SatRadio

Stern Warnings Continue

Howard Stern continues to discuss the possibility of leaving for satellite radio on his daily show. Stern's web site now contains links to various news articles and also the text of H.R. 3717 (Broadcast Decency Enforcement Act of 2004) [alternate link].

It should be noted that the House version of the bill will allow the FCC to fine violators $500,000 per utterance of indecency, with no maximum fine amount. The Senate version of the bill will only raise fines to $275,000. More importantly, the Senate places a cap of $3 million in fines per 24-hour period for companies and a cap of $500,000 per 24-hour period for individuals.

The potential for big fines or Infinity having to change Stern's show could eventually force "The King of All Media" to go to satellite radio. According to Tom Watts, an analyst for SG Cowen Securities Corp, Stern offered to move to satellite radio a few years ago, but the companies turned him down because his $30 million asking price was too high. Watts went on to say that, "Given the fact that he's being shut out of traditional radio, the question is: Is he willing to drop his price?"

Howard Stern and Sirius?

Fox News' Roger Friedman reports that Howard Stern visited Sirius Satellite Radio's offices last week in NYC. Friedman believes that Sirius would get an immediate "jump-start of very calculable proportions" should Stern join their current programming mix.

The problem, according to Stern, is that he can't negotiate at this time because he's still under contract to Infinity Broadcasting for about 21 months. Unless of course Infinity fires Stern (unlikely) or Stern quits (remote possibility). Infinity would rather make like difficult for Stern rather than fire him, take the hit on the remainder of his contracts, and more importantly loose millions of listeners and advertising dollars.

Reuters is also reporting that new FCC fines and guidelines could push "shock jocks" like Howard Stern to the freer air of satellite radio, but according to the report, such a move would likely mean smaller audiences and thinner paychecks. According to independent media analyst Jack Myers, "Howard Stern could drive an industry and change the economics of satellite in the same way that HBO changed television." Myers added that, "People will pay $10 a month for Stern, but they won't pay for Imus or Limbaugh."

Well known media insider and prolific weblogger Jeff Jarvis continues to devote daily coverage to the Howard Stern story. Jarvis notes that Clear Channel is sending very mixed messages following their decision to pull Stern from several stations on February 25th.

Howard Stern and Satellite Radio

In a follow-up to my original "Howard Stern moving to Satellite Radio?" posting there is a lot more buzz going around in recent days. This morning on his radio show, Howard Stern said that he has spoken with both XM and Sirius Satellite Radio about moving his show.

"It would be pointless to put it on the web because his audience includes people who drive to work and listen. That's why [Stern] wants to go to satellite and crush the industry that created him. [Stern] figures that in 20 years the radio stations out there will be worth zero if he moves there and spends 5 years on there." [via MarksFriggin.com]

"Howard said it hit him last night that there's no point to continue doing the show like that. It's time to go to a new medium that's got more freedom. Howard believes that it's time to build that industry of satellite radio. He wants the freedom to tell people what's on his mind." - [via MarksFriggin.com]

Stern also said that Merrill Lynch has issued a report on what will happen to satellite and broadcast radio when and if he makes the move. [via Jeff Jarvis] This would be a major move and a big coup for the company that can sign him to a deal. Stay tuned...

Howard Stern moving to Satellite Radio?

Clear Channel's decision to pull The Howard Stern Show from six of its radio stations has once again brought to the surface rumors about Stern's next career move. Stern's current radio contract is up in less than 2 years and given the cantankerous relationship he has had with Viacom President and COO Mel Karmazin, the "King of All Media" might go elsewhere.

Stern has made subtle comments for years that he would like to move the show to satellite radio where the FCC can't touch him. Yesterday's comments made by FCC Commissioner Kevin Martin at the Reuters Technology, Media and Telecommunications Summit suggest that the FCC might be waiting for him. The possibility of fired radio shock jocks Opie and Anthony reappearing on Sirius Satellite Radio already has Martin nervous.

Following Clear Channel's decision, Stern made a comment during his radio show that traditional radio broadcasting would be obsolete in 20 years and that satellite radio would take over. According to several emails that I have received on the subject, Howard Stern's agent Don Buchwald has approached some "other" radio outlets should Stern be fired or released from his contract. Could XM or Sirius be one of those "other" radio outlets? Stay tuned...