Rob Jacobson is hoping Howard Stern can do for In Demand Networks what he has done for Sirius Satellite Radio.
Namely, separate young, male fans of the radio star from their money.
On Thursday, Jacobson's In Demand will start airing Howard TV, an uncensored channel revolving around Stern's Sirius show.
"After [Stern] made the jump from terrestrial to satellite radio, he needed a television home that was as expressive as his new radio home," Jacobson said from his Hudson St. office.
"It was a perfect opportunity to not only highlight the benefits of subscription video-on-demand, but also give [Stern] the opportunity to express himself the way he wants to."
Though Howard TV, which will be shown exclusively on In Demand through 2009, will be carved out of his Sirius show, the satellite radio company won't be getting a financial cut - revenue will be divided between In Demand, the cable operators and Stern.
Sources said initial estimates are for 250,000 people to pay the $13.99 monthly fee for Howard TV, which would generate annual gross revenue of nearly $42 million.
In Demand's cut varies by contract, according to sources, but typically ranges from 5 percent to 25 percent of the proceeds. Overall, In Demand, which also operates a pay TV movie service and other services, is believed to generate more than $1 billion in annual revenue.
For its part, Sirius doesn't seem to mind trading profit sharing for free publicity.
"For millions of people who commute to work and want to hear Stern live, there is no substitute for Sirius," said Scott Greenstein, Sirius' president of entertainment and sports. "Howard TV is yet another form of awareness that will drive subscribers to us, which will, in turn, drive our revenue."
The 90-minute video version of Stern's show will be available roughly 36 hours after its initial broadcast on Sirius.
Howard TV's distribution is expected to grow to more than 21 million by the middle of this year, Jacobson said. A distribution deal with Cablevision is expected to be announced Tuesday, and Jacobson said the company is in talks with Charter, Mediacom and Insight Communications about making the service available on those systems.
