SIRIUS XM Holdings Inc.SIRI recently signed a 12-year licensing deal with popular TV personality Howard Stern's production firm. As per the contract, Stern will continue to entertain SIRIUS XM viewers by producing as well as hosting The Howard Stern Show on for the next five years. Moreover, the deal will allow the satellite radio company to start its first video programming project with Stern. However, the financial terms of the agreement have been kept under wraps.
As per Variety, Stern had earned as much as $80 million every year from the previous contract that was inked in 2010. Taking the previous sum into consideration, the fresh contract will likely be worth over $100 million annually.
Per the latest deal, The Howard Stern Show will be available live on SIRIUS XM's Howard 100 channel between 7:00 am to 11:00 am ET. Meanwhile, the repeat telecast will be available throughout the day on the SiriusXM app or On Demand online.
Furthermore, special programs concerning the current and classic episodes of the show will also be available on the channel.
Under the agreement, SIRIUS XM will also gain access to Stern's extensive audio and video library which includes popular shows and performances which date back to more than 30 years.
The launch of the Howard 100 and 101 uncensored satellite channels in 2006 at SIRIUS XM gained immense popularity, revolutionizing satellite radios. The popularity of the channels has helped SIRIUS XM expand its subscriber base.
In the third quarter of 2015, SIRIUS XM added 525,000 subscribers which reached the company's total subscriber tally to 28,960,000 as of Sep 30, 2015, up 8.3% year over year. Hence, the contract renewal with Stern will not only boost subscriber growth but will also retain customers for the company. Further, as per Bloomberg, loss of Howard Stern will impact SIRIUS XM's annual top line by nearly $240 million.
SIRIUS XM currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same space are Central European Media Enterprises Ltd. CETV , Entravision Communications Corporation EVC and Sinclair Broadcast Group, Inc. SBGI . All three companies carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>