play perfectly into the daily wrap-up show. The problem is that pulling back the curtain -- and offering 24/7 newsy dissections -- does the flagship show no favors.
Satellite radio is like cable access for yuppies -- but so are free podcasts. There's no point in peeling back the layers of the Stern mystique, especially now that the boundaries for outlandishness are no longer there to give Stern a reason to rage against the terrestrial radio machine. Stern just hasn't been as entertaining as when he was toiling away under Viacom's more restrictive shackles.
I hope it's only temporary. Satellite radio is a booming industry that is still early in its growth cycle, and I think both players are going to be huge winners in the long run. XM was even a Motley Fool Rule Breakers newsletter recommendation last year. I've got no plans to trash my Sirius radio; I think Stern and Sirius will ultimately get it right. Big stars and social misfits are like putty in Stern's capable hands, and his current show is an artwork in process. Let's hope that it's a masterpiece in the making, because now that Stern's audience is smaller, he has to make sure that he continues to set water coolers a-buzzing, if only to remind non-subscribers of what they're missing.
Longtime Fool contributor Rick Munarriz is a Sirius satellite radio subscriber. He does not own shares in any of the companies in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
from the LA Times
Sirius Satellite Radio Inc., which liberated radio shock jock Howard Stern from the federal decency standards that he felt had shackled him, is finding that freedom's just another word for $500 million to lose.
Since Jan. 9, when Stern debuted on Sirius, pirated versions of the shows have been made available for free via several online file-sharing networks just hours after Stern signs off. The New York-based broadcaster signed Stern to a five-year, half-billion-dollar contract in 2004.
Now, Sirius is, in a word, furious. "We don't condone the stealing of Howard's show, or any of the content on our more than 125 channels," Sirius spokesman Patrick Reilly said. "We vigorously protect our intellectual property rights and we will actively prosecute those who attempt to steal it."
It is not known how many Stern fans are sidestepping Sirius' $12.95-a-month subscription fee by illegally downloading his show. Because most hard-core fans are used to listening to the show in their cars, presumably many of them would subscribe rather than wait until they're in front of a computer screen.
And there is no question that Stern has been good for Sirius, which added 1.1 million subscribers in the last quarter of 2005. The company, which is behind industry leader XM Satellite Radio, reports 3.3 million listeners and expects to reach 6 million by the end of the year.
But ever since Stern traded the terrestrial airwaves for satellite, fans of his frequent interviews with porn stars have found ways to tune in to the self-proclaimed "King of All Media" for free.
A few weeks ago, when the first pirate radio stations began rebroadcasting Stern's show on unclaimed radio frequencies in New York and New Jersey, Sirius immediately notified the enforcement bureau of the Federal Communications Commission — the very body against which Stern has so frequently railed. The FCC in 2004 cited Stern's show on Clear Channel for "repeated graphic and explicit sexual descriptions."
Sirius also moved quickly to crack down on websites that streamed audio broadcasts of the Stern show. The broadcaster sent cease-and-desist letters protesting such "blatant and willful infringements" and threatening to sue unless the underground broadcasters immediately went silent.
But as each one shut down, it seemed, another sprang up.
Stern referred requests for an interview to Sirius on Wednesday. But he has raised the piracy issue on his show with a subtlety that is not his usual forte. Walking a very fine line, Stern has praised the renegade spirit that drives some fans to refuse to pay for what they used to get for free and he has pleaded with folks to just pay "42 cents a day."
Just as the rock band Metallica experienced when it first came out against illegal downloads of its music, Stern risks sparking a backlash. After all, this is the man who built his in-your-face persona around flogging federal regulators, who he claimed were the enemies of creative expression.
There already are signs that after dishing out such criticism for so long, Stern better get ready to take it.
"Mr. Freedom of Speech himself. Mr. $500,000,000 has ordered me to shut down my PERSONAL Web site that some people stumbled upon," wrote the operator of http://www.hearhoward.org , according to the Rocky Mountain News. The site made Stern's show available for free but with a disclaimer that only Sirius subscribers should use it.
BayTSP, a Los Gatos, Calif., firm that monitors online piracy for the entertainment industry, found digital audio files of every episode of Stern's Sirius show on every major file-sharing network.
"It's going to impact the Sirius radio subscribers," said Mark Ishikawa, BayTSP's chief executive. "Why would you pay $13 a month when you can get what you want from the Internet?"
Although no one can know the total number of Stern stealers, it is clear that Stern is a runaway hit among file sharers. His shows are more popular than the TV show "Gilmore Girls" and just behind Fox's "The Simpsons," said Eric Garland, CEO of BigChampagne, an online media measurement firm in Los Angeles.
The proliferation of sites offering Stern's shows for free is an unintended result of Sirius' consumer-friendly technology. Home adapter kits, designed so customers can plug their Sirius radio tuners into home stereo systems, can just as easily be connected to a computer. There, anyone with the right piece of software can convert the show to a digital audio file that can be redistributed online.
Sirius warned investors about the threat of piracy in a recent filing with the Securities and Exchange Commission. It noted that although it uses encryption to foil those who would try to listen to its broadcasts without paying, those protections might not always prevent theft. If such bootlegging became widespread, "it could harm our business," the company acknowledged.
But a little unauthorized exposure might not be all bad for Stern, whose curly-haired mug recently graced the cover of Esquire and New York magazines.
Industry analysts say people who hear Stern's show on their computer might enjoy it so much, they'll end up subscribing. Without the illegal downloads, it could be argued, Stern runs the risk of being out of earshot, out of mind.
"My view is that the more exposure, the better," said Jeff Pollack, CEO of Pollack Media Group. "If I find content very compelling, I might say, 'Wow, I sure want to be able to catch that every day.' "
But then again, Pollack said with a laugh, "I wasn't the one who signed the check."
The folks who sign the checks — and will do so for the foreseeable future — aren't laughing.
"Pirated broadcasts are a lousy way to listen to Howard," Sirius' Reilly said. "The best way is through a Sirius subscription."
Some longtime Stern fans agree.
"When it comes down to it, if you're a true Howard fan, you want to support his endeavor," said Pokai Liao of Irvine, a Sirius subscriber. "If you want him around for five years, you're gonna pay the $12.95."
from newswire.ca
February 1, 2006
"No one in radio commands more attention than Howard Stern," said Mark Redmond, SIRIUS Canada President and CEO. "He is an industry icon with millions of loyal fans throughout the continent who will follow him anywhere to hear his unique form of entertainment. SIRIUS Canada is committed to providing an unrivaled radio experience for Canadian subscribers with the most variety and choice available in radio, and Howard's show will make our unique entertainment offering even more exciting."
