http://mediamatters.org/blog/201205080013
[Zeppnote: this comes at a time when Limbaugh's fans, desperate to try to
vindicate their hero, have renewed their attacks on Sandra Fluke, getting
ever nastier with the lies and smears]
Limbaugh Affiliate Cumulus Media Reports Millions In Lost Revenue
May 08, 2012 6:25 pm ET by Angelo Carusone
Last night, Cumulus Media, a radio company that carries Rush Limbaugh's
show on 38 of its stations, announced millions in losses directly
attributable to Limbaugh's show.
From Radio Ink (emphasis mine):
Monday evening Cumulus CEO Lew Dickey said the advertiser boycott
cost his company "a couple million" dollars in ad revenue in the first
quarter and "a couple million" in the second quarter. He said things look
like they will be back to normal in June. Cumulus carries Rush Limbaugh
38 markets and blames 1% of the 3.5% drop in revenue for the quarter on
the Rush boycott. Dickey said Cumulus was "hit pretty hard by this."
This report certainly undermines protestations from Limbaugh and his
crisis manager that everything is fine.
That said, I want to unpackage this news a bit to: 1) explain how this
impacts the marketability of Limbaugh's show; and 2) address Cumulus'
remark that business should return to normal in June.
In terms of impact...
Cumulus confirmed that advertiser exits from Limbaugh's show result in
lost revenue. This is important when you consider what this means for the
overall marketability of Limbaugh's show.
Rush Limbaugh's show is syndicated by Clear Channel's Premiere Radio
Networks. Limbaugh is broadcast on approximately 600 stations. Clear
Channel carries Limbaugh on some, but the bulk of Limbaugh's platform
comes from affiliates.
Cumulus is but one of many affiliates carrying Limbaugh's program. If
they're losing money due to advertiser losses, other affiliates are
likely also losing money. If carrying Limbaugh on 38 stations results in
millions in advertiser losses over the course of two months, then when
you factor in all the other affiliates as well as Premiere's own
advertiser interests, the scale of lost revenue associated with
Limbaugh's show is likely quite significant.
Further, Cumulus (like some other affiliates) pays a hefty price to
broadcast Limbaugh in certain markets. So, not only are affiliates
directly losing money because they made the business decision to keep
Limbaugh, but they're also paying Premiere for the pleasure of losing
money. This certainly helps mitigate some of Premiere's losses, but I
doubt it compensates for the overall damage that has been done to the
business health and marketability of Limbaugh's show.
In terms of business returning to normal in June...
Talkers Magazine reported that Cumulus CEO "Dickey says everything seems
pretty much back to normal for June."
I suspect this comment raises some questions, so I want to quickly
address it.
First, I'd note that this remark was made by the CEO of a public company
after reporting millions in lost revenue. He had to address the losses
and provide some assurances to investors that the losses will be
addressed. In other words, I think it's extremely unlikely that he would
get up there and admit that they have lost a lot of money and continue to
keep on losing money in the future.
Second, we haven't seen any evidence of a massive return of advertisers.
At this point, it seems like the advertisers that left are unlikely to
return. And, we continue to see advertisers leaving the program. This no
doubt has a lasting im
Limbaugh Affiliate Cumulus Media Reports Millions In Lost Revenue
May 08, 2012 6:25 pm ET by Angelo Carusone
Last night, Cumulus Media, a radio company that carries Rush Limbaugh's
show on 38 of its stations, announced millions in losses directly
attributable to Limbaugh's show.
From Radio Ink (emphasis mine):
Monday evening Cumulus CEO Lew Dickey said the advertiser boycott
cost his company "a couple million" dollars in ad revenue in the first
quarter and "a couple million" in the second quarter. He said things look
like they will be back to normal in June. Cumulus carries Rush Limbaugh
38 markets and blames 1% of the 3.5% drop in revenue for the quarter on
the Rush boycott. Dickey said Cumulus was "hit pretty hard by this."
