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?"
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%