Stern to Sirius could be a threat to leave empty words

Howard Stern is threatening to leave for Sirius XM Radio Inc. now that the Shock Jock, and the provider of satellite radio over the contract negotiations in 2010. This danger seems likely to be less intimidating than Sirius in the past. Sirius originally wanted so badly that he gave the most lucrative radio contract ever, a five-year agreement that began in 2006 and paid 500 million U.S. dollars in cash and shares. Today, he has not many places left to go - at least if he wants another big payday. community radios are facing sharp declines in advertising and the high indebtedness, and probably can not pay top dollar for the mean reversion star, when it began. It is also likely to return to Chafe enjoy the freedom of satellite radio, where his fast-paced banter was not subject to federal restrictions on language and content will be censored. It can not be another provider of satellite radio - Sirius, the only other XM swallowed the last year. So when Stern, 55, will not re-sign with Sirius, it's probably paid less attention. Sirius has almost looking for protection against bankruptcy and attempts this year to cut costs. The company feels the weight of weak auto sales, provide most of the new customers. And it faces new threats from new competitors, commercial-free, such as Internet radio. For these reasons - and because Stern has other times he would leave or retire - his last threat rings hollow, some analysts warned. "This is probably positioning for contract negotiations," said Brett Harriss, an analyst at Gabelli & Co., whose parent company, GAMCO Investors Inc. owns 1.1 million shares of Sirius. "I do not think he would be their megaphone." Director General of Sirius, Mel Karmazin, told the Associated Press in an interview that he would work hard to keep Stern, but not the company it would be possible with more detailed comments. Stern agent, Don Buchwald, did not respond to requests for comment. Stern has a name for the traditional or "terrestrial" radio made. While Sirius makes its money primarily by selling subscriptions, the money goes Stern classic radio syndication rights came. In this configuration, the pay radio companies to distribute the programs, like stars. Many of these radio stations since Stern left the airwaves free and fought recession has exacerbated the problems. In the first nine months of radio advertising revenue fell by 21 percent to 11.8 billion U.S. dollars, according to the Bureau of radio advertising. Citadel Broadcasting Corp., the nation's third-largest operator of radio stations, filed for bankruptcy protection Sunday. More important station owner struggling with debt and the syndication division of the largest station owner, Clear Channel Communications Inc., is already regarded as Rush Limbaugh paid $ 400 million on a contract for eight years. "Who else can make Howard Stern? Harriss. When Stern signed with Sirius, the company moved XM Satellite Radio Holdings Inc. in the race for customers. He desperately needs a marquee name of subscribers to its services, the 130 radio stations across the country in $ 6.99 per month offers up to $ 19.99 per month, depending on package after winning t. Now, after the purchase of XM $ 3.3 billion, Sirius has 18.5 million subscribers, down slightly from a peak of 19 million at the end of last year. Sirius Radio Programming "Beyond Stern include Oprah Winfrey, Martha Stewart, games of the NFL and Major League Baseball. Half of his music channels are free and advertising, while the rest seem to sports, talk, news, entertainment, traffic and weather. The company has never had a net profit. The turnover recorded was nearly flat last quarter, and Sirius is still pressure to reduce costs. Sirius had barely avoided bankruptcy protection 10 months ago by obtaining $ 530 million in financing from Liberty Media Corp. Sirius to 40 percent attempt by Liberty, controlled by the big satellite owned by John Malone to give. As Sirius, get their finances in order, there is still threats from new technologies such as radio services that offer Internet radio programs without advertising. The company tries to cut costs. Expenses Sirius programming have declined over the past four quarters, 18 percent of total sales of Sirius and XM paid a year earlier, when she still has two separate companies. Sirius radio programs eliminate overlap, because XM was added, and found ways to reduce the "cost of air talent." Given the climate, if the proceeds star Sirius, "he is not 500 million U.S. dollars more," said Miller Tabak analyst David Joyce. Robert Eatman, the talent agent Sirius and Opie & Anthony Rapper Nick Cannon agreed that Stern is "probably not worth" 500 million Sirius now. But the question will be how Sirius can save money and at the same star. Stern accounts for about 80 million U.S. dollars in annual costs for programming for Sirius, which $ 365 million in the last four quarters totaled up. The 80 million includes the treatment of the star, the salaries of their employees and production and operating costs, according to documents filed with the Securities and Exchange Commission. The rest of the contract was paid in stock. It there is no independent assessment available to the popularity of the show of Stern, title filed, which is broadcast Monday through Thursday 6-9, but it was so important to mention that Sirius was the only radio talents in the SEC's 2006 report, by 2009, as a party whose failure could adversely affect the business of Sirius. (automobile manufacturers were also among the institutions listed.) In his first year at Sirius Stern received a bonus of $ 82.9 million shares of the U.S. dollar, as many participants Sirius an agreed target of more than exceeded 2 million euros. Stern was able to leave to start a new adventure, perhaps a subscription service, the performance of PCs and mobile devices transmitting. Flow Stern Show Sirius already online and the iPhone. Or he has more options in cable television, exploring where his first pay-per-view special, "Howard Stern Negligee and Underpants Party," was offered in 1988. Stern was able to retire. "Howard's creativity and freedom of enterprise to do what he wants. Only write about his own ticket in a number of areas, "said Tom Taylor, chief executive of News Radio-Info.com, which tracks the radio industry." He does not need to do something. It will pay the fine in rent. "