Premium Content
SIRIUS is the fastest growing satellite radio provider in North America and SIRIUS Canada is the leading satellite radio provider in Canada. SIRIUS Canada offers the widest range of premium content with 100 channels, including 60 commercial-free music channels; live sports play-by-play action from the NFL, NBA, NHL, English League Soccer and in, 2007, NASCAR; extensive news and information channels; comedy channels and entertainment from Martha Stewart and Maxim Radio, and the most Canadian content among satellite radio providers.
from Yahoo! Buzz
When Howard Stern was on terrestrial radio, his impact on the Buzz was unparalleled. All it took was an appearance on his morning radio show or his nightly E! TV show for a nobody to become a somebody in Buzz. Granted, most of the spikes were short-lived, but no one drove users to the Search box like Howard.a
Has his golden touch carried over to Sirius? After only three weeks, we can already see his mojo beaming from the satellites. He kicked off his show by welcoming new announcer George Takei, and Star Trek's Mr. Sulu reached new frontiers in Search -- up over 10,000% in queries during that first week.
In his second week, Stern started a vicious feud with Rachel Hunter after the former supermodel bailed on the show. His incessant ripping of Rachel during the days that followed led to a 81% spike in interest in Rod Stewart's ex. Reality-TV star Adrianne Curry came in for a four-letter-word-filled chat, and her buzz jumped 74%. Shawn King, the eighth wife of CNN's Larry, also saw her buzz boosted after a revealing sit-down with Stern about religion and sex. Ex-NFL player Roy Simmons, who dropped by for a frank talk about his homosexuality and troubled life since he left the league, enjoyed the same Search surge.
The third week, icy yet hot exchanges between celeb offspring Alexis Stewart, daughter of Martha, and Stern made for great radio and resulted in a whopping buzz increase of 5,739% for the younger Stewart. And when Howard mentioned his favorite brand of deodorant on air, "crystal deodorant" spiked in Search.
Finally, Stern's choice of Bubba the Love Sponge to follow his show in the afternoons is also paying dividends in Search -- queries on Bubba are up 53% this week, further advancing his strong uptick in Buzz since he rejoined the airwaves with Howard on January 9.
from RollingStone.com
By Rob Sheffield
Like most people who aren't from New York, I have always found it hard to pry my eyes open while Howard Stern is talking. In theory, I approve of the whole offensive/obscene/outrageous shock-radio shtick, but the only thing that's ever offended me about his show is how slow it is -- the guy sure does like to take his time between punch lines. When he was the king of terrestrial radio, he was more fun to catch on E!, with the hours of chitchat boiled down to a half-hour's worth of dick/fart/stripper jokes. Everybody assumed that he'd go wild on Sirius, since now he could swear all he wanted with no FCC or corporate suits butting in. Yet after just a couple of weeks on the air, his show already puts the "um" in "tedium." He sounds like he no longer has to deal with anybody who doesn't kiss his ass, and as a result he sounds like a bored, gloomy fifty-two-year-old man. How did this happen?
The bright spot of the show's opening week was Star Trek's George Takei, hired as the new announcer, sharing his gay-Hollywood memories with a constant "oh my" giggle. But he was live in the studio for just one week -- maybe not the shrewdest move, since he was the best new idea the Stern crew came up with in their holiday vacation. Howard spends most of the mornings talking about how famous he is, how loyal his listeners are, how many millions of people are running out to buy Sirius radios, while his studio monkey-boys crowd around the mike to say, "Right on, Howard. You still the king." Fans call in to remind him he's still got it. Howard shares fun facts about his personal life (he wears gloves to industry functions because he's nervous about shaking hands; he's had a nose job and liposuction under his chin). He tries to play Allman Brothers songs on guitar (they're too hard) and has phone sex with Jessica Hahn (he doesn't enjoy it).
He talks a lot about how bad his New York replacement, David Lee Roth, is. If you thought his sidekicks were useless suck-ups before, get a load of them now. Robin compares him to Martin Luther King Jr. Artie says the main reason he wishes his father were still alive is so he could hear him on The Howard Stern Show. "We're making history," he gushes. And this was the first seven days. By next month, Howard will only be able to keep himself awake ordering the staff to do tag-team ass-to-ass action.
No wonder he's bored -- he's got nobody to piss him off anymore. He's on his own network, with two whole stations mainly devoted to "Howard 100 News," including post-show recaps and a "Superfans Round Table." His new bosses have even cleared the way for him to sell off $200 million worth of shares in Sirius stock. But he's already dreaming of the next gig, musing that he should form a supergroup with Bubba the Love Sponge, Rush Limbaugh and other talk-radio giants. "You know, a supergroup," he explained to Robin. "Like Blind Faith -- they were a really great supergroup." But on the first day he was already back to railing against the FCC and corporate censors -- nostalgic for the good old days when he had enemies, reminiscing about how badass he used to be.
Roth's show is more interesting just because it's so skin-crawlingly awful. In these days of bland Clear Channel/Infinity corporate radio, it's bracing to hear a guy who has no idea what he's doing. He can't remember too many of the wild sex and drug stories from his Van Halen days, so instead he talks about being an EMT (he's delivered babies: "I'm on my fourth," he says) and interviews his eighty-eight-year-old Uncle Manny, who used to book Bob Dylan. It's the voice of an archetypal American loser, refusing to admit his eat-'em-and-smile days are over. Listening to Roth, you feel actual physical pain. I bet Howard must be jealous.
[Ed. - Howard said this story was not true on today's show. If you see the name Jack Thompson in any story about Howard, look out.]
from the NY Post
January 23, 2006 -- Howard Stern may be coming down with a Sirius case of the bleeps.
High-level executives of the satellite broadcaster are developing an internal standards-and-practices document that will set boundaries for Stern and other shock jocks, The Post has learned.
“It’s something that’s being taken very seriously," a Sirius source said.
Stern's new show also is being broadcast on a time-delay, giving him the opportunity to censor the program — which he already has done.
Stern moved to Sirius in part because satellite-radio services such as Sirius and XM — unlike free terrestrial radio — are not policed by the FCC, which spent years waging an indecency war against him.
The battle resulted in big-bucks fines against Stern and his former employers at Viacom.
XM, which is now home to shock jocks Opie and Anthony, confirmed that it has had its own guidelines in place for some time, but declined to provide details.
The standards of the private satellite broadcasters can be far looser than those imposed by the FCC on the public airways.
Sirius' move toward self-censorship comes as pressure continues to mount in Congress to regulate programming on cable and satellite radio and TV.
For years, cable executives have resisted government threats of regulation, claiming that self-policing has been sufficient.
It's a move satellite radio seems to be getting ready to emulate.
But even with Stern safely out of the FCC's reach, his foes, including self-appointed anti-obscenity crusaders like John B. Thompson, argue that other government agencies should take up the cause.
"The DOJ [Department of Justice] now has the chance to make amends for its laxity during Stern's criminal conduct on terrestrial radio for 25 years," the Florida lawyer wrote to Bruce Taylor, who oversees the DOJ's Criminal Division in a Jan. 9 letter obtained by The Post. Meanwhile, Stern himself has asked for some restraint on his show, encouraging his staff not to use profanity too often.
On one occasion last week, Stern even "dumped" out a minor bit of his own broadcast to protect the identity of a staff member's family.
On Stern's old show, the dump switch was controlled by station officials, who frequently bleeped out racy material.
It's not clear whether Stern knew he'd be subject to any limitations when he signed on with Sirius, which is paying him about $100 million a year.
He also was awarded $220 million in stock after the company reported that it had signed up more than 3 million new subscribers, boosting its total to 3.3 million. XM has more than 6 million subscribers.
