• Bloomberg Businessweek, Tuesday, September 14, 2010 11:26 PM

Sirius XM Radio may keep adding listeners, fueling a stock rally that has lifted the satellite radio provider by 74% this year, even if it lost famed shock jock Howard Stern. Stern, credited by Standard & Poor for attracting as many as 2 million subscribers when he moved to Sirius in January 2006, suggested last week that he may leave satellite radio when his contract expires.

While S&P says 200,000 to 300,000 fans may drop the service if he departs, customer growth overall will continue and Sirius can build sales with the money it saves on Stern. Sirius shares have gained 5.2% since Sept. 2, when Stern told listeners that he's "pretty sure" he'll exit satellite radio next year, according to Orbitcast. Sirius will probably add 1.1 million subscribers this year to the 18.8 million it had at the end of 2009. It may add a further 1.4 million in 2011.

Sirius is likely considering the weight of Stern's contract costs. His alone accounted for more than a fourth of the company's total annual programming and content costs last year. Add to that the knowledge that Stern no longer brings in listeners in Pied Piper-like fashion, as he did in 2006. While initially interested only in Stern, many fans have since discovered additional Sirius channels they enjoy. 

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