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Originally Posted by Ustwo
While I think the censorship issue behind it is minor, this isn’t exactly 1984, its a nice move for all the free advertising it gives satellite radio.
I don't think Stern will be worth whatever giant contract they give him though. Stern might have the #2 audience in the country, but I don't think many of them are willing to pay monthly for him.
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According to one site, the "giant contract" will be
$100 million over 5 years. That's pretty giant.
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Scott Greenstein, president of Sirius, told Fox News's Neil Cavuto Wednesday that he expects Stern will bring with him 1 million of his most fanatic listeners. Greenstein estimates that today Stern has 11 million fans across the nation. Greenstein says with 1 million new subscribers, Sirius will more than break even on the Stern deal.
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My first reaction to hearing the news was that this will decide the format war, and Sirius has beaten XM. Then I heard the cost of the programming, as well as the current stats:
XM reported earlier this month that it had 2.5 million subscribers, about 2 million short of the level analysts have estimated the company needs to turn a profit. Sirius last month reported 600,000 subscribers, compared with the estimated 3.4 million the company needs in order to move into the black.
I really don't know how this is going to play out.