Sirius officials did not return calls for comment on the proposal.
The imposition of loose standards is not likely to put much of a dent into Stern's free-for-all broadcasts or scare off any of his advertisers, an expert said.
"I believe this is just an attempt to put things in place if and when [the government] turns up the heat on satellite radio, much like it has with cable from time to time," said Robert Thompson, director of the Center for the Study of Popular Television at Syracuse University.
"In the end, it won't mean much to the average listener or advertiser."
Advertisers are paying less for Stern's spots on Sirius than they did for his show on traditional radio — especially since there is no way to verify how many Sirius subscribers are tuning in to his show.
Sources said it may be as little as half of the $20,000 per 30-second spot that had been floated when he signed up.
from greenwichtime.com
January 22, 2006
NEW YORK -- Wires hang from the ceiling.
Plasma televisions wait to be mounted in the lobby.
A technician rigs the wires of a robotic spanking machine.
Pardon the appearance, but for "Howard Stern Show" producer Gary "Baba Booey" Dell'Abate and the show's 40 other crew members, certain things take priority two weeks into the shock jock's move from the FM dial to Sirius Satellite Radio.
"We're still not unpacked," Dell'Abate, 44, a married father of two from Greenwich, said last week on the show's new midtown Manhattan set.
An Adirondack chair with arm and leg straps that Stern uses to tickle his female guests got unpacked.
So did Dell'Abate's computer, which is deluged with e-mails from representatives of publicity-hungry celebrities who hope to tap into his famous boss' star power.
Jon Stewart, Bernie Mac, Gilbert Gottfried, P. Diddy, Roger Ebert and Rachel Hunter fill out a growing guest list that the Stern sidekick said he hopes to complement with a kiss-and-tell from Britney Spears hubby Kevin Federline.
"Your probably worst transgression on the show is if you're dull," said Dell'Abate, whose job it is to often remind the show's guests that nothing is off limits.
"I talk to publicists and they say, 'You can't talk about this, you can't talk about that.' I would say, 'You're probably better not coming on.' The show is bigger than any one guest.' "
Hired by the "King of All Media" as a gopher 21 years ago, Dell'Abate's role on the show has expanded with the transition to satellite radio, which costs subscribers $12.95 per month.
Dell'Abate co-hosts a wrap-up show after Stern's usual 6 to 10:30 a.m. weekday broadcast. As is the case with guests of the regular show, Dell'Abate's personal life is fair game.
"Your wife, by the way, Gary, told my wife at the (Sirius launch) party that you don't do (expletive) around the house," Stern show regular Sal "The Stock Broker" Governale told Dell'Abate on the wrap-up last week.
"Did she really say that?" Dell'Abate asked.
Stern's hours-old revelation that he had cosmetic surgery on his nose and chin dominated the conversation, however.
Stern regular Robin Quivers teased that there was more to Stern's revelation.
"Like I said, a penile enlargement," Quivers said.
While the network's legal policy requires the show to have a several second delay, the Federal Communica-tions Commission does not regulate satellite radio for decency.
"It's all unbleeped, right," Dell'Abate said, requesting an uncensored copy of an old clip from the show when it aired on K-Rock from a crew member.
A self-described family man who coaches his two sons' Little League teams and has helped organize a carnival at their elementary school for the past three years, Dell'Abate said cast members don't go out of their way to use expletives on the show.
"We're not dropping it gratuitously," he said. " We're going to talk the way people talk around the office."
Office is a relative term, however.
On the show's new set, a bikini-strewn trapeze hangs from the ceiling.
"If there's a girl who comes in here and says, 'I don't have a bikini,' we can just lower the bikinis," Dell'Abate said, conceding his job is slightly different than most. "I think a lot of people are like, 'Holy (expletive), I can't believe I'm getting paid to do this.' "
A familiar face in pizza parlors, the pharmacy and supermarkets around town who calls himself "approachable," Dell'Abate said he has gained acceptance among the other parents with whom he deals despite his on-air antics of coaxing female guests to go topless or bottomless.
"I don't get any crap from the other parents about the show," he said.
In contrast, Dell'Abate said his decision to make Greenwich his home for the past 11 years has earned himself considerable ribbing from his fellow cast members on the show.
Dell'Abate developed a come-back as a result.
"I go, 'You know where Kathie Lee lives? I don't live near her,' " Dell'Abate said.
A Long Island native who graduated from Adelphi University in Garden City, N.Y., with a degree in communications, Dell'Abate said he held a bunch of "crappy" radio jobs before he found his calling with Stern and was tagged with his famous nickname after he mispronounced the name of a cartoon series.
"It was me and another guy, and I just got lucky," he said.
A typical day, if there is such a thing in his line of work, begins at 4:30 a.m. for Dell'Abate, who must leave his house around 5 a.m. to make the start of the show. The Stern sidekick jockeys back and forth between the show's set and his office, his attention divided between a television showing the broadcast and his computer.
"Baba Booey," as he is often reverently called, is a multitasker in every sense of the word, typing the names of the show's guests into a calendar on his computer and helping to choose which audio clips -- some of them from X-rated movies -- to use on the air.
Dell'Abate gets considerable help from producers and interns, who work in an office attached to his own that he calls the "bullpen." But when it comes to a question, other than Stern himself it is "Baba Booey" who calls the shots, reminding one staff member to put a disclaimer on his voicemail telling callers that their messages might be used on the air.
And then there's correspondence from listeners.
"Oh God. Lots of prison mail," said Dell'Abate, who in addition to nude photos from aspiring pinup girls, once received a matchstick carving of the Disney character Goofy from a fan.
Most days end around 5 p.m. for Dell'Abate, who said he tries to beat traffic by taking an intricate route back to Greenwich.
"I found a great secret way to get home," said Dell'Abate, who spends his ride listening to satellite radio and brushing up on his knowledge of trivia for a segment of the show called "Stump the Booey," in which female guests must bare all if they fail to match wits with him.
In addition to the regular broadcast and wrap-up show, Sirius subscribers can hear news clips about Stern, his colorful entourage and their escapades. That lineup has helped translate to 3.3 million subscribers for Sirius, said Dell'Abate, pointing to a computer showing the satellite's position in space over the Western hemisphere. By 2010, Sirius and its rival, XM Satellite Radio, are expected to command 40 million subscribers, Dell'Abate said.
"We're banking on it," he said.
Loyal listeners of the show include Dell'Abate's wife, who he said tunes in despite frequent discussions on sensitive topics such as their sex life.
"She's cool," said Dell'Abate, who spends the evening at home with his family. "She knows this is what we do. We're putting ourselves out there."
Dell'Abate does not let his two sons listen to the show, however.
"It's just not appropriate for an 11- or 8-year-old," he said.
ALL THE HYPE SURROUNDING HOWARD STERN'S MOVE to Sirius Satellite Radio and his outsized $600 million, five-year contract has lifted the profile of an industry that barely existed just three years ago.
Much has been written about the King of All Media's departure from floundering terrestrial radio to the uninhibited world of satellite radio, and his raunchy Sirius debut on Jan. 9. Yet there hasn't been a lot said about the economics and financial prospects of Sirius and its only direct rival, XM Satellite Radio.
