[Via Business Filter ] Bill Trancer blogs about Howard Stern's brand equity, detailing the drop off in traffic to Stern's website (allegedly work safe -- depending where you work, I suppose).
While Trancer clearly shows that Sirius' acquisition of Howard Stern's radio show is responsible for that satellite radio service's dramatic increase in subscribe base in the past year -- what's known as the Stern effect -- he questions whether or not this move, at the same time, significantly diminished Stern's overall brand value.
Stern knew he would be reaching a much smaller audience after his move from FCC-regulated public airways, to the (at least for now), much smaller universe of subscription-service radio. Aside from the controversial financial deal, worth $500 million, that brought him to Sirius, Stern cited a desire to be away from government regulation as his motivation for the move. He claims he would have retired otherwise, and was prepared to do so, after the Janet Jackson/Superbowl incident in 2004.
I don't know if Stern or his fans are concerned over Stern's "brand value." Sirius is now an equal to XM in the satellite radio wars, and the Stern Effect, even if it has peaked, played a significant factor -- the most significant factor -- in that growth spurt. CEO Mel Karmazin should be happy.
Michael Canfield is a private investor, a business and media writer, living in Seattle. He doesn't own stock in Sirius or XM.
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Reader Comments (Page 1 of 1)
9-14-2006 @ 1:59PM
Chad said...
No doubt that Stern has played a huge role in the subscription increase for Sirius. I bought one just for his show and I know several other people I work with who have done the same or are planning on doing so.
9-14-2006 @ 2:01PM
Scott Harvey said...
Personally, I am not a fan of Howard Stern. Never was, never will be. I did however sign up with Sirius, and I did so because of the brand exposure Sirius received in the period leading up to the switch. I enjoy commercial-free programming on my way TO work, and listen to my favorite FM station while driving home. I have the best of both worlds!
9-14-2006 @ 2:01PM
John Osborne said...
Stern is the reason that I bought a subscription to Sirious. In listening to both XM and Sirius, I find Sirius to be superior in content, prgramming, and selection. Sirius I believe, offers more harder to find content, original programming, and different genres. I think XM is more like terrestial radio, designed to sell CDs, Sirius seams to be interested in satisfying the true Audiofile.
9-14-2006 @ 2:31PM
Tommy said...
I purchased Sirius to follow Stern. I am your average fan but it is safe to say there is a lot on satellite then i expected. The number one feature is the lack of commercials, it makes listening to the radio so much more enjoyable.
9-14-2006 @ 5:16PM
mike said...
this is a totally ridiculous news article - how could the "Howard Stern Effect" be in full swing unless Mr. Stern himself was a major factor? who cares if his internet hits are down? doesn't it make him a bigger force to say that millions and millions of people decided to pay for Sirius Radio just based on his daily show? internet hits add up to Nothing - having a few million people shell out $12 a month to hear him Does.
9-20-2006 @ 8:48AM
EMIL J KOVACH JR said...
Being A Private media Analyst, I Can Reflect A little On Talent, And It's Value To The Market Place.
First--Howard Stern Is A Radio Personality, He Only Exposure To The Visual Side Of The Business--Was His Taped RADIO Shows--That Were Shown On "E" Entertainment.--And A self Serving PRIVATE PARTS--That Fill A Need To Tell Existing Fans His Life Story.
But A Film Star--He Will Never Be.
When You Watch Oprah Of Martha Stewart--You WATCH Them--I Believe These Sat Providers Paid A Lot Of Money, For A Direction--That Was Never Intended For SAT. When Marha Makes Up A Table Decoration--Does That Transfer To Radio--I Don't Think So--Oprah Is A Visual Experience--Not A Radio Expierince--They May Lead Fans To Radio--But They Are Left Wanting--To The Other Guests Of There So--Kinda Abandoned.
That Will Prove Itself Out.
Howard's Fans Will Follow Him--To SAT--His Hard Core--Is About 3 - 5 Million Fans--They Have His Book, DVD, And His Show, His Fans Want To HEAR him, And See A Little Of Him.
With Oprah And Martha--It's The Exact Opposite--Both The Poroviders Are Spending A Lot Of Money On A Stab In The Dark--For Future Cancellations,
Martha And Oprah Belong On TV--And Howard--On The Radio.
Howard Is Radio's Johnny Carson--There Is Only One--And A Lot Of Copy Cat Wannabes--
XM & Sirius Need To Develop Programming For A Radio Audience--That Wants Programming--Minus Commercials--Which Was SATELITES Original Promise--
Both These Providers Need A Lot Of Help--In THE MUSIC Side Of There Product--The Business News--And News In Gereral--Is Well Satisfied.
More And More Research I See--Shows 60 Million Baby Boomers--Who Have All The Money--Still In The Work Force--At Peak Earning Power--And Would Gladly Pay A Subscription Fee--Very Very Disappointed--With SATs Content--The Juke Box Approach To There Music-- And Lifestyle--Is Not Entertaining At All--To This Group.
As They Are Chased Away From The Broadcast Bands--By The Combination Of INFOMERCIALS And Elevator Music--AM & FM Bands Have Become--Sat Is Missing A Golden Opportunity.