Media Curmudgeon

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May 31, 2006

Stern Settles With CBS

This week CBS announced that Howard Stern and Sirius Satellite Radio had settled the $500 million lawsuit CBS filed against Howard Stern, the self-proclaimed "King of All Media," and Sirius, the "King of All Media Losses," for a measely $2 million.

CBS filed its lawsuit against the egomaniacal Howard and Sirius last February, claiming that Stern had breached his contract by using CBS airtime in 2005 as a platform to promote his upcoming move to Sirius, which took place this last January.

Howard, of course, denied the CBS charges vigorously at the time by saying that his comments on the air were made with the knowledge and permission of CBS executives--they had to know what he was saying if they listened. Howard also bragged that he attracted a bigger audience for CBS and its radio stations. He claimed on the "Late Show with David Letterman" that "If I was hurting them, why did they keep me on the air for 14 months?"

The answer, of course, is that CBS left him on the air in order to keep all the advertising money he generated. It's always about the money.

Most pundits thought that the CBS settlement was a case of CBS backing down from a suit it knew it couldn't win. I don't think so. CBS isn't dumb enough to think it could have won the suit, it just wanted to warn talent not to promote moves elsewhere in the future. I believe that by agreeing to settle for $2 million, that 1) Sirius is settling rather than go through an expensive court fight (I mean how much more money can it pour down the drain), and 2) Howard and Sirius are admitting that Howard was out of line in promoting his move on CBS's radio stations.

But of course Howard is always out of line, and Sirius will be out of money soon.

Posted by Charles Warner at May 31, 2006 01:14 PM

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