After much speculation, shock jock Howard Stern will be staying with satellite radio giant SiriusXM. With his current contract expiration looming, Stern announced a new five-year deal with the satellite radio provider this morning on the Howard Stern Show.
In a related Inquisitr report, Stern ended his relationship with America's Got Talent in September. Now, he will have more time and energy to focus on the radio show, as well as developing a new video service for Sirius.
According to the New York Daily News, the new agreement between Stern and SiriusXM comes with a 12-year agreement that allows the satellite radio to use Stern's past audio and video content from shows, specials, and performances. While details are still being worked out, he will also play a part in the development of a video-streaming service for the satellite radio provider.With the radio icon's current contract expiring at the end of the year, the news ends the wild speculation of what Stern's next move would have been. Some said he was considering a move into internet radio, while others thought maybe he would retire.
During Monday's show, co-host Robin Quivers asked what would happen if a new deal wasn't inked.
"It means that's it. That'll be our last show and let's say we don't have a contract or anything, we'll just go away," was Stern's reply.
For weeks leading up to the contract's end date, callers were asking what he was going to do, and Stern repeatedly said that his mind was not made up. He did drop some hints that he preferred to stay with Sirius.
The self-proclaimed "king of all media" was sure to have some options if the agreement with Sirius fell through. He might have moved on to internet radio through Pandora or Spotify. With internet radio still in its infancy, having a name like Stern would have been a tremendous boost.
Stern fueled the speculation by saying he already has an attractive offer on the table, but refused to give any names. Prior to the contract, Stern made it clear you weren't going to find him podcasting anytime in the future.
"If you want to be in radio, forget a podcast," Stern said on-air. "Podcasts are for losers."
Ever since the on-demand channel, Howard TV, was shuttered in 2013, the radio host has been looking for another solution to offering video programming, similar to his previous E! channel show. He was even taking a serious look at a possible Netflix show.
Despite the numerous possibilities that could have been, now that a contract has been signed, we know Howard Stern will be on SiriusXM for the next five years.
However, if they had not won Stern over, Sirius would have had a big financial hole to fill. The Howard Stern Show has been a consistent winner and a money maker for the radio giant. Losing him was not an option.
The controversial Stern wanted to move from broadcast radio to satellite in 2004 and, at that time, Sirius and XM Radio were the only contenders. Yet, it was Sirius who was able to win the contract to add the show to their lineup.
With Stern committed, the subscriber base of Sirius grew exponentially, eventually exceeding rival XM Radio. Some even credit Stern for helping Sirius ultimately buy out the competitor.
Currently, Sirius has approximately 29 million customers, and last year made $1.4 billion in profit. A survey of listeners found that 12 percent, or 3.5 million, tune in to Stern. Meanwhile, five percent of those said they would cancel the service should Stern leave. This is a potential loss of $240 million in annual revenue for the company.
On Fox and Friends, Howard Stern's wife, Beth was asked about her husband's new deal. "He wasn't finished yet, so there are five more years of amazing radio to come," she said.
After the news of the Stern contract broke, shares of SiriusXM rose 3 percent, to $4.12.
Obviously, Howard Stern is one of the biggest reasons people subscribe to SiriusXM, and losing him would have been a major setback for the company. Now, with a new contract, fans will be hearing and eventually seeing the 61-year-old Stern for another five years.
[Photo by Erika Goldring/Getty Images]