NEW YORK (CNN/Money) -
Sirius Satellite Radio would like to bring morning shock jock Howard Stern over before his official start date, a top official at the company said Thursday.
"Would we like to have him earlier? You betcha," said Sirius chairman Joseph Clayton in a speech to Wall Street bankers and analysts.
In other comments, Clayton criticized a Wall Street Journal analysis Wed. that argued that Sirius has made some costly bets lately, including taking on the Stern show for $100 million a year and a deal with the National Football League, that are too risky given the company's growth model.
The article, coupled with concerns expressed by Wall Street analysts after the company's stock hit a 52-week high, sent Sirius shares down. After losing 23 percent of their value Wednesday, Sirius (up $0.30 to $7.20, Research) stock was up slightly in early morning trading Thursday.
Clayton dismissed the newspaper article and tried to calm investor jitters Thursday. He said Sirius is on track to hit 1 million subscribers at year-end and that 100 million subscribers a decade from now is possible.
He acknowledged, however, that the monthly subscription price for Sirius will have to increase. "Does anybody really think that the price will stay at $12.95 (a month)?" asked Clayton.
He likened the pricing model to subscription-based television, where costs have gone up as satellite and cable operators have added more features.
Sirius has 120 channels, nearly half of which are commercial-free.
Focus on Stern, smut
But it was Stern who caught the attention of audience members who came to hear Clayton speak at the UBS Media Week conference in New York.
Responding to questions, Clayton did not say whether Sirius and Stern's current employer, Viacom-owned Infinity Broadcasting, are in talks about an earlier move, but speculation about such a step has been rampant among industry observers since Stern announced he would leave public radio for paid radio in October.
On Tuesday, Infinity president Joel Hollander said his company was unwilling to give up the cash flow that Stern's show generates, but joked that he would take Stern off the air right now if someone was willing to cut him a check for $100 million.
Hollander added that the current plan calls for Stern to finish his contract, which expires at the end of 2005.
In other comments Thursday, Clayton promised to give Stern "all the freedom he wants" to host his morning show on Sirius. But he quickly noted that the Federal Communications Commission issues the company's licenses.
Federal regulators "do have something to say, not only over free terrestrial radio and television but also over paid services," said Clayton. "That being said, paid service has not been treated in the same way."
Commenting on speculation that Congress will pass legislation applying anti-smut laws to paid services like satellite radio and cable television, Clayton said he did not think that a new law could survive scrutiny in court.
"It would be a very difficult fight to win," said Clayton, adding that indecency is hard to define.
"I don't think anybody in this room can tell you truly what indecency is or not," he said.
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