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View Diary: Radio industry convulsing: more Clear Channel layoffs; Cumulus sharpens axe; more Limbaugh damage (75 comments)

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  •  a couple of other points... (11+ / 0-)

    You're right, network ad money goes to Premiere, who obviously uses that to pay Rush.  Radio stations/other networks who run his show do pay a fee in addition to giving up commercial inventory for those network ads.  There aren't many syndicated shows you actually have to pay a fee for; most of it is straight barter (you run the network ads, you get rights to the show) and with regards to the Saturday show, stations willingly give that up for a "best of" show to fill time on the cheap.  Most talk stations go to a brokered system on the weekends where they sell time in varying increments (half hour, hour, two hours, etc.) because weekends are pretty much a wasteland and any dime you can squeeze out of it from whatever nut has cash in hand and wants to pretend to be a talk show host is a dime you otherwise might not have made.  Sadly, for however expensive Rush is, it's usually cheaper than filling it with a local host (who would likely get creamed in the ratings by Rush anyway) and if you've got a talk station and can center it around Rush, you'll probably be profitable.  Unless, of course, you're a Clear Channel station and most of your income goes to cover the massive debt they've accrued.

    I really enjoy your diaries, btw...this is my first comment on DailyKos in almost 2 years.  I was lucky I guessed my password after only a few tries.  And I appreciate you including Uncle Nasty in this diary...I had the privilege of working with him at BPI for a couple of years.

    •  thanks very much! (3+ / 0-)
      Recommended by:
      Cronesense, elwior, nancelot

      I learned a couple of things from your comment. Very much appreciated. Some members of my family must have listened to Uncle Nasty, since they've chatted about his show being cancelled.

      Follow me on Twitter: @denverunionguy

      by Richard Myers on Mon Dec 10, 2012 at 07:26:37 PM PST

      [ Parent ]

    •  "He went broke slowly, then quickly" (4+ / 0-)
      Recommended by:
      eyesoars, elwior, NoMoreLies, nancelot

      I think that is the old F. Scott Fitzgerald line. I hope it applies here, with Rush going broke quickly, and then completely.

      •  I wonder if your comment about 2013 (0+ / 0-)

        means Rush might leave the public airways next year?

        •  Probably not. (1+ / 0-)
          Recommended by:
          lr85211

          It isn't my comment, it is radio industry analyst Holland Cooke's comment. It refers to the expectation that Rush will lose about 40 radio stations next year when the contracts end. Some of these are the largest stations, in the largest markets. Thus, Rush will probably take a hit that may cut his revenues by a double digit percentage.

          Of course, Rush has a contract in force (for now) which means that he will get his $38 million a year, and Clear Channel will take the hit. Clear Channel is at least 16 billion in debt (some put the figure as high as $21 billion in debt) and will have extreme difficulty managing the loss. Should be interesting to watch and see what happens.

          Follow me on Twitter: @denverunionguy

          by Richard Myers on Tue Dec 11, 2012 at 10:36:41 AM PST

          [ Parent ]

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