NY Times
October 6, 2004
Howard Stern to Make Leap to Satellite Radio in 2006
By CHRISTINE HAUSER
oward Stern, the self-described "King of All Media" whose radio talk show has drawn millions of dollars in fines for indecency, will shift his show to satellite radio starting in 2006 in a move that will make him largely free from regulatory scrutiny.
Mr. Stern announced the agreement today with the satellite radio provider SIRIUS, saying it would enable him to deliver "my show my way" to his fans when the deal begins January 1, 2006.
"It has been my dream to have the top-rated show in radio since I was five years old," said Mr. Stern. He promised his fans that his show on SIRIUS would be the "best radio they will ever hear."
The joint statement with SIRIUS described Mr. Stern the No. 1 national radio host among males 18-49 years of age and said that he ranks first in many of the 46 major markets where his show is broadcast, including New York and Los Angeles.
Joseph P. Clayton, the chief executive officer of SIRIUS, said in the statement, posted on the radio provider's Web site, said that Mr. Stern was capable of changing the face of satellite radio.
"Signing Howard Stern is, without a doubt, the most exciting and transformational event in the history of radio," Mr. Clayton said with some hyperbole.
The Howard Stern radio show has drawn millions of listeners and significant fines from federal broadcast regulators with its bawdy audio mix that prompted some stations to drop his show.
Mr. Stern found himself off the air in six markets earlier this year after Clear Channel Communications dropped him from stations it owns following complaints from federal regulators. The company agreed to pay a $1.75 million fine in June to the Federal Communications Commission to settle indecency complaints arising from Mr. Stern's show and others. The largest penalty previously secured by the commission against a broadcaster involved Infinity Broadcasting, which agreed in 1995 to pay $1.7 million to the commission to settle complaints against Mr. Stern.
More than half of the $4.5 million in fines the F.C.C. has imposed since 1990 has involved Mr. Stern.
Mr. Stern said in July that he was strongly considering a switch to satellite radio, saying he was in a "cultural war."
Scott Greenstein, the SIRIUS President of Entertainment and Sports who negotiated the five-year, multi-million dollar agreement, today called Mr. Stern an icon.
"There is absolutely no one like Howard Stern, and I'm excited that, for the first time, his show will be heard across the entire country as it was always meant to be heard," he said in the statement.
SIRIUS estimates that Mr. Stern would only need to generate approximately one million subscribers in order to cover the costs of the deal.
Production and operating costs for the Stern show, including compensation of the show cast and staff, overhead, construction costs for a dedicated studio, and a budget for the development of additional programming and marketing concepts, is estimated to be approximately $100 million per year, according to the statement.
Through SIRIUS's nationwide broadcast system, Mr. Stern will be available in every market across the country, the statement said.
SIRIUS said it is now available to more than 10 million DISH Network satellite TV and SIRIUS Satellite Radio subscribers, providing listeners with over 120 channels of commercial-free music, sports, information and entertainment broadcast daily from New York City, Los Angeles, Nashville, New Orleans, Houston and Daytona.