Market Currents
The buzz behind the satellite radio airwaves is that Sirius XM Radio (SIRI +1.6%) star...
-
Wednesday, October 24, 2012, 1:33 PM ETThe buzz behind the satellite radio airwaves is that Sirius XM Radio (SIRI +1.6%) star personality Howard Stern could leave the company with longtime supporter Mel Karmazin easing out of the CEO's office. Will Pandora (P -5.5%) try to shake up its lineup by making a play for the "King of All Media?"
Other date
Latest Consumer Articles
This news story has 26 comments:
Regardless, it's not going to happen.
Personally I think the assumption that Sirius needs Stern *at the present time* (versus in the past) is false. Sirius has a much higher install rate in cars now. Over the last four or so years, whenever I've talked to people who decided to subscribe to the Sirius radio installed in their car, I've made it a point to ask them why, and NOT ONE person has ever mentioned Howard Stern. It's usually the music, closely followed by sports.
Like him or not, he is responsible for a TON of subscribers who only listen to him and a couple other stations that they could do without when he leaves in a couple years
If he brakes the contract the penalties are severe.
Then again , Sirius today is well diversified entertainment platform
therefore Stern may not be as relevant as he once was .It sounds as if the shorts are getting nervous .
Loyalty, shmoyalty! Mel did a great job, enriching himself mightily in the process, but anyone who thinks he is inexpendable lacks a fundamental misunderstanding of business, especially the media business.
Stern costs the company what it costs to replace and put in orbit
one satellite.
If you don't like Stern, that's OK. But at least be realistic about his importance to Sirius and the value of the company
Also lets not forget the other content; while I get that many people still subscribe for Howard they are outnumbered by the people subscribing for the NFL, Uncensored music, original content, on demand shows. As someone who has subscribed because of Howard, I can tell you the show is not half as good as the show from 2006 and would not be a reason for me to cancel my subs.
Also just about all cars come with Sirius now; this was not the case in 2006/07. My grandmother has Sirius radio now that came in her new car which she has continued to renew.
The point is Sirius in the near term will need a catalyst to get a subscriber in which was Howard in 2006, cars in 2010 and their online and on demand in 2012. The point is they will stay for the other content long after their original catalyst is gone.