Howard Stern is in the final year of his contract with satellite audio service SiriusXM, and just like last time the duo went through the new contract dance, there is no hint of a resolution one way or the other any time soon.
One big question, says Wall Street observer, is whether the satcaster even needs Stern any longer.
The situation on both sides is radically different than it was five and ten years back.
For Stern, he is earning very decent pay on television – although not nearly as much as he has been getting from SiriusXM. MF also notes the obvious – he is getting older and perhaps more interested in enjoying some down time.
And on the other hand, if he wants to stay in business, perhaps Stern would like to go his own way with a streaming app.
But the situation is different for SiriusXM as well. Ten years ago Sirious was a standalone in competition with XM, not to mention AM and FM radio, and it really needed Stern to establish credibility. It paid him $100M a year at that point. Five years ago, Stern’s annual salary went down to somewhere in the $80M range, but so too did his hours.
MF notes that nowadays Sirius and XM are one and the same and the service is well-established, without the need for a major splash created by a flashy talent signing.
However, that does not mean that having Stern aboard does not have serious value.
MF noted that Macquerie’s Amy Young believed that perhaps another five years at $70M with more time off would be a good deal for both sides.
Last time around, Stern waited until December to decide if he was going to stay on the satellite. If that is again the case, we can expect further speculation on Stern’s future as the year progresses.
