Howard Stern Sticks with Sirius Despite Media

By Brandon Matthews

Traditional forms of media including television, radio and print are threatened by the success of Sirius XM Radio (SIRI). There is absolutely no doubt in my mind that the organizations behind traditional forms of media have united on a single front to denigrate the Satellite Radio provider at any and all costs. I know this first hand as most of the negative comments left on Satwaves.com can be traced back to everything from terrestrial radio station operators to the National Association of Broadcasters. These traditional media conglomerates control everything most people see and hear. Consider if you will the number 1 hit by the Black Eyed Peas in which the words “Satellite Radio” have been bleeped out by terrestrial radio stations from coast to coast.

In the years since Howard Stern first joined Sirius, traditional media has made a point of downplaying Howard Stern's relevance. Just last October, the Los Angeles Times published this article which made the claim that Howard Stern was no longer relevant, and that his listeners had dwindled to a fraction of the number that once tuned in. The Los Angeles Times happens to be owned by Tribune; “America’s largest employee-owned media company, operating businesses in publishing, interactive and broadcasting.” The same article was syndicated and republished on an almost daily basis for several weeks that followed, assuring that the story would be told in every major U.S. market and maintain a top ranked listing in google news search results.

That is why I could not help but laugh hysterically at the newest media attempts to control the American public’s view of Sirius XM Radio through new articles that claim Howard Stern will leave Sirius XM nearly two years from now. These articles now make the claim that Howard Stern is so important and popular, that Sirius XM’s survival hinges on whether or not Howard decides to stay with Sirius XM when his contract comes up for renewal in 2011! Unfortunately, some people seem to be buying into this manipulation and fear-mongering. The reach of these media outlets is unlimited in scope.

As an example, on the eve of Sirius XM’s announcement that its iPhone application had reached a million downloads, a story was written suggesting that Sirius XM stock would be a good short sale candidate by a known writer who has denigrated Sirius for years. I recall writing that it seemed like a signal was being sent on the Satwaves forums the moment I read it. As trading progressed the following day it looked as if Sirius XM stock would rise precipitously on the iPhone application news. CNBC even picked up the story, but if you follow Sirius XM you knew what was coming next.

It was then reported that the app, despite having over a million downloads, had a low rating based on the absence of The Howard Stern Show. The very same show that the media has been proclaiming to be irrelevant. The stock ended the day's session flat as a result. Out of nearly 19 million subscribers and out of 1 million iPhone app downloads, the app was given a low rating by a mere 38,000 people. It does not take a rocket scientist to figure out that anyone can bash the application, whether or not they even own an Apple device. I rated the application 5 stars, and I have no iPod nor iPhone. I simply signed up using my AOL account. It can hardly be deemed a reliable source of consumer sentiment compared to the fact that it remains the number 1 downloaded music application.

As for Howard Stern, terrestrial radio is already on life support. Clear Channel is knocking on bankruptcy’s door. When it comes to radio companies, there is only one that is growing. There is only one that can offer Howard the freedom to do his show and produce new shows without fear of retribution from the FCC. By the year 2011, it is probable that no radio company in existence would be able to afford Howard Stern while offering him a minuscule percentage of his current national audience. Only one radio company can offer The Howard Stern Show a potential global audience in the years to come. That radio company is Sirius XM Radio.

As for the media manipulation: People should make a stand. If you’d like to be told what to read and hear only that which is selected for you, you might want to consider a move to North Korea. Turn off your am/fm radios. Pick up a Satellite Radio and subscription. Send a message to traditional media that they cannot control what you see and what you hear. I have and in this lies true freedom.

Position: Long SIRI

Comments

[GeorgeS:]

What's the theory on who was behind the attempt to destroy SIRI thru the stock manipulation?

