Howard Stern Secures Three-Year Sirius Deal After Contract Standoff

Renowned radio host Howard Stern has finalized a new three-year agreement with SiriusXM, a decision he announced on Tuesday morning. Stern expressed his enthusiasm stating, “I’m happy to announce that I’ve figured out a way to have it all. More free time, and continuing to be on the radio.”

Background of the Contract Negotiations

Stern’s future with SiriusXM has been a topic of speculation recently. Earlier this year, rumors suggested his show might face cancellation. In a playful twist, Stern teased listeners about his departure, only for Andy Cohen to jokingly announce his firing before Stern clarified that negotiations were ongoing.

Details of the New Agreement

While specific terms of the contract have not been disclosed, Stern noted it would provide him with “more flexibility.” This hints at less frequent appearances compared to his previous five-year deal, which was estimated at $100 million annually.

The Impact of Howard Stern

• Stern is among the most iconic figures in radio history.
• He transitioned to satellite radio in 2006, drawn by the freedom it offered for content creation.
• His early days with SiriusXM significantly contributed to the company’s growth during a time of technological uncertainty.

SiriusXM has also engaged in partnerships with various podcasters and hosts recently, yet Stern remains a pivotal figure. He mentioned his loyalty to the company, stating, “I love this company. I truly do.”

Subscriber Impact and Industry Context

In 2020, analyst Brian Russ from Credit Suisse projected that Stern’s departure could result in a loss of approximately 2.7 million subscribers for SiriusXM. Currently, the company is focused on achieving $200 million in cost savings by 2025 while managing subscriber retention more effectively. Subscriber numbers have decreased slightly from 34 million in 2020 to 33 million in the second quarter of 2023.

SiriusXM executives have highlighted the importance of Stern’s presence on the platform. CEO Jennifer Witz indicated a mutual desire to finalize a deal that satisfies all parties involved. “I’m encouraged. I think we’re going to get to the right place,” she stated, emphasizing the necessity of aligning Stern’s wishes with the company and listener demands.