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  800-599-RADIO | Text DR Radio to 511-511 | 714-787-0101 International

By Steve Pollak, RadioActive Media Creative and Media Director

Tick, tock, tick, tock….the clock is winding down on Howard Stern’s contract with Sirius satellite radio. I’m sure Las Vegas has odds on what is going to happen, but we may hear something as early as the next month or so. 

Howard’s five-year $500 million contract with Sirius ends on December 31^st this year. There is a lot of speculation on what will happen at the end of this contract. Will he go month to month with Sirius? Will he replace Simon Cowell on American Idol? Is he going on his own or he is heading back to terrestrial radio?

Throughout his radio career, Howard’s ratings have increased every year. His move to Sirius in 2006 from terrestrial radio was due in part to the FCC coming down on his show and fining the network. Satellite radio doesn’t have the same restrictions as terrestrial radio so it’s more a free reign for Howard. (Follow the court ruling that the FCC indecency rule is unconstitutional at http://j.mp/radiofans.

His fans loyally followed him to Sirius helping them increase subscription numbers as well as advertising revenue. If Howard leaves, will his fans leave also? That seems to be a major question. There is no doubt that some of Howard’s fans will drop Sirius out of loyalty to him and because his two stations are the only ones they listened to. Others used this as an introduction to Sirius and are expanding their listening to more stations and will not drop their subscriptions.

Love him or hate him, Howard is very important to Sirius because he brings in subscribers as well as advertising revenue and he will be missed by them if he doesn’t sign a new contract. He has made a lot of money for Sirius and they will probably do what they can to keep him on board. 

Howard has loyal fans that hang on his every word and we at RadioActive Media understand the power of that loyalty. While the signs seem to show Howard is likely to renew, if he doesn’t the pressure for time on his show will increase rates. 

Howard has endorsed many of our clients with live readings of their ads on his show and he can do the same for you. If you are interested in hearing Howard read your spot, get in touch with Jeff Pollak at 800-559-RADIO (7234) or text DR RADIO to 511-511. 

We’re such hard core believers that we’ve even had Howard do a spot for us! Hear Howard’s recorded spot for RadioActive Media. Howard Stern on RadioActive Media

@radioactivemed

800-599-RADIO | Text DR Radio to 511-511 | 714-787-0101 International

By Steve Pollak

Some radio stations are promoting HD Radio like it’s a new medium for radio, but it isn’t. HD radio allows AM and FM radio stations to switch to digital broadcasting from analog broadcasting. Basically HD radio upgrades terrestrial station‘s signals so that AM stations have a sound quality like FM stations and FM stations have a sound quality like a CD.

It is being compared to satellite radio where new programming and new opportunities for radio will occur, but that’s not what is happening. HD radio is more like HDTV which did not promote new programming; just clearer signals. Cable TV is what brought in new programming and content to television.

HD radio offers song title and artist information and tagging for later purchase on iTunes. While the sales of HD radios are increasing and more vehicle manufacturers are offering the radios as standard equipment in new cars, only 1.3 million total had been sold by Dec. ’09. Consumers can get HD radio when they download free station apps.

Currently there are no ratings available for HD stations and radio reps are using these stations as “add-ons.” Radio station ad sales have any pricing for HD radio. Instead, stations and their websites promote their latest iPhone apps or that they are streaming their content on their sites.

Radio stations need to change their focus from thinking of HD radio as a medium and realize it’s a technology. Like satellite TV added broadcast stations to its offerings, satellite radio should add the best radio stations to their roster and share revenue. Notice that Clear Channel’s KIIS Channel is an example of that which airs Ryan Seacrest’s show.

If terrestrial stations are viewing satellite radio as a threat, they need to put more effort into improving programming on current AM and FM stations, whether digital (HD) or analog.

I think in the next couple of years it will be hard to find an HD radio for sale. What are your thoughts on HD Radio?

@radioactivemed