So the new iPHONE has hardware for a SiriusXM tuner.
Sirius with it's live concerts, sports and talk show entertainment has always been a threat to Apple iTunes. When Mel Karmazin hinted at satellite radio 2.0 TIVO capabilities like flagging, downloading and playback, the threat got more real to Steve Jobs.
Rather than take a hit in iTunes profits, Apple is choosing to court SiriusXM. The satellite radio giant is being lured into the iTUNES store for a share of that billion-dollar quarterly cash. Apple needs SiriusXM for its unique, exclusive content.
Enter superstar shock jock and King of ALL Media, Howard Stern.
It just makes too much sense that Howard Stern will be available through iTUNES downloads on the iPHONE (and later, the iPOD). His new contract will grant him a share of those profits.
And remember this...
SiriusXM owns every episode of every Howard Stern broadcast in the history of Howard Stern.
Do you see those 99 cent downloads adding up to big dollar signs for SiriusXM, Howard Stern and Apple?
"I am especially excited that my show will now be heard through SIRIUS XM on mobile devices. Access to my show on mobile devices will open up additional opportunities for my fans to hear me wherever they are."--Howard Stern
I guess Howard Stern is right...he's NOT taking a (cuss word for effect) pay cut...when it's all said and done.
Because of the # of outstanding shares, there will be extreme volatility and day traders/undedicated LONGS looking to make a quick buck and unscrupulous shorts looking to play down the upside.
This will change when Mel issues dividends and share buy backs.
Next year will be all about Satellite Radio 2.0.
Hopefully the big announcement will be the free-ad based version and a partnership with Apple with the iPHONE, iTunes and Howard all involved.
Next year it should hit pre-merger prices.
I'm playing this until $40 so hopefully I can cash out in 5 years when I finish my Masters Degree and come out of college with a house paid for and a kick-fanny education.
iTunes earns 1 billion per quarter, 4 billion per year.
Half billion per year for SiriusXM sounds fair!!!!
Hello $10/share in 2011 run up to $40/share within 5 years!!!