NEW YORK (Reuters) - Howard Stern, one of the most popular U.S. radio personalities, on Wednesday said he will broadcast his show on Sirius Satellite Radio Inc. (Nasdaq:SIRI - news) beginning in 2006, after being dropped earlier this year from several stations that objected to his often off-color humor.
By luring Stern away from his current employer, Viacom Inc.'s (NYSE:VIAB - news) Infinity Broadcasting, the deal gives a shot in the arm to satellite radio overall, a new business built on attracting subscribers to dozens of radio stations broadcast digitally.
It also gives Sirius, whose shares rose about 17 percent in early trading, a boost in its rivalry with its larger competitor XM Satellite Radio Holdings Inc. (Nasdaq:XMSR - news).
Sirius currently has more than 600,000 subscribers, a small amount compared to Stern's current audience on broadcast radio, where he ranks No. 1 in 46 large markets across the country, including New York and Los Angeles.
But many analysts have said that a move to satellite radio gives Stern more freedom to broadcast his show.
Indecency on the airwaves became a national issue in January when Janet Jackson (news) bared a breast during the National Football League's Super Bowl half-time show.
Since then, Clear Channel Communications, which kicked Stern off six of its stations, was fined $1.75 million by the U.S. Federal Communications Commission (news - web sites) to settle all indecency complaints.
Sirius said it would need to add 1 million subscribers to cover the cost of the five-year deal. The company estimates total production and operating costs for the show to be about $100 million annually. XM shares fell nearly 3 percent in early trading.
By luring Stern away from his current employer, Viacom Inc.'s (NYSE:VIAB - news) Infinity Broadcasting, the deal gives a shot in the arm to satellite radio overall, a new business built on attracting subscribers to dozens of radio stations broadcast digitally.
It also gives Sirius, whose shares rose about 17 percent in early trading, a boost in its rivalry with its larger competitor XM Satellite Radio Holdings Inc. (Nasdaq:XMSR - news).
Sirius currently has more than 600,000 subscribers, a small amount compared to Stern's current audience on broadcast radio, where he ranks No. 1 in 46 large markets across the country, including New York and Los Angeles.
But many analysts have said that a move to satellite radio gives Stern more freedom to broadcast his show.
Indecency on the airwaves became a national issue in January when Janet Jackson (news) bared a breast during the National Football League's Super Bowl half-time show.
Since then, Clear Channel Communications, which kicked Stern off six of its stations, was fined $1.75 million by the U.S. Federal Communications Commission (news - web sites) to settle all indecency complaints.
Sirius said it would need to add 1 million subscribers to cover the cost of the five-year deal. The company estimates total production and operating costs for the show to be about $100 million annually. XM shares fell nearly 3 percent in early trading.
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