Stern flap could benefit satellite radio

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Howard Stern's threat to move his syndicated radio program to satellite radio would boost a fledgling medium with a small but growing subscriber base.

The move would be similar to those by George Burns and Jack Benny, two radio stars who helped usher in a new era in entertainment in the 1940s when they moved to television. At the time, TV sets were a luxury afforded by only the very wealthy, but the popularity of Mr. Burns and Mr. Benny helped spur sales of sets to working-class families.

"The movement of Howard Stern would be transformational for the industry," said analyst Kit Spring, who studies satellite radio for Stifel, Nicolaus & Co Inc., a financial services firm in St. Louis.

Since Clear Channel Communications Inc., the nation's largest radio broadcaster, pulled Mr. Stern's program off six of its stations last month, the popular radio host has talked on the air about moving his syndicated program to satellite radio, which reaches about 2 million listeners nationwide.

Because the Federal Communications Commission (FCC) does not place the same restrictions on satellite radio programming that it does on the broadcast airwaves, Mr. Stern is likely to have more freedom to do the adult-oriented material that has made him a favorite target for regulators and critics.

Mr. Spring and other analysts predict that the industry will have 20 million to 25 million subscribers by the end of the decade, but that Mr. Stern or another performer of his caliber could accelerate the industry's growth.

Gregg "Opie" Hughes and Anthony Cumia, two Stern clones fired in 2002 by Infinity Broadcasting Corp. after they staged a sex stunt at St. Patrick's Cathedral in New York, are said to be planning a move to satellite radio.

Mr. Stern reaches about 15 million listeners a day, making him one of the nation's most popular radio hosts. His program features naughty banter and is geared toward adult listeners, and he has parlayed his fame into other careers, including publishing, filmmaking and television production.

Critics have long accused Mr. Stern of crossing the line of good taste, such as in a notorious incident in 1982 when, while working as a disc jockey in the D.C. area, he poked fun at Air Florida after one of its planes crashed into the 14th Street Bridge.