Sirius Stern

I am sure most of you have heard the news that Howard Stern will begin broadcasting his show via Sirius Satellite waves in 2006. As a current subscriber of XM, I am definitely wondering why my satellite radio provider did not grab Stern. I guess XM did not want to spend 100 million dollars a year for five years.

Sirius said it will spend $100 million a year during the course of the five-year deal: $80 million for salaries for Stern and his staff and the rest in stock-based compensation. ( from NY Post )

Man, $80 million a year for Stern and his staff plus $20 million in stock compensation is one hefty deal. Stern does have 12 million listeners right now. Sirius projects that 1 million new subscribers (because of Stern) will cover the cost of the deal. Of those 12 million Stern listeners, how many will invest in initial satellite equipment and monthly subscription fees? If Sirius said that they only need 1 million of those 12 million current listeners, I think they do have a very good shot.

So XM... What is going on with you guys? XM lost NFL to Sirius and now Stern? Well, I hope XM is planning to put my subscription money to some "Sirius" use.

Sirius Stern Press Release