Radio Survivor

I wonder if anyone remembers  the last condition that Sirius XM agreed to meet in order to get the government’s permission to merge. If you recall, click here and we’ll send you a free, lifetime subscription to Radio Survivor. If not . . .

Back in July of 2008, Sirius XM agreed to lease out four percent of its combined full time audio channels—a minimum of twelve channels all told—to “qualified entities,” which everyone presumes means minority broadcasters. A whole lot of candidates have offered to take these channels, but there’s a problem. The FCC has to come up with a process that doesn’t get it sued for establishing an unconstitutional ethnic quota system, or something like that.

So the Commission has been kicking this little monster down the road for almost two years. But a new filing in the Sirius docket suggests the agency may finally be getting its act together (hope springs eternal).

During a phone conversation, one channel candidate reports in his ex parte statement, an agency staffer “stated [that] the FCC had been working through several issues regarding whom, what and or how the Qualified Entity or Entities would be granted the proposed channels. She also hinted that the FCC had been working through several of the issues including Adarand and an application process that is being devised to be implemented.”

You’re probably wondering what that italicized word means. In the Supreme Court case Adarand vs. Pena (1995) the court ruled that Federal affirmative action minority contractor programs must be based on “strict scrutiny.” That is, if they employ racial and ethnic criteria, they have to demonstrate that the racial/ethnic group receiving favor has historically and/or presently faced a disadvantaged situation. The program can’t just be based on race alone.

So, generally speaking, government agencies now do what are called “Adarand Studies” to justify their affirmative action programs. Perhaps that or something like it is being planned here. It should be noted that that summary of this conversation did not come from the FCC but from a channel applicant. But it does seem like the Commission is still trying to get this program going, and may even succeed prior to Howard Stern’s 95th birthday.

After languishing in near-penny-stock territory for the last year, Sirius XM Radio stock hit the dollar menu on Wednesday, topping out at $1.05 a share. Investors who bought their stock a year ago when it sold for less than 20 cents are probably cheering. Sirius hasn’t seen the plus size of one buck since September of 2008.

The prevailing opinion on Wall Street seems to be that investors think Sirius XM has finally gotten its financial affairs in order, along with adding a net of 257,000 listeners–more than expected–in the fourth quarter of 2009.

There also seems to be a growing confidence that, despite all the recent hoopla, Howard Stern will sign a new contract with Sirius. I don’t really understand how that’s a strong sign of strength for Sirius, although I guess it can be seen as a indicator of stability. If Sirius has to cough up another $300 million to keep Stern I really wonder if it will really be worth it. Even given Stern’s recent headlines over his claimed invitation to join American Idol, I doubt he has the magnetism to draw a significant number of new listeners. At best, Sirius can hope to hold onto the current crop of die-hard Stern fans.

But, then again, getting the stock price over $1 is only a relative achievement. Although the increase will likely help the company avoid a reverse stock split. Sirius’ viability will depend on how costly it is to retain Stern and how well it can continue to add listeners, despite very few new receivers being announced at last month’s CES.

There was once a time when a rare breed of radio DJ could scare up controversy and big ratings–not to mention FCC indecency fines–using just his voice, a few on-air cronies and whole lot of bravado, innuendo and hot air. Remember Howard Stern? Arguably the original “shock jock” he was one of the few American radio DJs able to make a nationwide name for himself, including late night talk show appearances and even producing an autobiographical feature film. He made big news in 2004 when he abandoned broadcast for Sirius satellite radio. But once Stern made the transition at the beginning of 2006 he pretty much faded from the mainstream limelight. CBS Radio made attempts to fill the void–such as tapping former Van Halen signer David Lee Roth, who lasted about four months. But no new jock has been found who can replicate Stern’s nationwide morning show dominance.

Chicago-based Mancow Muller was one potential candidate for the King of All Media’s throne. Just as Stern prepared to exit the broadcast airwaves Mancow was experiencing a boost in the number of station’s carrying his “Morning Madhouse” program, and was even beating Stern in the ratings in his home market. Yet only a half-year into Stern’s absence from terrestrial radio Mancow was booted from his home flagship station, Chicago’s Q101. Though the Madhouse continued to air in syndication, Mancow’s candidacy to replace Stern seemed to fade.
(more…)

The Parents Television Council has a message for Sirius radio shock jock Howard Stern’s reported plans to join American Idol: No pasará—he shall not pass.

“WHEREAS Howard Stern is one of the most profane, sexually-explicit and anti-family performers in the history of the broadcast medium;” declares the PTC’s latest resolution and petition (which the group would like you to sign), “and in discussing the possibility of becoming a judge on American Idol on his radio program gave audiences a preview of what he would bring to the table as a judge, talking about getting ‘little boys hard’.”

And, if the reports about this prove true . . .

“We [you, if you sign the petition] will no longer watch the program; we will share our concern with our friends, family and others in our social circle; and we will contact every sponsor and urge them to consider whether they should associate their corporate image with a man who talks about ‘getting little boys hard.’  And if Stern says anything that we feel is in violation of broadcast decency laws, we will take immediate action by filing complaints with the Federal Communications Commission against our local Fox affiliate.  We ask you to immediately repudiate these rumors and commit publicly to keeping American Idol safe for family viewing.” (more…)

#1 in our series on radio trends of the decade

At end of the first decade of the 21st century there are more audio entertainment options available than any time before. Even if traditional broadcast radio has a case of the doldrums, the viability of radio-like media has never been stronger. Satellite radio is one medium that entered the scene, although its long-term prognosis is still hazy.

By 2000 the perception that commercial radio had seriously declined in quality was widely held. Even listeners unaware of the massive consolidation in the industry perceived the tightening of playlists, more repetition, the inability to talk to a live DJ and make a request and an increase in commercials.

Then, with what seemed like perfect timing, two companies emerged on the scene to offer up a new radio service that promised a real alternative: satellite radio. Americans were already accustomed to receiving television by direct broadcast satellite. But satellite radio would be different. Where satellite TV mostly offered a cable-like service with the same channel, the new satellite radio companies–XM and Sirius–would offer up scores of new radio channels produced and programmed by the companies themselves.

Both companies vowed that their music channels would represent a return to the values of progressive rock radio, with programs hosted by live DJs choosing music according to their informed tastes. By the time both services were live in 2003, there were countless press profiles marveling at Sirius and XM’s array of narrow program genres and guru-like hosts. Home entertainment magazine Sound and Vision ran a lengthy cover story in June 2003 that asked “What’s so great about satellite radio?” The question was answered by four hosts from each of the services. Remarks by Lou Brutus, programmer for the XM freeform-revival station “Special X” were characteristic:

I don’t care how many CDs you have, there’s never been anything like Special X. It could be the day-to-day stuff that falls under the umbrella of “weirdness,” where you might hear “What’s He Building in There?” from Tom Waits, followed by William Shatner singing “Lucy in the Sky with Diamonds,” followed by a 28-minute Jack Kerouac piece… The people at XM are thinking all of this stuff out and putting it together in coherent neighborhoods of sound, for lack of a better term. When radio is done right, I think it’s the most personal medium of them all. *

(more…)