Stern, A Serius Satellite Success

Filed in archive Companies on May 12, 2006

Research company Bridge Ratings said that the howard stern effect is dying down, resulting in an estimated addition of 1.1 million subscribers to the Sirius satellite radio service. Assuming each subscriber generates a net average of $100 in annual revenues, Stern increases Sirius revenues by $110 million. That's a rough wash on the balance line as Stern is being paid the same amount in his five year $500 million contract.

Breaking even on Stern represents a success for Sirius. Stern's addition brought great corporate value beyond the profit line. His fans alone now represent 8% of Sirus subscribers. Landing him re-established Sirius as a serious satellite radio vendor at a time when it was being significantly outpaced by XM.