This report certainly undermines protestations from Limbaugh and his
crisis manager that everything is fine.
That said, I want to unpackage this news a bit to: 1) explain how this
impacts the marketability of Limbaugh's show; and 2) address Cumulus'
remark that business should return to normal in June.
In terms of impact...
Cumulus confirmed that advertiser exits from Limbaugh's show result in
lost revenue. This is important when you consider what this means for the
overall marketability of Limbaugh's show.
Rush Limbaugh's show is syndicated by Clear Channel's Premiere Radio
Networks. Limbaugh is broadcast on approximately 600 stations. Clear
Channel carries Limbaugh on some, but the bulk of Limbaugh's platform
comes from affiliates.
Cumulus is but one of many affiliates carrying Limbaugh's program. If
they're losing money due to advertiser losses, other affiliates are
likely also losing money. If carrying Limbaugh on 38 stations results in
millions in advertiser losses over the course of two months, then when
you factor in all the other affiliates as well as Premiere's own
advertiser interests, the scale of lost revenue associated with
Limbaugh's show is likely quite significant.
Further, Cumulus (like some other affiliates) pays a hefty price to
broadcast Limbaugh in certain markets. So, not only are affiliates
directly losing money because they made the business decision to keep
Limbaugh, but they're also paying Premiere for the pleasure of losing
money. This certainly helps mitigate some of Premiere's losses, but I
doubt it compensates for the overall damage that has been done to the
business health and marketability of Limbaugh's show.
In terms of business returning to normal in June...
Talkers Magazine reported that Cumulus CEO "Dickey says everything seems
pretty much back to normal for June."
I suspect this comment raises some questions, so I want to quickly
address it.
First, I'd note that this remark was made by the CEO of a public company
after reporting millions in lost revenue. He had to address the losses
and provide some assurances to investors that the losses will be
addressed. In other words, I think it's extremely unlikely that he would
get up there and admit that they have lost a lot of money and continue to
keep on losing money in the future.
Second, we haven't seen any evidence of a massive return of advertisers.
At this point, it seems like the advertisers that left are unlikely to
return. And, we continue to see advertisers leaving the program. This no
doubt has a lasting impact on the long-term marketability of Limbaugh's
show. That said, perhaps Cumulus has done a better job of managing their
ad traffic and mitigating the damage associated with continually running
ads in error.
Third, perhaps Cumulus is operating under the assumption that individuals
and organizations will stop engaging on this issue. This is a false
assumption. We continue to see evidence of individuals across the country
digging in, organizing and contacting their local advertisers.
Additionally, the National Organization for Women announced an Enough
Rush campaign, which will formally kick off in mid-May. So, it certainly
seems that individuals and organizations will keep working toward
accountability.
Fourth, Limbaugh continues to make things worse for his intersecting
business interests and affiliates. He continues to refuse to issue a full
apology to Sandra Fluke, let alone even acknowledge the full scale of his
attacks. He's taken to publicly attacking former advertisers lately.
And, finally, he continues the same recklessness that put his show in
this position in the first place.
pact on the long-term marketability of Limbaugh's show. That said,
perhaps Cumulus has done a better job of managing their ad traffic and
mitigating the damage associated with continually running ads in error.
Third, perhaps Cumulus is operating under the assumption that individuals
and organizations will stop engaging on this issue. This is a false
assumption. We continue to see evidence of individuals across the country
digging in, organizing and contacting their local advertisers.
Additionally, the National Organization for Women announced an Enough
Rush campaign, which will formally kick off in mid-May. So, it certainly
seems that individuals and organizations will keep working toward
accountability.
Fourth, Limbaugh continues to make things worse for his intersecting
business interests and affiliates. He continues to refuse to issue a full
apology to Sandra Fluke, let alone even acknowledge the full scale of his
attacks. He's taken to publicly attacking former advertisers lately.
And, finally, he continues the same recklessness that put his show in
this position in the first place.
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