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From the NewsMax.com Staff
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For the story behind the story...
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Thursday, Oct. 7, 2004 8:45 a.m. EDT
Sirius: Stern Will Bring 1 Million Fans to Us
Satellite radio provider Sirius says it will spend $100 million over five years to bring Howard Stern to the emerging media company.
Big bucks, but Sirius says Stern will pay for himself.
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Scott Greenstein, president of Sirius, told Fox News' Neil Cavuto Wednesday that he expects Stern will bring with him 1 million of his most fanatic listeners. Greenstein estimates that today Stern has 11 million fans across the nation.
Greenstein says that with 1 million new subscribers, Sirius will more than break even on the Stern deal.
But some financial experts say that Sirius' calculation is not realistic.
"I believe the [subscription] number to break even is at least several times higher" than 1 million, Legg Mason analyst Sean Butson told USA Today. "It comes down to: Did they pay too much? It's possible that they did."
No matter what the economics, some can't wait for Stern to leave radio.
FCC Chairman Michael Powell has already crossed swords with the shock jock, and yesterday Powell suggested that he was happy Stern was leaving radio for satellite.
Powell said: "Satellite radio is one of the many technologies that the commission is strongly promoting to expand the diversity of choices for the American public. It is not surprising that notable performers and journalists are turning to a medium that allows them to paint with a broader palette."
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