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Member since May 2, 2006

  • Name

    Rich Ord

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  1. Comment - Stern Leads Sirius to Large Loss

    (May 2, 2006 - 11:02 PM)

    This is a business story, not a review of the entertainment value of Howard Stern.

    If Sirius hadn't signed Howard Stern they would be about 2 million subscribers lighter. At $12.95 a month that is $155.40 per year totaling over $310 million generated by Stern the first year alone. Profits will come over time similar to cable television. Stern has single-handedly made Sirius the hip service everone wants while leaving XM for the older crowd. Howard Stern has clearly changed the competive landscape making XM the satelite radio company most likely not to survive.

    The numbers tell the story ... Sirius is signing up retail subscribers at a 2-1 pace over XM. One bright spot is that XM still has the most exclusive auto relationships, but they will be expiring over the next few years. However, even with those deals XM is losing money because of heavy discounting.

    XM clearly needs its own Howard Stern.

    Rich Ord
    http://www.webpronews.com