SiriusXM, the American broadcasting company that provides three satellite radio and online radio services operating in the United States, plans to launch Howard Stern streaming video service next year. The company as of now has over 31 million subscribers, with 1.7 new subscribers joining in 2016. The new streaming video service is likely to increase subscribers substantially and the company hopes to cash in on the popularity of Howard Stern.
The new streaming video service is made in collaboration with Howard Stern – the most popular SiriusXM star. Howard Stern reportedly signed a 5-year contract with SiriusXM. The company pays him $90 million to host his show on SiriusXM. Howard Stern’s shows bring the company lots of new subscribers and this explains why SiriusXM is keen on launching the new video streaming service. Several popular music artists like Lady Gaga, Metallica and others have performed live on Howard Stern’s show.
The launch date for Stern’s upcoming video streaming app was initially set for 2016. But it looks like the company couldn’t meet the schedule. The service will now roll out in 2017. Speaking about the delay, SiriusXM CEO Jim Meyer said – “We are deep into it. We are also getting that in a position where we can begin to have more conversations with Howard himself, and clearly, we will launch our video service with Howard. No question there. I hope I have more to say about this in the next couple of months, but you should assume it’s sometime next year.”
SiriusXM was formed after the US Federal Communications Commission (FCC) approved the acquisition of XM Satellite Radio Holding Inc. by Sirius Satellite Radio, back in 2008. The merger brought the combined companies a total of more than 18.5 million subscribers. The merger was opposed by many, stating that it would create a monopoly. But Sirius and XM argued that a merger was the only way that satellite radio could survive. And the rest is history. SiriusXM is now seeing a steady increase in profits, with 2016 Q3 earnings rising by 16 percent compared to 2015. Revenue is also increasing with 9 percent rise, jumping to $1.3 billion.