Wall Street actually hasn't been swept up in the Stern hoopla; investors seem to be taking a cautious view of the two as they change from speculative "story stocks" valued largely on subscriber growth to ones that are being judged more on such traditional financial measurement as profits and free cash flow. "The stocks are discounting a lot of good news, and they have large valuations," says JPMorgan satellite-radio analyst Barton Crockett.
For companies with modest revenues and still-sizable losses, XM (ticker: XMSR) and Sirius (SIRI) have nontrivial stock-market values -- $10 billion for Sirius, $9 billion for XM. These figures are based on fully diluted share counts for both companies that include convertible debt and other equity-linked securities. Sirius and XM shares are up more than 10-fold from lows reached in late 2002 and early 2003, when the Street questioned their financial viability. Yet the stocks have come under pressure during the past year, despite a doubling in their combined subscriber numbers to more than nine million. Market-leader XM, which began its service in 2001, about a year ahead of Sirius, now has six million subscribers, while Sirius has 3.3 million.
So far, the shock jock is paying dividends for Sirius. In anticipation of his debut this month, many of his fans signed up for subscriptions.
The chief investor concerns are the path to profitability and the ultimate size of the satellite-radio market. Will satellite-radio subscribers top out at 20 million, 30 million or 50 million? There now are more than 200 million listeners to conventional AM and FM radio. Perhaps the more important questions are: Will incremental satellite subscribers prove more costly to obtain, and will currently high customer loyalty begin to decline as the services become mass-market products, resulting in increased -- and expensive -- customer churn?
XM was hurt by recent news of weak fourth-quarter growth in new radio subscribers from its automotive partners, primarily General Motors (GM). This raised some questions about the growth rate for satellite radio in the critical vehicle market.
Sirius shares, at around $6.30, are below a peak of $9 hit in late 2004 and a recent high of almost $8 at the height of the pre-Stern enthusiasm last month. XM, at around $28, is near its 52-week low of $26, and well below its record of $40 reached in December 2004. Sirius bottomed at 40 cents in early 2003, and XM hit a low of under $2 in 2002.
Investors are wondering whether it's worth taking the risk involved with satellite radio operators, which aren't expected to produce significant profits until 2009. There are plenty of investment alternatives in the depressed media, satellite-TV and cable-TV sectors. Companies like Time Warner, Gannett and CBS have substantial current profits and free-cash-flow yields of 5% to 8%, based on estimated 2006 earnings.
"I think this is a classic case of investing in companies during the romance phase and avoiding them in the reality phase," says Rob Lutts, chief investment officer at Cabot Money Management. "Let's see the first dollar of profits before we start talking about billions." Lutts isn't fazed by richly valued companies, but he'd much rather own Google (GOOG), which is producing ample profits now, than the satellite radio duo.
Looking out a few years, new and competing technologies, like wireless-music services offered by cellular-phone companies, potentially could challenge satellite radio.
The current financials of XM and Sirius aren't pretty. Sirius last year likely had revenue of less than $250 million, an operating loss of more than $800 million -- and a loss of 65 cents a share. XM probably produced revenue of $550 million, an operating deficit of $500 million and a loss of almost $3 a share.
Contrast this with Clear Channel Communications (CCU), the leading terrestrial-radio operator, which probably had $9 billion of revenue and almost $1 billion in free cash flow last year. Clear Channel's equity value is $17 billion. The good news is that both XM and Sirius have ample cash that they say is sufficient to take them to cash-flow breakeven.
Barron's has written periodically on satellite radio, including a bullish cover story three years ago ("A Sound Idea," Feb. 17, 2003), when XM and Sirius were a fraction of their current prices. We've consistently favored XM over Sirius, and we still do, despite Sirius' strides in the past 18 months. In addition to snagging Stern, Sirius hired Mel Karmazin, a veteran radio executive and former president of Viacom, as its CEO in late 2004.
"Satellite radio is one of the few secular-growth stories in media and industry in the early innings of growth," says Eileen Furukawa, the satellite analyst at Citigroup. She likes both companies, but says XM stock is the better value.
Here's why XM looks more attractive than Sirius:
XM and Sirius have market values that aren't too far apart, but XM has almost double the number of subscribers. XM is likely to maintain its lead in the coming years because it has a stronger stable of automotive partners than Sirius, including all of the major Japanese car makers, starting in 2007. XM's partners control about 60% of the U.S. auto market.
"It's a significant disappointment to us that our market cap is lower than that of our competitor," says Gary Parsons, XM's chairman. "We have more subscribers, and we add them at a fraction of the cost." XM's cost per acquiring a subscriber is roughly $100, versus about $200 for Sirius, although Sirius aims to bring down those costs. "Investors at this point don't seem to be valuing that we're twice as large and twice as efficient" as Sirius, Parsons says.
The similar market values of Sirius and XM could reflect the momentum that Sirius received from the Howard Stern launch and the vastly different shareholder bases of the two companies. XM is the institutional favorite. Sirius counts a huge number of retail investors and limited institutional ownership. Sirius typically is one of the most active Nasdaq stocks, sometimes trading more than 100 million shares a day. Jim Cramer, the host of CNBC's Mad Money, has been a Sirius fan.
XM and Sirius have demonstrated that large numbers of Americans will pay for something that they used to get free. Both charge $12.95 a month or $142 a year for 125-plus channels of commercial-free music, news, talk and personalities like Stern. One misconception is that Sirius and XM share programming.
Looking ahead to 2010, a significant chunk of the estimated 17 million vehicles expected to be sold in the U.S. could have satellite radio as standard equipment. Both XM and Sirius may add three million subscribers annually in the next few years.
Commercial radio helped create the opportunity for XM and Sirius, as the industry alienated listeners by adopting homogenized formats in the 1990s and barraging them with as many as 20 minutes an hour of commercials. XM and Sirius recognized that there was a broad national audience for jazz, classical, blues and folk music -- even if those genres couldn't support commercial stations at the profit margins demanded by Clear Channel or CBS Radio. At a time when Oldies stations are disappearing from the air -- New York's WCBS-FM, for example, switched to a more eclectic "Jack" format in the hope of drawing a younger audience -- XM's 'Seventies station draws almost two million listeners a week, which would make it one of the country's largest individual radio stations. Bob Dylan now has a radio show on XM, while Sirius has Eminem.
THERE'S TALK ABOUT COMMERCIAL RADIO blunting the appeal of satellite radio by creating niche channels using emerging digital technology. Don't bet on it. Radio titans, like CBS chairman Sumner Redstone, still don't view satellite as a major threat.
The financial beauty of XM and Sirius is that they can just as easily serve 50 million subscribers as nine million with their satellites. Compare the duopoly in satellite radio with the looming free-for-all as satellite TV, cable TV and the Baby Bells fight for video and voice customers in a battle that the Street fears nobody will win.