Jul 07 06:25 AM

[R A F:]

Any knowlegeable observer of recent trading in SIRI realizes this company has been the target of a coordinated and coercive effort by certain elements within the media to keep pressure on this stock. Given the massive short position that exists, and the daily controlled ranges that persist, it is obvious that manipulation has occurred (and continues to occur) by a group of powerful interests wanting to keep pressure on the stock. However - to their increasing concern and nervousness - the stock has now turned stronger and the technical framework that dominates is now positive for the intermediate and longer term. The bottoming formation of the last six months projects potential toward $1.00+ over the next six months to one year - and considerably higher over the next several years. Fundamentals have also shifted to a positive framework (ageing auto fleet projected to be replaced in coming years, iPhone impact, etc.) and - in addition - the S.E.C. appears likely to take steps to curtail abusive short selling tactics over the next few weeks/months. All of this is positive for SIRI and the stock should continue to meet firm underlying support on any near term pullbacks. Upside probes should continue in the wake of this demonstrated support and once .50 is broken on the upside it will be "off to the races" (in continued measured and orderly trading) through yearend. Stay the course. Most negative analyses are now looking back instead of forward and markets are likely to increasingly reflect this realization by discounting negatives that are based on past conditions while responding more positively to expectations of improving future potential.

Jul 07 06:49 AM

[siriusaldo:]

this is a clear example by media manipulation no coverage !!!!


Photo Release -- Space Systems/Loral-Built Satellite for SIRIUS XM Radio Successfully Begins Post-Launch Maneuvers
GlobeNewswire
Posted: 2009-07-01 08:00:00
PALO ALTO, Calif., July 1, 2009 (GLOBE NEWSWIRE) -- Space Systems/Loral (SS/L), a subsidiary of Loral Space & Communications (Nasdaq:LORL) and the leading provider of commercial satellites, today announced that SIRIUS FM-5, a satellite that it provided to SIRIUS XM Radio, America's satellite radio company, is performing post-launch maneuvers according to plan. The satellite's solar arrays deployed on schedule early this morning, following yesterday's successful launch from the Baikonur Space Center in Kazakhstan aboard a Proton Breeze M launch vehicle provided by International Launch Services (ILS). The satellite is scheduled to begin firing its main thruster tomorrow in order to start maneuvering into geosynchronous orbit.

long live sirius xm

Jul 07 07:23 AM

[Neal Barkett:]

Brandon, Your article makes a lot of common sense. Good Job!

Jul 07 08:01 AM

[ScroogeMcduck:]

Maybe you could answer this for me Brandon? The launch of a new satelite is clearly a move to expand there coverage. How much of the globe does Siriusxm's current signal cover? And with this additional satelite how and what region will it cover?

Jul 07 08:28 AM

[ScroogeMcduck:]

And with this additional satelite how MUCH and what region will it cover?

Jul 07 08:30 AM

[underway:]

good article. well said.

Jul 07 09:47 AM

[jswede:]

"There is absolutely no doubt in my mind that the organizations behind traditional forms of media have united on a single front to denigrate the Satellite Radio provider at any and all costs."
>>> you are delusional -- satellite radio, like terrestrial radio, will go away without any help from a 'coordinated effort' - lol.

"These articles now make the claim that Howard Stern is so important and popular, that Sirius XM’s survival hinges on whether or not Howard decides to stay with Sirius XM when his contract comes up for renewal in 2011! "
>>> See if you can grasp the dichotomy: Stern is VERY important to the CURRENT Sirius sunscriber base. He is not at all important to subscriber growth -- those who like Howard are already there. If he goes, they go too.

"on the eve of Sirius XM’s announcement that its iPhone application had reached a million downloads, a story was written suggesting that Sirius XM stock would be a good short sale candidate by a known writer who has denigrated Sirius for years."
>>> a million downloads on a FREE application is nothing all too special -- less so considering all the cash Sirius spent to let people know about its existence. without a significant number converting to paying subscribers, this means very very little.

"out of 1 million iPhone app downloads, the app was given a low rating by a mere 38,000 people."
>>> considering that on average only 1 of 100 people actually write a review, 38,000 reviews is MASSIVE. 3.8x more than average... and all of these were negative, you say?

"terrestrial radio is already on life support. Clear Channel is knocking on bankruptcy’s door."
>>> Clear Channel is in horrible shape due to a shift in consumer taste and its industry, but it's incredible leverage that has it on life support. Much like Sirius.

Jul 07 10:12 AM

[Scooterpod:]

backseat drivers, Monday morning quarterbacks all making dire predictions. Even with the current frustrations, any forward-thinking person should recognize the potential that Sirius represents. I'm long, and will enjoy what I get when it comes.

