The Chances of Stern Succeeding on the Internet

I always liked Howard Stern. Thought the move to Sirius Satellite was brilliant. Not because they paid him $500 million plus stock incentives. That too. Because radio was declining and satellite was the new frontier. Now Sirius is launching a new non-satellite satellite service on the Internet for $12.95 a month. No need to buy the radio. October 25 and 26th are freebie preview days. Sirius also has 74 other channels on its Internet service, but they're going to go to the dance with the guy that brung them -- Howard Stern. Makes sense. But think it through. Stern appeals to older listeners who currently constitute satellite's best chance at new subscribers. But the Internet -- although used by everyone -- is the growth organ of the young. And the young aren't drawn to Stern the way Xers and Boomers are. So if you're not buying any of this reasoning so far, consider that young consumers don't like to pay for anything. They want it free. They want it on demand. It's their birthright. I'm thinking Sirius would be better to develop youth oriented programming for the market they need but cannot hope to reach with old radio guys and fee-based services. And -- God forgive me for saying this -- consider commercials. If what I'm seeing with the next generation is valid, you don't have to look beyond the Internet to see that paid subscription models don't resonate with this future boom market. More on this in future posts. There, I've said it. Commercials. No fees. Blow the satellite market wide open.