Word: sterne
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Dates: during 2000-2009
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...sense, the Stern math is fairly simple. Assuming he brings in 2 million listeners, who pay $13 a month, he more than pays for his $100 million a year in operating expenses, which also goes toward production costs for his show and two 24-hour channels he plans to program. Throw in ad revenues and he?s raking in profits for his corporate parent. Indeed, Sirius boss Mel Karmazin aims to generate $100 million in ad revenues by 2007, up from less than $10 million now. Stern is essential to that equation. Karmazin, after all, has long had faith...
...Wall Street isn?t entirely convinced by Karmazin?s math. No one can say how many listeners Sirius would bring in without Stern, or precisely how many listeners he's responsible for attracting. XM, after all, expects to add nearly 1 million subscribers in the fourth quarter without a blowout personality in its lineup. Which leaves Wall Street flummoxed as to Stern's true value. ?Howard will be big but [his] actual impact remains unknown,? Bank of America analyst Jonathan Jacoby wrote in a recent research note...
...What concerns Wall Street is that Stern?s act is showing its age. In his home market of New York City, his ratings are down about 26% from the fall of 1999, according to Arbitron, and his ratings declined over this summer in just about every major market. Part of the slide may be a result of Stern?s relentless self-promotion, pitching his move to Sirius so often that he at times sounded liked a satellite radio infomercial. In recent interviews, he also admitted to being in a professional slump...
...aims to broadcast a woman having late-night phone sex with a listener on one of his channels, and he?s talking about airing a parody of the ABC show The View, called Crack ?Ho View and featuring drug addicts discussing politics. The risk with getting more outrageous: that Stern turns off more listeners than he lures. As he closes in on his mid-50s, moreover, no one knows if the young guys who form his core audience will stay loyal, especially since there are so many other ways to get a fix of bathroom humor-on the Internet...
...anything?s certain it?s that Stern won?t have the FCC to kick around anymore (and vice versa). Of course, while the FCC may have cost Stern?s broadcasters buckets of cash, the content police created a brilliant comedic foil, allowing Stern to portray himself as an anti-establishment crusader, fighting uptight Washington bureaucrats with his renegade style. Will Howard Unbound be as funny as the guy who could always pull some boundary-skirting stunt to keep his audience amused? Stay tuned for The King of All Media?s answer...