Wednesday, October 06, 2004

Shocking News from Shock Jock

I AM shocked! Now I have to PAY $$$ to listen to Howard!

From USA Today-
Howard Stern to broadcast on Sirius Satellite Radio
NEW YORK — Radio shock jock Howard Stern, one of the most popular U.S. entertainment personalities, said Wednesday that he is leaving Infinity Broadcasting and will take his show to subscription-based Sirius Satellite Radio (SIRI) beginning in January 2006.
Sirius stocked jumped on the news.
The five-year, multimillion dollar deal with Sirius will allow his show to be heard in every market in the country, the company says. Stern's radio show corners the market among males 18-49 years of age and ranks No. 1 in many of the 46 major markets where his show is broadcast now.
But earlier this year, Clear Channel Communications, the nation's largest chain of radio stations, dropped Stern from its stations in six markets, including San Diego and Pittsburgh, after federal regulators complained about his raunchy humor.
Stern's show often features sexually explicit remarks and off-color humor. In June, Stern announced his show would go on the air in nine new markets owned by Infinity, including four where Clear Channel stations dropped it.
Like cable television, satellite radio does not have to comply with federal indecency standards because it is only available to paid subscribers.
By luring Stern, Sirius gives itself a boost in its rivalry with its larger competitor XM Satellite Radio Holdings (XMSR) but also gives a shot in the arm to satellite radio overall, a business that is built on attracting subscribers to dozens of radio channels that are broadcast digitally.
Sirius CEO Joseph Clayton called the signing "without a doubt, the most exciting and transformational event in the history of radio."
Opie and Anthony, another popular and controversial radio voice, premiered this week on rival XM.
Sirius said Wednesday that production costs for the Stern show, including payroll, construction of a studio and development of additional programming, would cost it about $100 million a year.
The company says it can cover those costs if Stern generates 1 million new subscribers.

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