"This to me is a big thing," said Cathleen Campe, senior vice president-director of spot broadcast at Rubin Postaer and Associates. "This could change the landscape of satellite radio."
Stern said that starting in 2006 he will start a five-year contract with Sirius, estimated at $500 million dollars. In explaining his decision, Stern said he was "tired of the censorship."
Stern has been under fire this past year, and was dumped by Clear Channel Communications in April after the Federal Communications Commission proposed a $495,000 fine against it for comments made by Stern.
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On subscriber-based satellite radio, Stern will not fall under the regulatory oversight of the FCC and would be able to do whatever he likes, since the medium is not subject to federal indecency scrutiny. As good as the deal may be for Stern, the shock jock could be the kind of personality that could finally put satellite radio on the map with critical mass of subscribers.
Rubin Postaer's Campe said that because Stern will not be available anywhere else, his presence on Sirius will hasten its penetration. "I think there are Howard Stern fans who would subscribe to satellite radio just for him," she said.
Campe said it was too soon to say how many advertisers would follow Stern, given that the medium thus far has carried limited advertising: "In 2006, there may be a whole different picture to look at."
Sirius reaches more than 600,000 subscribers nationwide.