Subscription service Sirius described Stern's defection as "the most exciting and transformational event in the history of radio", claiming that he had unmatchable power to migrate his fans to other media.
Stern's show is syndicated nationwide, making him the number one national radio host among men aged 18 to 49. However, the fallout from "Nipplegate", which saw US media toning down programming, also hit Stern. His show was dropped by conservative-leaning and Republican-supporting Clear Channel Networks, whose stations had syndicated his show.
In response, Stern turned away from talking about sex to discussions about freedom of speech. Now he will leave CBS and MTV-owning Viacom's Infinity Broadcasting radio operation altogether, with his new programme on Sirius to begin in January next year. He has signed a five-year, multimillion-dollar agreement with the company.
"It has been my dream to have the top-rated show in radio since I was five years old," Stern said. "Sirius -- the future of radio -- will take this dream to a whole new level as I bring my fans my show my way. It will be the best radio they will ever hear."
Sirius broadcasts commercial-free music and sports programming via satellite to homes and cars across the US. It is understood Stern will have more freedom to talk about what he wants in his new show.
Scott Greenstein, Sirus president of entertainment and sports, said: "Howard is an incredible creative and comedic icon, and we are thrilled that he chose Sirius to broadcast what everyone believes will be the most exciting part of his career.
"There is absolutely no one like Howard Stern, and I'm excited that, for the first time, his show will be heard across the entire country as it was always meant to be heard."
As well as his hugely successful radio show, Stern has written two books and starred as himself in the film adaptation of one of them, 'Private Parts'.
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