Stern isn't to everyone's liking, but one of the benefits of satellite radio is that there are more than 100 other channels from which to choose. Sirius not only gave Stern a morning show, but two channels to program. Among the features are Tissue Time with Heidi Cortez, a phone-sex maven; Crack Whore View; and Meet the Sterns, featuring Stern's parents. Because Sirius is pay-radio, Stern likely will not be subject to the same indecency scrutiny from the Federal Communications Commission that bedeviled him at Viacom, his former employer.
So far, Stern is paying dividends for Sirius. Prior to his signing in October 2004, Sirius was a weak No. 2 to XM. In the latest quarter, Sirius added more subscribers than XM for the first time, thanks to satellite-radio purchases by Stern's fans. Stern needed to generate one million incremental subscribers for Sirius to break even on his contract, and it looks as though he has delivered. But those Stern groupies will have to stay with Sirius for Stern to pay off over the five-year life of his contract.
One of the risks with Stern is that his pull will wane because his Sirius audience is far smaller than the one he enjoyed in conventional radio. And Sirius hasn't been helped recently by Stern's early decision to file for the potential sale of the 34 million shares that the company granted to him and his agent as part of his outsized contract. It's not known whether he has unloaded any stock, but the filing prompted some fans of the company to accuse Stern of potentially pursuing a "pump and dump" strategy after relentlessly promoting Sirius in recent months. There are prudent reasons for Stern to sell some Sirius stock, because he will owe taxes on the entire $200 million stock grant this year.
Back in 2003, both XM and Sirius projected that they would hit cash-flow breakeven with two million to three million subscribers, but XM and Sirius may not hit cash-flow breakeven until 2007, when their combined subscribers should top 15 million. One of the chief culprits had been a bidding war for programming. Sirius snared a seven-year contract with the NFL for $232 million, while XM paid $650 million for an 11-year deal for Major League Baseball.
David Frear, Sirius' chief financial officer, says programming costs are likely to be contained, and he sees continued low customer churn, given the high satisfaction with satellite radio. "We don't see any blockbuster pieces of programming to do, now that all of the major sports properties are spoken for and the preeminent talk-radio personality is spoken for." Sirius will gain Nascar in 2007, when it leaves XM, while XM will add the National Hockey League, which should help the company as it expands into Canada.
XM talks about achieving cash-flow breakeven in 2006, but most analysts assume that won't happen until 2007, using a conservative measure of free cash flow that includes capital expenditures. The table nearby shows estimates from JPMorgan's Crockett. He sees XM producing free-cash flow of $188 million in 2007, $528 million in 2008, $923 million in 2009 and $1.4 billion in 2010.
Cash-flow estimates from Street analysts are all over map, reflecting the inherent difficulties of making financial projections four years out. Citigroup's Furukawa sees XM generating about $900 million of free cash in 2010, $500 million less than Crockett.
XM's Parsons says the company believes that it can generate $100 million of annual free cash flow for every million subscribers above financial breakeven. This implies that XM could have more than $1 billion of free cash flow in 2010, when it expects to have 20 million subscribers. With a current market value of $9 billion, XM trades at a 10%-plus free-cash-flow yield based on potential 2010 results. If XM trades in 2010 at a 5% cash-flow yield, it suggests that its stock could double by then.
Sirius' cash flow is expected to trail XM's because it's growing from a smaller subscriber base. JPMorgan's Crockett sees Sirius generating $622 million of free cash in 2010, while Citigroup's Furukawa projects $643 million. These projections suggest less upside potential for Sirius shares.
XM's automotive-contracts edge is significant: Car makers are ramping up production of vehicles that are factory-equipped with satellite radios, and consumers prefer buying cars that can be immediately driven off the lot with them, rather than having dealers install the radios. XM also has ancillary data services, such as NavTraffic, which integrates live traffic reports into the navigation systems of the Acura RL and some Cadillacs.
Auto makers generally have lined up in either the XM or Sirius camp. XM has General Motors, which has been the most aggressive installer of satellite radios. There now are about two million drivers of GM cars with active XM radios.
Honda (HMC) also is aligned with XM. Its luxury division, Acura, now has XM radios as standard equipment in its cars. And behemoth Toyota (TM) plans to roll out factory-installed cars with XM radios later this year. Toyota's new Lexus flagship, the LS460, is likely to come standard with an XM radio and NavTraffic. Nissan (NSANY) plans to roll out factory-installed XM radios in 2007. Fast-growing Hyundai plans to make XM a standard feature in its cars by 2007. The car makers in the XM camp could approach a 65% U.S. market share in the coming years.
The bad news for XM is that, at least this year, it will be highly dependent on General Motors, whose woes likely won't help it sell cars. Subscriber additions from GM were weak in the fourth quarter.
Sirius' key partners are Daimler Chrysler (DCX), Ford (F) and BMW. Daimler is further along than Ford, which doesn't plan widespread availability of factory-installed Sirius radios until later this year. The vast bulk of Sirius radios are purchased by consumers at retailers like Best Buy and Circuit City, rather than as standard equipment in cars.
XM had a nine-month head start launching its service because its in-house technology was available earlier than Sirius' outsourced technology, and XM has maintained a technological lead since then.
The XM edge could be evident in the coming launch of portable devices from Pioneer and Samsung that will combine a live XM radio and MP3 recording capabilities that will allow users to store 50 hours of programming, including music recorded off XM channels (see Our Gadget of the Week.) One limitation is that music recorded from XM's 160 channels can't be moved from the device and will no longer be accessible if the XM subscription lapses.
The music industry isn't crazy about such devices, including one from Sirius called the S50 that allows subscribers to record off the air. XM and Sirius now pays less than $1 a month per subscriber in royalties to the music industry, far less than the estimated $4 to $6 a month that RealNetworks' Rhapsody and other subscription services pay.
Later this year, key agreements expire between XM and Sirius and the music companies. The music industry is apt to seek higher payments, arguing in part that XM and Sirius' recording devices are turning XM and Sirius into interactive services. "We do not believe the [music] labels will succeed in converting the framework of the satellite radio service from radio to interactive service," wrote Morgan Stanley's Benjamin Swinburne in a client note. He warned that it would be "catastrophic" for satellite radio if the music industry could succeed in imposing costly Rhapsody-type royalties on XM and Sirius.
XM and Sirius also have developed a host of retail products, including radios that can be self-installed in cars, boom boxes for home use and MP3-type players priced from $50 to $500 to broaden the market.
It's important to recognize that there are few companies in today's stock market like XM and Sirius, with robust market values and only modest revenues. Yet both are legitimate growth stories with clear paths to profitability. Assuming that XM and Sirius stay rational and Americans don't tire of satellite radio, the two companies are apt to make good money within a few years. But given XM's edge in subscribers, automotive partners, technology and customer-acquisition costs, its stock looks like the better buy.
from the New York Daily News
January 18th, 2006
For this he went under the knife?
Satellite radio shock jock Howard Stern, whose long face, big nose, pointy chin and tangled curls gave him the perfect face for radio, admitted yesterday that he's had not one, but two plastic-surgery procedures.
In a series of on-air "revelations" designed to promote Stern's move to Sirius satellite radio, 11 staffers disclosed secrets about themselves.
Stern weighed in yesterday with the confession that he had a nose job nine years ago — right after the filming of his movie, "Private Parts" — and liposuction not long after to suck out the waddle of fat under his chin.
