Sirius XM CEO Mel Karmazin still confident Howard Stern will sign new deal

Sirius XM Chief Executive Mel Karmazin said he remains optimistic about signing a new deal to keep Howard Stern on the satellite radio service, but warned that should the shock jock bolt, some subscribers might leave with him.

Speaking at the Bank of America/Merrill Lynch Media, Communications & Entertainment Conference, Karmazin praised Stern, with whom he's worked closely for decades.

"He's been a fabulous partner ... he has enabled companies to make a lot of money," Karmazin said. Stern's current contract expires at the end of the year, and he has, as he always does when one of his deals is nearing expiration, been dropping hints on his show that it may be time to walk away. Karmazin said he doesn't want to negotiate in public with Stern, but he noted that Sirius XM has successfully renewed several high-profile contracts recently, including those with Oprah Winfrey and Martha Stewart, and that he is "very confident" about getting Stern to stick around.

Stern sent shock waves through the radio industry in 2005 when left CBS Radio for Sirius. Karmazin, who has worked with Stern dating back to the 1980s at Infinity Radio and later at CBS, came to the satellite radio company soon after Stern made the leap. 

One of the reasons Stern left over-the-air radio for the satellite service, besides a huge pay day, was freedom from Federal Communications Commission regulations. Stern's radio show was often a target of the regulatory agency, which fined radio stations millions of dollars in connection with Stern's racy program. Stern has indicated that he does not have a desire to return to terrestrial radio. He could conceivably try to go solo and launch his own digital platform.

As for Sirius XM, which has almost 20 million subscribers, Karmazin downplayed the idea that there would be an exodus of subscribers should Stern leave.

"They may have come for Howard, they may love Howard ... but they listen to other channels," he said.

As for what Stern is looking for in a new deal, Karmazin would not divulge details, saying only that Stern is "compensated very fairly." When Stern joined Sirius in 2005, his contract was valued at $500 million, but that also included the costs of producing the show.

-- Joe Flint

Photo: Howard Stern. Credit: Evan Agostini / Associated Press

Comments

[Mike]

baba booey to you'all

[c.e. guintard]

HOO HOO needs to retire he is a old has been,,Opie and Anthony have a way better radio program,

[Richard]

Hello, welcome to swap shop.

[john tinfaniu]

Stern maintains an entertaining show. Not as insane as before, but entertaining as hell.
I agree, Opie and anthony were pretty good their first couple of years...now they just plain suck.

[rob t.]

You missed the big news about Sirius/M Satellite 2.0 radio launch being pushed back to 2014. Lots of satellite radio listeners interested in that. Were you even at the conference?

[Randy F.]

sounds like Mel is negotiating in public.

No exec would want to take the heat that will come if Stern leaves Sirius and Sirius loses 5 million subscribers.

Based on Stern's recent comments, he is ready to move on to a Sim card or internet model where the consumer pays $6 to %8 per month for new shows, archival shows and Howard TV.

I'm a big fan and will follow him any where he goes.
There are at least 5 million like me.

My professional life is a nine, but.....

[alan]

I believe Stern will have a small impact. The other shows like doctor radio, music and cosmo are way more entertaining not to mention the increasing penetration into new cars

[Dave lambert]

Get that poison out of your system.

[Bill]

Karmazin ... "warned that should the shock jock bolt, some subscribers might leave with him."

Karmazin should be honest with investors. There will absolutely be a mass exodus if Stern leaves Sirius.

Stern listeners are passionate about the program and I am willing to bet the overwhelming majority of Stern listeners will drop the service. I got the service for only one reason: Stern. I know I am not alone.

I have already checked-into the cancellation process in preparation for Stern's departure.

Mel, I would give Howard whatever he wants. You are being negligent with respect to the investors by underestimating the impact of a Stern departure.

[KB]

Honestly, I am just astounded that ANYONE really gives a sh*t what Stern does....

[Bob]

I see OJ and he look scared.

[Stephanie]

I go where Stern goes. PERIOD
People who say he isn't entertaining AREN'T listening to him. He is a phenomenal talent and I HAVE to know his spin on things. He is unique and his program is like no other. Howard makes it possible to face a rough day--he is something special. If Mel doesn't sign him then Stern and his followers will be elsewhere. Sirius/XM can't hold me any other way.

[Hamil]

I agree with some of the others that there will be a mass exodus if Stern were to leave and the company would be lucky to survive for a year. As for the show itself he really seems to be mailing it in lately. This last week of show's was the worst in recent memory. Thursday he had half the show (plus the whole wrap-up show) yelling at Benji for being late. Numerous times during the rant he apologizes for boring the audience, then I get in the car for work this morning and it's on Best of the Week! Just terrible!

[Eric the Actor]

Ack ack!

[Kevin]

Visited to the stadium the other night. Dropped $80. And while a trip to the stadium IS an excellent opportunity to buy hot dogs, tee shirts and pennants, I doubt I'd pay the $80 if there was no game being played.

All respect to Sirius, Howard really is the game. Some of the other programming is okay but I would not pay for it.

[stoych in beer town]

GET A CLUE!!! Opie and the idiot couldn't hold howard's jock in a million years. HEY MEL take it as good advice KEEP HOWARD or LOSE MY MONEY. Not a threat a promise.
NO Howard? NO Money

[blake]

when Howard leaves, I leave....

I think Mel is in for a shock when Howard goes.....

[chchchchia]

Who needs Sirius? I've had the service since mid 04 and only got it for Howard. My car radio broke after two years and Ive been listening on my phone and computer since. Smart phones are the future, plugs right into your car jack......who needs all that extra equipment, especially when it works like crap! Where Howard and the crew goes I go..........gotta go, I'm in the mood for a REEESIES and an ARTIECHOKE!

[arties hep c]

Riley Martin is very entertaining. I subscribe for Riley only! Uhhhhhh........

[Ivan]

@c.e. guintard - Opie and Anthony are a couple of tiny pimples in Howard's butt. Simply put, they are completely irrelevant and have a fraction of Howard's fan base. They were a failure on satellite, making no impact, while Howard brought millions of paying subscribers to the medium. And of course, Howard's an original while O&A are imitators of his show. Epic fail by you.

[Kim]

BS about us loving Howard and listening to other channels. Sirius will fall apart if Stern leaves.

[Hot Rod]

HOWARD WHO ????? The inventor of EVERYTHING RADIO ....... Good By to bad trash ........... EX FAN .........THIS IDIOT CAME TO X M FOR FREE AND I WOULD NOT LISTEN .... Just listen to the poor dim Girl he married ..... He has turned into a vast JOKE on HIMSELF ......... GO AWAY

[Sirius P]

I bought Sirius for Howard. If he leaves I'm gone.

[Governale]

"They may have come for Howard, they may love Howard ... but they listen to other channels"
I let my subscription lapse last month, and won't renew until I hear Stern's decision...

[Underdog Lady]

What are you'uns asking me for?