Can SirirusXM Survive Without Howard Stern by Felix Gillette - Essay Example

Talent is what it takes the radio and TV stations to hire particular individuals. This article a vivid example of how talent influences the market niche of SiriusXM. Presenter Howard Stern uses his extraordinary talent to influence a large audience, which makes the corporation more profitable compared to its competitors in the same industry. Stern argues that there is a need for him to be paid more since his talent has made SiriusXM radio increase its revenues to $1.4billion pre-tax income (Gillette, 1).

Howard Stern’s talent of moving the audience led to the growth of the audience listening to SiriusXM up to 27.3 million in 2014. This kind of talent led to the assimilation of the XM Satellite. This is an indication of rivalry in this industry, where talent is the driving force of the economy. The managers of various satellite radio stations are compelled to pay more to attain a superclass of talent like that of Stern. This brings us to the state of things as they may exist when Howard Stern exists. Stern’s staggering relationship with the management of SiriusXM puts his career in a balance in this corporation and this leaves a vacuum if Stern decides to quit (Gillette, 1). In essence, the article asserts that talent is the single most element that is driving the world and this explicitly indicates that there would be no SiriusXM without Stern.

The ever-increasing consumer base attributed to Sirius XM immensely attributed to the commonly integrated audio service, which Sirius XM has capitalized on and ensured that it is done in cars, smartphones, and computers. This aspect of product differentiation has made this corporation stand out among numerous competing companies. For instance, Silicon Valley and Apple’s entry into the market indicate the nature of the stiff competition that is created and this needs superior marketing and talent to thrive well in the modern competitive market milieu (Gillette, 1).  The directors of Sirius XM feel the heat of the competition in the Radio industry and this compels them to state that they would pay Stern any amount of money as long as he ready to work. This is an indication that solely talent drives the radio industry and it should be well paid for the corporations to make profits. In essence, Stern’s exit will see SiriusXM lose talent, market niche, and consequent loss of revenues and this may end up to either poor performance or closure of the radio station. This article illustrates that the audience will be able to pay for the radio content as long as it is easy to configure and enticing.