He explained that, while he'd always hated his nose, doctor after doctor told him not to touch it. Finally, he said, one sketched out a simple fix that would pare away his speed bump, so he decided to have the surgery.
So why keep the news under wraps until now? With signature snarkiness, Stern said he discussed it with almost no one because he thinks the idea of plastic surgery is "very gay."
Besides, he added, he doesn't think anyone — besides his sister Ellen — even noticed.
He may be on to something there.
"It hasn't helped!" laughed New York plastic surgery consultant Wendy Lewis. "Whatever he had done, it must have been very subtle, although, with all that hair, it's hard to see his face very clearly."
Plastic surgeons, though, agreed that the 6-foot-5 Stern couldn't have gone from a beak to a button.
"The old nose was way out of proportion to the rest of his face," said Park Avenue plastic surgeon Geoffrey Tobias, who specializes in rhinoplasty. "But he's got very prominent eyes, a lot of hair and a lot of character. He doesn't have to have a small nose. Having a good-size nose with good character is proportionate to the rest of his features."
Actually, Stern confessed that his biggest fear was not how he'd look after a nose job but how he'd sound. Instead, Stern said, the surgery actually improved his voice.
Still, he claimed it isn't the face work that makes him look "better" these days, but the fact that he works to stay in shape.
Of course, it doesn't hurt that he always has a blond, 5-foot-10-inch model on his arm.
from the NY Daily News
by David Hinckley (with Richard Huff)
Turns out Howard Stern isn't completely gone from terrestrial radio after all.
Illegal pirate radio broadcasts of his Sirius Satellite program have been heard this week - for free - on broadcast radio, including 95.1 FM in Brooklyn and 101.5 FM in North Jersey.
That presented a potentially startling situation yesterday for listeners in the Newark/Secaucus area who suddenly heard Stern replaying the obscenity-laced Pat O'Brien tapes and song parodies using words that can't be printed here.
Such language is legal on Sirius, which has no Federal Communications Commission regulations on its content, but quite illegal on over-the-air broadcast radio.
Sirius spokesman Patrick Reilly said yesterday that the company had heard nothing about Stern popping up on free radio, and said he would have no comment on it.
FCC spokesman David Fiske, whose agency Stern accuses of driving him from terrestrial radio, said he didn't know of any complaints about the apparent pirate transmissions.
"Pirate broadcasting is something we take very seriously," Fiske said, "although the content per se would be of no concern to us in the case of Howard Stern, since the FCC does not regulate satellite radio."
Program director Eric Johnson of WKXW in Trenton, which broadcasts legally on 101.5 FM, said he had gotten no listener calls, "so the pirate must have been working in a small area."
Johnson said unknown pirates used the 101.5 FM frequency in Brooklyn this summer. "I don't know what you do about it," he said. "You'd like to catch them, but it's like finding a needle in a haystack. Fortunately, they come and go."
The 95.1 FM frequency is vacant.
Technologically, said Tom Taylor of the trade magazine Inside Radio, it's "very easy" to take Stern's satellite program and transmit it on a broadcast frequency. Anyone receiving the Sirius transmission could download it to a computer or other receiving device, then broadcast it through an inexpensive antenna.
"You only need about $1,500 worth of equipment," Taylor said. "It's illegal, of course, but it's attractive to some people because even if you're caught, FCC enforcement can be a slow process."
Several dozen pirate stations operate regularly if erratically around the New York area, many playing Caribbean and other genres of music that don't have a regular home on city radio.
Fiske said the FCC doesn't comment on investigations or pending actions, though he suggested the country's largest pirate problem now is in Southern Florida.
from the NY Times
January 12, 2006
David Lee Roth's new morning radio show has made one thing clear: Howard Stern is one ingenious pervert.
It's not that Diamond Dave has been knocking Howard, whom he replaced on some several stations on Jan. 3 as Mr. Stern moved to satellite radio. In fact, Mr. Roth has been smarmy and collegial about the King of Difficult to Acquire New Media. But Mr. Roth makes the point about Mr. Stern's pervy ways by contrast with his own, since Mr. Roth's own efforts to come across as a dirty devil - boasting of girls girls girls and chugging Jack Daniel's - seem pitiful compared to even the slightest heavy-breathing utterance of Mr. Stern's.
Meanwhile, on Sirius Satellite Radio, where "The Howard Stern Show" started with some tech difficulties on Monday, Mr. Stern has turned in respectably true-to-form programs that display his maestro skills with his nasty-geek persona. So far, he hasn't departed much from the tone and structure of his old Infinity radio show; though on Sirius he's now free to say what he wants, he has resolved to curse sparingly. He's still panting after lesbians, pushing the subject of genital grooming and laughing at people like Pat O'Brien, the television host who was said to have left obscene voice-mail messages for an acquaintance. Mr. Stern also barrels into impolitic topics that the rest of us are afraid to broach: Yesterday he asked a gay radio personality whether his lisp was an affectation or a speech impediment.
Mr. Stern, as his fans know, is born for radio: his on-air character is an unwashed basement figure, best kept out of sight - a haggard masturbator and morbid misanthrope who must hang out with deformed and desperate men because he can hardly perform with women. The fact that the pinup girls who come on his show now seem to want to have sex with him is, in his telling, evidence only of the women's ambition and depravity.
The Stern character simply hates his guests and co-hosts as he hates himself; he's a mean little pornography-addicted freak whose self-loathing reverses itself only in fits of equally grotesque narcissism, as when he flashes his listeners with a dirty raincoat by disclosing disgusting secrets about himself. But his relentlessly loser style makes him seem honest, and wins him a privileged relationship with the truth; fans believe what he says - about everything from politics to back pain to etiquette. He has hewn his character brilliantly.
By contrast, Mr. Roth is a jaunty frontman - really, Mr. Stern's opposite. In his heyday singing with Van Halen, he was a red-blooded dude who bounced around, yelped the high notes and handily pulled the bikini chicks. There was nothing depressing about Diamond Dave's sexuality: it was happy, voracious, superficial. He postured with the best of the hard-rock studs, strutting around with his moussey hair and Spandex pants. Had Mr. Roth's big-dog persona met Mr. Stern's gamma-male one, they would not have partied together.
But on radio, the tables are turned. A doctor's son who worked recently as an emergency medical technician, Mr. Roth is far too square for the morning slot. His stories about his drunken antics of the late 1970's - or, worse, about the 50's in crazy Greenwich Village, where his uncle Murray owned the Café Wha? - ring obsolete. And he won't reveal much about his life now, refusing to answer even routine questions from fans about his love life. As a result, his sanctimony on subjects from drugs to plastic surgery to celebrity misdeeds, is unearned. If he won't say anything about himself but bland boasts about his glory days, why should he get to tell us what to do?
