Those RRRRs said:Is anyone going to pay him that much on terrestrial? I don't think there's any chance he comes back.
But that's the point. Sirius can't afford to keep him; especially if the merger with XM doesn't go through.
Unless through some miracle Sirius becomes very successful within the next three years, I seriously doubt they will sign him to another contract such as this one.
How can they? Without this merger, both companies will be in serious trouble.
Stern may have no choice but to go back to terrestrial radio and take a pay cut.
The Howard Stern Show for $100 million a year is a bargain for Sirius. Break $100 million a year down and it's 643,500 subscribers at $12.95 a month times 12 months. That's all they need to break even. I think it's a lock that if Stern left Sirius, many more than 643,500 full-price subscribers would cancel.
By the time his contract expires at the end of 2009, internet technology might be advanced enough that he might be able to get 643,500 people to pay $12.95 a month to listen to the show on the internet, even if Sirius died. If I could download a podcast of the Stern show for something like $8 a month, I'd pay.