Key Points
- Howard Stern signed a new three-year deal with SiriusXM, keeping him on the air through the end of 2028.
- The renewal is Stern’s shortest contract with the company since joining satellite radio in 2006.
- The agreement comes as SiriusXM works to stabilize subscriber growth and refocus on in-car listeners.
Radio personality Howard Stern ended months of speculation about his fate at SiriusXM by announcing a new deal that will keep him at the microphone of the satellite and streaming radio provider for a few more years.
On Tuesday, Stern revealed an agreement was reached with SiriusXM that extends his contract for three more years.
Stern originally joined Sirius Satellite Radio in 2006 as part of a multi-million dollar, 5-year contract. Each subsequent contract renewal was for the same length of time. The agreement announced on Tuesday is the shortest by far, with Stern committed to the company through the end of 2028.
“I’m happy to announce that I’ve figured out a way to have it all,” Stern quipped during a morning segment on his radio show.
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In recent years, Stern’s contracts have granted him and his staff a more-generous allotment of vacation time. His current agreement, which expires at the end of this year, requires Stern to be in the studio on Mondays, Tuesdays and Wednesdays, with extended time off during the summer and mid-winter months.
Long-time listeners have complained about Stern’s frequent breaks, saying they cheapen the value proposition of the program.
SiriusXM may feel the same way: The company issued no press release or public statement on Stern’s contract renewal. A company spokesperson e-mailed reporters with a YouTube link of Stern’s announcement and a handful of quotes from the radio host.
“I still do love being on the radio,” Stern promised. “I think the show is better than ever, I really do believe that in my heart.”
Financial terms of the contract were not disclosed. His last deal was estimated to be worth around $500 million in total, according to the Hollywood Reporter.
Stern provided a significant boost to Sirius Satellite Radio’s subscriber base when he joined in 2006, with the company ending that year at 6 million customers and on track to outpace once-rival XM Satellite Radio. Sirius and XM merged in 2008, and the combined company saw its first profitable quarter the following year.
In recent years, SiriusXM has struggled to grow its subscriber base: Around 150 million vehicles on the road today have SiriusXM tuners installed, but the company’s customer count has hovered between 30 million and 34 million subscribers since the 2020 coronavirus pandemic, according to financial reports reviewed by The Desk.
After a failed attempt to court younger consumers who might prefer streaming live radio on their phones, tablets and smart speakers, executives pivoted to a new strategy focused on drivers, who are more likely to take advantage of annual subscription plans and thus less likely to churn out.
In July, the company announced plans to launch a new satellite radio plan that includes ad-supported music channels, which will allow customers to pay a lower price, similar to ad-based plans on streaming video apps. That plan, called SiriusXM Play, is still unavailable to most customers, and it isn’t clear when it will launch more broadly.