Finally, Mr. Roth's tenor, which is can be poignant and otherworldly on Van Halen songs like "Jamie's Crying," is surprisingly grating and banal when he's speaking. Listeners to regular radio will miss Mr. Stern's low, unerring, New York-inflected voice - and the depth of weirdness it unfailingly conveys.
from msnbc.com
The eve of the first Howard Stern broadcast on Sirius Satellite Radio, three questions hung in the air. Without a common enemy to rage against, such as the FCC, will the show lose its spirit? Without the "decency" limits of terrestrial radio, will the show become overly gratuitous and unlistenable? And perhaps the most burning question: Did Howard and girlfriend Beth Ostrosky get married recently while on vacation in Mexico?
All three questions were answered before the 6 a.m. show hit its second hour. A fourth question, as to whether any of Stern’s listeners would pay $12.95 a month to hear him, was answered by Christmas, when 180,000 new subscribers activated their accounts. It was confirmed on Sunday, January 8, the day before Stern’s Sirius debut, when subscription telephone activation was delayed nine hours due to caller volume. New York City-area Best Buy and Circuit City stores sold out of Sirius receivers that same weekend.
The Stern-inspired spike boosted Sirius listeners to more than 3 million. Whether satellite radio can stay afloat remains to be seen. As to the quality of Stern’s show, it remains as great (or has horrible--depending on individual tastes) as ever.
Yes, Stern is still irritable and potty-mouthed. The dynamic between his crew remains amicably contentious. Yes, there is cussing--enough to drown Stern in FCC fines had it been a terrestrial radio broadcast--though no more than an average conversation between teenagers on a city bus. No, Stern did not get married--though he pranked both his staff and audience by initially telling them he did. For the most part, it’s business as usual. And yes, it’s worth the money.
Stern’s Sirius stations, Howard 100 and 101, have been on the air for months, featuring various shows of a "Howard sensibility." But the weekend before Stern’s debut, the stations remained in relative radio silence--only a heart beat and occasional sound bites spanning Stern’s career. "Join the Revolution! 1-9-06," scrolled across the Sirius receiver LED screen. By 6 a.m., "SHUT UP!" silenced the quickened heartbeat, and the 800 Stern phone number replaced the scroll, spelling an expletive with its corresponding letters.
The theme to "2001: A Space Odyssey" began, with flatulence as the lead instrument. Musical bodily functions are a staple of the Stern show, so it was business as usual. The familiar baritone of George Takei (Sulu on "Star Trek") announced the cast. After the introduction, Stern announced that Takei, the good-natured victim of many Stern-show pranks, is now the official show announcer.
Despite the much-ballyhooed high-tech studio, technical difficulties were somewhat a problem during the first few minutes of the show. Long-time Stern fans, however, are familiar with his constant kvetching over equipment. Stern’s tinny earphones and comedian Artie Lange’s microphone were quickly addressed while sound effects man Fred Norris played Tom Petty’s "The Last D.J." Music provided the only breaks during the day, as the debut show was commercial free. Following shows will feature six-minute commercial breaks per hour).
Stern addressed swearing right off, announcing that he would avoid expletives, as it gets old fast. "We are going to new places, and that does not mean the F-word," he said. "What it means is something really important. We can do anything we want." Within minutes of this announcement, Stern let a few expletives slip, and quipped that these particular words were no longer considered swearing.
The most blatant expletive abuse came from tapes the Stern show couldn’t air while on terrestrial radio. Specifically, "Insider" host Pat O’Brien’s notorious sexually explicit telephone message was played in its entirety.
Captain Janks, the most successful Stern crank caller, phoned in with recent recordings of expletive-laced calls to CNN. The tapes only emphasized Stern’s contention that this stuff gets old. Frankly, Janks calls are much more creative when he operates within the constraints necessitated by terrestrial radio.
Stern, however, never approached the obscenity critics foresaw, and the show’s energy never flagged. The most anticipated moment was possibly the best of the day. Stern casually announced to a caller that the rumors are true, he was recently married. His crew exploded (figuratively). Co-host Robin Quivers demanded the million dollars she wagered when Stern said many times before that he would never remarry. Lange wanted to know about a prenup, bemoaning that now he would have to get married too. Producer Gary "Baba Booey" Dell’Abate questioned why Stern would advise against marriage and then do it himself.
Finally, Stern ended the joke, announcing that he wasn’t really married. But the topic didn’t end there. At the 8:30 a.m. news conference, reporters (including members of the Howard 100 news team) repeatedly asked Stern whether he was married. For his part, Stern remained confident and articulate, and stuck to the talking points--that he does not feel 43 cents a day is too much to pay for satellite radio, given its many features, that Sirius subscriptions are soaring, and that satellite radio is the future. Of course, Stern also threw around the obligatory banter, making graphic sexual revelations and complementing female journalists on their cleavage.
Helen A.S. Popkin, a New York writer, hit every electronics store in the tri-state area this weekend looking for a Sirius receiver. Happily, some kindly dope-smoking young clerks in remote Brooklyn dug one out of their store basement.
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This page © 2007-2008 by The Complete Howard Stern Links!
Stern Warning Gets Post Writer Canned
By Jeff Bercovici
September 22, 2006
Stern Turns Deaf Ear To Free Radio
Greg Levine, Sept. 20, 2006
Rip, Mix, Stern
September 20, 2006
Longtime Fool contributor Rick Munarriz is a Sirius and XM subscriber, but he doesn't own shares in any of the companies mentioned in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.
NO RETURN TO EARTH: HOWARD
By JOHN MAINELLI
Sirius: Stern not going anywhere
By David B. Wilkerson, MarketWatch
Last Update: 5:19 PM ET Sep 19, 2006Sirius denies reports Stern returning to mainstream
from Reuters
By Lisa Baertlein
By JOHN MAINELLI
The Top 10 Labor Day requests
On Labor Day weekend Howard 100 played many, many tapes from WXRK that fans had requested to be played. Here's the list of the Top 10 requested bits:
10. Fred's Bachelor Party
9. Philadelphia funeral for the Zookeeper
8. The Jesus Twins
7. Hank the Angry, Drunken Dwarf
6. Cabbie vs. Stuttering John fight
5. The Gary Tape
4. High-pitch Eric and the Fish
3. "Marge Schott" apology
2. Artie's Cocaine in a Pig Suit story
1. Cookie Puss
Bridge Ratings Consumer Trends: Satellite Radio Q3 Subscriber Trending
is to analyze consumer preferences related to satellite service brand and satellite radio in general.
8/18
8/11
8/47/287/146/306/166/2
45
49
565450444038
a 60% share this year with 3.4 million new subscribers compared to XM's 2.1 million.
Wk Ending:
8/19
8/12
8/05
7/29
7/227/157/08
XM
45%46%50%45%42%48%45%
Sirius
55%54%50%55%58%52%55%
Wk Ending:
8/19
8/12
8/05
7/29
7/227/157/08
XM
38%45%41%38%35%37%42%
Sirius
62%55%59%62%65%63%58%
XM.84
Sirius1.13
This week's interviews shows that 38% of retail consumers purchased XM satellite radio systems while 45% mentioned the XM brand
first prior to the purchase. The index of purchase to brand awareness indicates that 45% of potential satellite radio shoppers interviewed this
week were able to name XM as the top-of-mind satellite service, and 38% of those consumers actually purchased an XM system.
