Recently the “King of All Media” Howard Stern announced his agreement with SIRIUS Satellite Radio, the question is what type of impact will that have on the world of radio and it’s advertising revenue?

 

Well lets just look at the impact that Howard Stern himself has made on the world of radio, he is undeniably one of the most popular figures in the world of all media not just radio. He has made his mark on media as being the pioneer of what they have dubbed the “Shock Jock”, but before that was popular he was one of the only radio personalities that had the vision and more importantly had the heart, for lack of a better word, to make his own path and not follow the herd.

 

He created a revolution of sorts in the world of radio spawning a new breed of Disc Jockey in all of the major radio markets. Stern has overcome adversity and has been pinned to the cross more times than not. He has commanded loyalty from his audience and from his team, this has helped him conquer any market that he was allowed to enter.

 

So him being one man, how is this going to possibly have any major effect on radio advertising?, Howard Stern is a leader and an innovator, his listeners are loyal to him, these are ratings, high ratings equal increased advertising dollars. He is essentially the “Pied Piper” of the radio but this doesn’t only hold true for his listeners but it holds true for the industry. Is it out of the question that he will attract the best of the best to follow him to SIRIUS?, I think it’s more of a reality than most radio stations want to admit.

 

So will his jump will have an effect on the advertising revenue for his station 92.3 and the affiliate stations that he is airing on, time will tell, but if ratings equal advertising revenue, what happens when the ratings drop?, it doesn’t take a rocket scientist to figure that out. Now its also not hard to figure out that SIRIUS is going to want to tap into everything that Stern brings with him so do not be surprised when the cost of subscribing to satellite radio drops, which will allow a greater fan base to listen to the program.

 

The question is how much of an effect will this have on radio advertising revenue in general, will this be a domino effect and have the results of the AM station?, I can’t predict the level of impact but if I were the “Radio Advertising Bureau” president I would take a deep hard look into it, because whether you love him or hate him, Howard Stern has become an Icon in broadcast radio.

 

Louis Victor, New Age Media Concepts
October 8, 2004