Jul 07 10:32 AM

[Jerrold Wil...:]

People have to realize that all the poor reviewers of the sirius xm app are all Howard Stern fans. If Opie and Anthony had been left off, then thousands of their fans would say the app was horrible. Out of 1,000,000 downloads, if 38,000 or so Howard Stern fans are upset; that's not too bad. I can understand that, I would be too if they left off my favorite station. With any service people will complain before they say how good something is. Therefore mostly angry Howard Stern fans will rate the app 1 star. Those that are happy with it will just download it and move on and listen to their favorite chanels as usual. In fact angry Howard Stern fans may comment several times to try to pressure sirius xm to get Howard on the iphone. Read the comments about the app, everyone that hates it say that because the lack of Stern. Reading the comments you would think that 98% of sirius xm subscribers get it because of Howard Stern! By the way, he is on another vacation...Howard has live shows about 1/2 the year! Didn't XM have about 8 millions subscribers with no Howard Stern? Howard is big, but some people like sirius xm's other chanels besides Howard Stern.

Jul 07 11:14 AM

[zorro6204:]

Apparently you're not up on current events, because Howard is already semi-retired. He takes off every Friday anyway, he bolted for nearly two weeks in July and he is taking all of August off. You stack up that amount of money (and you get old), the passion for doing one more shock jock show begins to fade fast. No way he renews, not the least chance.

Jul 07 01:27 PM

[R A F:]

Note: Just observed a very prominent billboard on the Major Deegan Expressway, on the approach to Yankee Stadium:

Sirius XM Satellite Radio
Now available on your iPhone and iPod touch

The billboard was eye catching and described the free App download and 120 channels of content, etc. All very well done.

This should address the doubts that have recently been raised by the "bashers" as to whether or not Sirius is marketing the new application and expanded platforms.

Jul 07 03:18 PM

[Jerrold Wil...:]

It's very good to see that sirius xm is once again advertising via billboards, newspapers, etc. It appears that the company is moving away from their own portable products and trying to ride the iphone/ipod-touch momentum. Their ads seem to display iphone as much as sirius XM. Whatever it takes to promote the service is great. Interestingly, I wanted to purchase XMP3 from xm and they are all "out of stock" As an ivester I hope that they sold so fast that they cant keep supplies. However, I believe that the company is just moving away from making their own devices. They never made accessories such as antenna headphones or case for it. It will be interesting when they announce the percent of the million that actually became paying customers. That will be a "huge" day for the stock, one way or the other.

Jul 07 05:05 PM

[jmsithy:]

but is it true that Sirius / xm does not see one dime from the IPHONE APP?

Jul 08 07:05 AM

[jmsithy:]

well lets see can we take bets this will be back down to the losing .35 that it has always been? or .40

Jul 08 09:40 AM

[Jerrold Wil...:]

Well, the Iphone app is a free download so sirius/xm would not make money from the app. They will make moneyfrom the subscriptions that come from it. I'm not sure how much if any apple will get. I wuold hope apple would make money just from when people purchase songs they hear on sirius xm. It would be great to see an apple commercial promoting sirius/xm.. Maybe have Oprah, eminem or one of their big names let people know they can hear their chanels on the iphone/touch.


On Jul 08 07:05 AM jmsithy wrote:

> but is it true that Sirius / xm does not see one dime from the IPHONE
> APP?

Jul 08 01:10 PM

[flingtoday.com:]

flingtoday.com

Jul 08 02:41 PM

[jmsithy:]

well be prepaired by the end of the week going back to .35 because it is heading there now / I think it is funny that after 6 months this has not had a steady profit over .35

Jul 08 03:00 PM

[jmsithy:]

lol who is going to subscribe to this now since after the reports came out about Pandora and all that


On Jul 08 01:10 PM Jerrold Williams wrote:

> Well, the Iphone app is a free download so sirius/xm would not make
> money from the app. They will make moneyfrom the subscriptions that
> come from it. I'm not sure how much if any apple will get. I wuold
> hope apple would make money just from when people purchase songs
> they hear on sirius xm. It would be great to see an apple commercial
> promoting sirius/xm.. Maybe have Oprah, eminem or one of their big
> names let people know they can hear their chanels on the iphone/touch.
>

Jul 08 03:02 PM