Howard Stern's Move to Satellite Radio is No Big Deal, Argues Prof. Jeff McCall '76

January 8, 2006, Greencastle, Ind. - "To observe the deluge of television and newspaper coverage in recent weeks, one would think that shock DJ Howard Stern's move to satellite radio is a big deal. It isn't," begins an op-ed by Jeffrey M. McCall, professor of communication at DePauw University, published in today's Indianapolis Star. "If subscription-based satellite radio ever takes a profitable place alongside free over-the-air radio, it will be because of factors much more important than Stern."

Dr. McCall, a 1976 graduate of DePauw, notes that "Stern has made a career with his anti-establishment persona... but his marketing blitz ahead of his Monday debut on Sirius satellite radio has been establishment all the way. His $500 million contract with Sirius over the next five years can do that to a guy... Stern's loyal listeners, meanwhile, will have to pay $12.95 per month, plus the cost of a receiver, to follow the talented but edgy Stern to his new Sirius home."

The unprofitable satellite radio network now boasts more than 3 million subscribers, roughly half of the total for its competitor, XM. "Even if all 3 million Sirius subscribers listen to Stern, he still reaches only about a fourth of the estimated audience he held with his free radio offering over traditional broadcast outlets," the professor points out. "Estimates are that Sirius added about a million subscribers in the last quarter, about the same as XM. Sirius will surely proclaim this increase is thanks to Stern, but surely NFL and NBA exclusives at Sirius have lured many of the adult males that Stern was supposed to attract. Stern himself would have to attract and keep about 650,000 subscribers just to pay for his own contract."

McCall continues, "Stern says his move to satellite radio is not just to avoid Federal Communications Commission indecency rules, which currently aren't applied to satellite programming. In a recent report, Stern said, 'It's about ideas. This is a free-speech issue.' Of course, hearing the speech won't be free anymore. And, absent a particular word or two, Stern's ideas, like interviewing crack-addicted hookers and having a drunk undergo live psychoanalysis, would have easily escaped FCC sanction over regular radio."

In conclusion, McCall asserts, "When announcing the eventual Stern move to Sirius more than a year ago, Sirius Chairman Joseph Clayton hailed it as 'the most exciting and transformational event in the history of radio.' If history is to be made with Stern, Sirius is going to need many more than 3 million potential listeners."

Read the complete essay by clicking here. Jeff McCall wrote a December 31 Indianapolis Star op-ed on the state of television news.  Learn more here.

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