Howard Stern, the self-titled “King of All Media” is on his way to satellite radio. The shock jock has signed a new five year deal with Sirius Satellite Radio which will keep him off terrestrial radio until 2012. The move was predicted by some industry insiders who said last week that the ten year old company would be willing to pay Stern an astronomical sum to lure him away from terrestrial radio.
In 2006 Stern was reportedly paid $100 million by Clear Channel Communications, which is now iHeart Media Inc., for his services. That amount does not include the millions of dollars that iHeart spent on promoting Stern’s show. According to Equity Analyst David Bain in a recent report, “Terrestrial radio broadcasters are willing to pay Howard Stern approximately $100 million per year to stay off the air.”
highest paid radio host
In this report Bain cites a statement from Clear Channel CEO Bob Pittman who said that, despite Stern’s popularity, it would be “a very reasonable business decision” for him to leave radio stations that broadcast his show. According to Bain, Pittman went on to say: “It’s not a good thing when your most expensive program is your cheapest program in terms of what you pay for it. And, certainly if he went to satellite, they might have paid him less than we did but I’m sure they would have made it up with volume.”
Who is the world’s highest paid radio host
Stern’s 5 year deal with Sirius is worth approximately $100 million per year. With over 20 million subscribers, Sirius is paying approximately $5 per subscriber for each year of the contract. Radio industry analyst Michael Harrison was first to predict that Stern would sign a long term deal with Sirius back in October. Harrison said that Stern was receiving offers from multiple parties and would be able to negotiate a longer deal as opposed to signing on for another one or two year contract.
How did this person get into radio hosting
Satellite radio is enjoying a growth spurt in the wake of Stern’s defection. Bain Capital recently invested $530 million into the company and plans to expand Sirius’ programming base to include more sports, entertainment news and talk shows.
According to Bain, “The deal is expected to be completed within the next few weeks. Sirius will pay approximately $530 million in cash and stock to acquire The Boneyard.”
What are some of the biggest shows
According to a statement from Stern’s agent Don Buchwald, “It’s been a long road getting here but we’ve finally arrived.” The deal with Sirius will make Stern one of the highest paid radio hosts in the world. Bain explains, “In terms of annual salaries for on-air talent, Howard Stern will join a small group of hosts, including Michael Savage ($8 million), Rush Limbaugh ($38 million) and Sean Hannity ($23 million).”
In fact, according to Bain’s research, “The highest-paid radio broadcaster in the world is Howard Stern, who earned $100 million in his final year at terrestrial radio and will earn an estimated $95 to $100 million from Sirius over the next five years.”
What are some of the controversies that this person is involved in?
Howard Stern has not been without his fair share of controversy over the years. Here are some of the biggest controversies that he has been embroiled in:
• November 2005- The Federal Communications Commission (FCC) fined Clear Channel Communications, Inc., parent company of Stern’s syndicator Infinity Broadcasting $495,000 for alleged indecency violations. This fine comes at the end of an 18 month investigation in which Infinity Broadcast was fined $755,000 for various incidents.
• February 2004- Stern is accused of flashing his penis during a live broadcast on his New York City based radio show. The incident occurred while he was being interviewed by guest Dominic Barbara.