Will Sirius’ Stern Magic Boost Comcast and GE’s NBC?
Shock jock Howard Stern’s on-air exclusivity to Sirius XM Radio (NASDAQ:SIRI) since 2006 has helped the satellite radio keep up solid earnings quarter-over-quarter, and now Comcast (NASDAQ:CMCSA) and GE (NYSE:GE) are hoping he can add similar value to television on their NBC show America’s Got Talent.
Stern, famous for being outspoken and often outlandish on air, has been a success story for the Sirius, which agreed to a $400 million contract extension for him in 2010. “Sirius XM Radio’s latest quarterly results were especially encouraging on a number of fronts,” Barrington Research wrote in a recent report. “The price increase has now been implemented for 35 percent of the subscriber base. Sirius XM Radio continues its progress in the key metrics that matter.”
Comcast is reportedly paying Stern $20 million for his one-year contract to replace Piers Morgan on the show. America’s Got Talent is in its seventh season.
News Corp (NASDAQ:NWSA) is also hoping that the celebrity factor will add value to its Fox show X Factor, signing pop star Britney Spears as a judge. Spears is reportedly being paid $15 million, 15 times more than co-judge Demi Lovato. X Factor is scheduled to premiere its second season this fall.
Spears had earlier helped a faltering Elizabeth Arden (NASDAQ:RDEN) to huge profits from sales of her 10 perfumes over the last seven years.
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