Quote:
Originally Posted by Profits of Doom
It looks like Sirius is doing the same thing to Stern that they did to Opie and Anthony. Since there really is no current competition to sign with Opie and Anthony got a low ball offer and after negotiating it up a little they were forced to sign. They looked into doing something with Pandora or last.fm but felt that either are a few years away from being viable competition.
Stern is pretty much in the same boat, albeit with a larger fan base. Terrestrial radio is so far in the shitter that no company could afford to pay him what he wants to bring him back, especially since terrestrial radio ad money is now virtually non-existent. Apple could be the perfect out for him...
|
He claims to have several offers form terrestrial radio companies and I think he would bring in huge dollars for them, but he says he doesn't want to do that again.I have a feeling Sirius might be undervaluing him. Supposedly he brought in 5-7 million subscribers. While some of them are bound to stay with Sirius because they like the other channels, I would not be shocked to hear that 3-5 million of them leave if Sterns leaves. At $12 a month that could be 36 to 60 million per month in revenue that they could lose. That would be a pretty big hit.
In the end I think the two need each other. It is the best place for Stern and Sirius needs him because he provides a large number of loyal paying subscribers so I think they will eventually come to some kind of a deal. But if he does walk and goes somewhere like Apple or does something on his own it could open up a large new market for that type of product.