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Contributors: Douglas McIntyre Jon C. Ogg

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Monday, October 16, 2006

SIRIUS Resorting To "Free Howard Stern," For 2 Days

Republished from 9:45 AM EST

SIRIUS Satellite Radio (SIRI) is going to try the “give it away free for a tease” strategy to lure new users. The Sirius 75 channel roster is available as Sirius Internet Radio for a subscription price of $12.95 per month, but Sirius is going to offer up Howard Stern’s two channels available for free for the two days of October 25 and October 26.

Scott Greenstein, SIRIUS President, Entertainment and Sports, said, "Howard being available live for the first time ever to a worldwide audience is an unprecedented event in the history of radio. Listeners can now get what they have been missing: Howard at the top of his game and more than 75 channels of The Best Radio on Radio. It's now The Best Radio on the Internet."

Will giving Howard Stern away for free for a couple days lure in the subscribers? We’ll have to see what the company says and what the shows are like on those days. Doing the freebies can always be a toss-up as far as a business strategy, and you can bet that if the company starts doing this too much that Wall Street will chime in by saying they are having to dilute themselves to bring in additional subscribers.

What do you think that would do to subscriber acquisition costs?

So far traders don't seem to care, nor do they seem concerned. Shares of Sirius (SIRI) are flat at $3.88, and they have only traded about 2.2 million shares.

Jon C. Ogg
October 16, 2006

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