8/19
8/12
8/05
7/29
7/227/157/08
26%25%29%31%30%22%19%
Very Likely Somewhat likely Not likely
Total Non-Subs
8%10%82%
Cost of Service
43%
Value: Only Want Stern - Don't Want Music Channels
24%
Was Waiting for Possible Internet Stream
16%
Haven't had time
9%
Intend to Subscribe to Internet Stream
8%
Week
Programming Variety - XM
Programming
Variety - Sirius No Commercials - XM
No Commercials - Sirius
Sports Package - XM
Sports Package - Sirius
Personalities - XM
Personalities - Sirius
6/05/06
3036152012151020
6 /12/06
3235132013221222
6/19/06
3535151812201520
6/26/06
3734131515201322
7/03/06
3536101314121020
7/10/06
3338111613151221
7/17/06
3540152112181322
7/24/06
2939172515201520
7/31/06
3037152217181119
8/07/06
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8/14/06
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8/21/06
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FCC combing air tapes for dirty words
July 12, 2006
By Brooks Boliek
CBS Radio Layoffs Point To Sluggish Sales Market
July 12, 2006
By Katy Bachman
Sirius' Karmazin - would like to buy XM Satellite
June 26, 2006
What's your favorite Howard Stern moment from the terrestrial radio days?
Vote for your favorite Howard moments from the terrestrial radio days now at howardstern.com!
Howard Stern finds "rebirth" on satellite radio
By Steve Gorman
June 9, 2006
Study: Sirius Pulls Even With XM; Stern Is The Reason
June 1, 2006
By Ken Tucker
SIRIUS SHIFTS GEARS
by Peter Lauria
More Stern for Sirius
By Brian Gorman
May 30, 2006
Fool contributor Brian Gorman is a freelance writer in Chicago. He does not own shares of any companies mentioned in this article.
$TERN BIG WINNER IN CBS DEAL
By Page 6/Richard Johnson
Stand-alone CBS off to a 'terrific start'
May 26, 2006
CBS vs. Howard Stern Lawsuit Settled, Terms Kept Confidential
May 26, 2006
CBS, Howard Stern reach settlement on lawsuit
May 26, 2006 1:41 PM ET
Stern Says No to Terrestrial Radio
By Larry McShane
May 10, 2006STERN EYES FREE RADIO
By JOHN MAINELLI
Winter Arbitron: Spanish Sweeps, Post-Stern Struggles
April 26, 2006
By Katy Bachman, Mediaweek
SOURCE: Mediaweek
O say, FCC: Stern wins a First Amendment award
By David Hinckley
Daily News staff writer
David Lee Roth's radio show struggling
Observer: 'He's a dead man talking'
April 13, 2006
NEW YORK (AP) -- For David Lee Roth, morning drive time is turning into a car wreck.
Howard no coward
Shock jock Stern helps police nab deranged fan
BY TONY SCLAFANI
DAILY NEWS POLICE BUREAU
Hangin' With Howard
Interview: Forget the bitter lawsuit and the FCC -- Stern's got a new empire to conquer
March 28, 2006
Posted by BenDee at 05:42 pm.Update: Analysis of the formal CBS/Stern complaint
We posted an in-depth analysis from the info we had last week. Now The Smoking Gun has filed the full 43 page complaint on their website here. We promised a full examination of the document, and here are our findings. First, a summary of the complaint:
Roth airs wrath after bosses' Stern lecture
March 9, 2006
Daily News Staff Writer
25 Greatest Moments from The Howard Stern Show
By Darren Kane
March 4, 2006
www.animaux.net/stern/eshows.html (for a detailed list of every E! show)
www.tvmegasite.net:8080/prime/shows/howard/sternepi.shtml (for a detailed list of every Channel 9 show)
CBS Can't Be Sirius
By Rick Aristotle Munarriz (TMFBreakerRick)
Stern Words From CBS
By Sandy Brown
TheStreet.com Staff Reporter
February 27, 2006R&R News Analysis: Stern-Free CBS Stations See Steep Listener Losses
The first batch of winter 2006 Phase One Arbitrends was released Monday by Arbitron, and, based on the results, CBS Radio's WFNY (92.3 Free FM)/New York and KLSX (97.1 Free FM)/Los Angeles have a difficult challenge ahead in attracting morning drive listeners to slots once dominated by Howard Stern.
ROTH'S FREE FALLING
By JOHN MAINELLI
Johnny B. lifts Loop; 'Rover' tanks at WCKG
February 28, 2006
Stations Take Ratings Hit Post-Stern.
February 28, 2006
Has Stern Lost His Touch?
By Rick Aristotle Munarriz (TMFBreakerRick)
February 13, 2006
Sirius Shock: Pirates Hit Howard Stern Show
By Dawn C. Chmielewski, Times Staff Writer
February 2, 2006
SIRIUS Canada Adds Howard Stern to Satellite Radio Line Up
Canada's leading satellite radio provider to add The Howard Stern Show on Howard 100 as of February 6th
TORONTO, Feb. 1 /CNW/ - SIRIUS Canada today announced that the "King of All Media," Howard Stern, will be included as part of the company's 100 channel premium line up. As of February 6, 2006, SIRIUS Canada subscribers will be able to hear Stern on the widely publicized Howard 100 channel. Stern who debuted on SIRIUS Satellite Radio in the U.S. on January 9, 2006, is North America's most recognized radio personality, and had the top rated morning drive show in the U.S.
Checking In With...Howard Stern
January 30, 2006
Howard's End
Stern's show puts the "um" in "tedium"
January 27, 2006
CURSES FOILED AGAIN FOR STERN
By Don Kaplan
From Stern sidekick to Greenwich Little League dad
By Neil Vigdor
Staff Writer
"Don't Bet On Howard"
By ANDREW BARY
If you got a nose job, Howard, you should get your money back!
By MICHELE INGRASSIA
DAILY NEWS STAFF WRITER
Stern's pirated, naughty bits air
Brooklyn, N.J. get show free
January 13, 2006
Daily News Staff Writer
Critic's NotebookEarnestly Pursuing the Gentle Art of Nastiness Behind a Radio Microphone
By VIRGINIA HEFFERNAN
Boldly going where no $%*!# has gone before
Stern proves he's worth every dime on first day on satellite radio
By Helen A.S. Popkin
MSNBC contributor
January 9, 2006
The Revelations!
See if you can guess who did what. These were revealed on the first Sirius show (January 9, 2006).
Who did what will be revealed on the January 16, 2006 show.
the answer as revealed on the show I cheated on my wife and she caught me Fred I once hid in a bathroom closet and pleasured myself as my family members went to the bathroom Benjy In the last year I got a girl pregnant and had to pay for her abortion Artie I think I'm addicted to porn, I jerk off twice a day and prefer to masturbate, rather than having real sex Jason I have spent well over $10,000 on internet porn Gary My buddy and I once ordered massage girls but they ripped us off and left us staring at each other in our underwear Scott the Engineer I have pleasured myself with meat and vegetables Richard I have a half sister I have never met and don't want to Robin I've had cosmetic surgery Howard A guy once blew his load on my chest Sal I once had my stomach pumped for alcohol poisoning and when I woke up, an acquaintance of the same sex was fondling me JD