On its first quarter earnings call with investors, Cumulus Media CEO Lew Dickey reported a $2.4 million dollar decline in revenue associated with syndicated talk (which is a polite way of referencing fallout from the Rush Limbaugh's loss of advertisers without calling Limbaugh out by name). Dickey has reported millions in losses associated with Limbaugh in previous quarters as well.
Anticipating this report, a "source close to" Rush Limbaugh's show began making the rounds insisting that Limbaugh is not to blame for the losses, while indicating that Limbaugh is considering walking away from Cumulus, which currently carries his show on 40 of its stations.
Asked to address the Limbaugh issue during today's earnings call, Dickey flatly rejected the notion that Limbaugh is blameless, explaining: "We've had a tough go of it the last year. The facts are indisputable regarding the impact certain things have had on ad dollars."
Indeed. As I explained yesterday, this Limbaugh source's contention doesn't stand up scrutiny:
In fact, Limbaugh has become so toxic that he's hurting other conservative talk shows. At a Talkers forum last year, Norm Pattiz, CEO of Courtside Entertainment, summed up the destructive effect Limbaugh has had on the entire industry, noting that a "tremendous chunk of advertising revenue was wiped out in terms of support for national talk radio programs." Pattiz added that "the movement in talk radio to some degree is moving away from conservative talk radio and into other genres."
Limbaugh has done nothing to signal to advertisers that he's not going to put them in a damaging situation, like he did to so many of his advertisers last year when he engaged in a three-day rant against Sandra Fluke. Instead, he's continued with same bigotry and recklessness that forced advertisers to walk away in the first place.
Limbaugh is just as volatile as ever. It's why he's having so much trouble filling his ad space. And, this volatility is why Rush Limbaugh remains bad for business.
Aside from Limbaugh's recklessness, the consequences his show has experienced is due in large part to scores of independent organizers, like the Flush Rush and the #StopRush community. Their participation matters and is having a tremendous effect.
Currently, Cumulus Media carries Limbaugh's show on 40 of its stations, including Limbaugh's flagship WABC in New York as well as stations in Chicago, Washington DC and Dallas. If Limbaugh and Cumulus part ways, it would represent a significant reduction in Limbaugh's overall footprint and serve as yet another reminder that Limbaugh's brand is bad for business.
Limbaugh doesn't appreciate how Cumulus' CEO keeps telling investors that the radio host is hurting ad sales and costing the company millions. So, the weekend before Cumulus' first quarter investor meeting, "a source close to" Limbaugh's show went public with word that Limbaugh will walk if Cumulus' CEO continues to speak about the host's negative impact on business.
Indeed. If I were Limbaugh, I wouldn't want the CEO of one of my major affiliates consistently informing the business community that my show is causing millions of dollars in losses every quarter.
This Limbaugh source argues that Cumulus' problems begin and end with Cumulus and insists that Limbaugh's show is not causing any issues in the revenue department. But, reality and Limbaugh's own words demonstrate otherwise.
Cumulus isn't the only radio company reporting significant losses attributable to Limbaugh. Dial Global has also attributed millions in losses to Limbaugh. Many others in the industry report negative consequences resulting from Limbaugh's recklessness. Consequently, this Limbaugh source's contention that Cumulus' advertising problems have nothing to do with Limbaugh falls apart when we look at the rest of the industry. What would this source say in response to the ills faced by other companies in connection to Limbaugh's show? That it's all their fault too?
Additionally, Mediaite reports that "the vast majority of national advertisers now refuse to air their ads during Rush Limbaugh's show." This is consistent with what industry observers have been saying for months as well as my own experience.
Further, Limbaugh himself recently complained about his advertising troubles. Although, Limbaugh blames his advertising woes on mainstream media buyers "trying to harm" him, warning that they "are young women fresh out of college, liberal feminists who hate conservatism."
So, on the one hand, we have multiple radio companies reporting losses directly attributable to Limbaugh's show as well as Limbaugh himself complaining about media buyers. On the other hand, we have an unnamed source close to Limbaugh's show denying reality about Limbaugh's advertiser woes and attacking one of the host's biggest affiliates.
At this point, it doesn't really matter who you believe. The fact that Limbaugh's affiliates are consistently reporting losses and that Limbaugh is now attacking them is evidence of the one thing that has become undeniable: Rush Limbaugh is bad for business.
Onward we go...
Glenn Beck is engaging in a bit of revisionist history concerning his Fox News exit. At an April 27 event at New York University, Beck portrayed his departure as self-initiated and suggested that Fox CEO Roger Ailes pleaded with him to stay, explaining:
"If you stay in it too long, you become Norma Desmond. I remember feeling, 'If you do not leave now, you won't leave with your soul intact.'"
"At the end, when we were leaving, it was a long process. Roger said to me, 'You're not going to leave.' And I said, 'I am.' And he said, 'Nobody does,' meaning leave television....And I said, 'I'm fortunate because I haven't been in it that long.' I knew what this big, huge Fox empire brought to the table, and I had to leave before I became too enamored of that."
A Fox News spokesperson issued a sharp rebuke contradicting Beck's claim, instead citing Glenn Beck's advertiser losses as the major cause of Beck's exit, saying:
"Glenn Beck wasn't trying to save his soul, he was trying to save his ass. Advertisers fled his show and even Glenn knows what that means in our industry. Yet, we still tried to give him a soft landing. Guess no good deed goes unpunished."
Indeed. Following a series of grassroots efforts beginning in July 2009, around the time Beck accused President Obama of being a "racist," advertisers began fleeing his Fox News show. A Media Matters study revealed that the number of paid advertisements during Glenn Beck's show plummeted and never recovered as a result of those grassroots efforts:
Advertiser rates for Glenn Beck's Fox News program suffered as well. According to an analysis of industry data, the same ad, from the same advertiser cost between three and six times more to run on other comparable Fox News programs than it did to run on Beck's program:
While I was active in the StopBeck effort, detractors and even Beck himself would dismiss the effects of the advertiser losses. I long maintained that the losses were in fact costing Fox News money and were severely limiting the viability of Beck's program. And, now Fox News has all but confirmed it.
It's been one year since Rush Limbaugh's invective-filled tirade against then-Georgetown Law student Sandra Fluke. With hundreds of advertisers and millions of dollars lost, the business of right-wing radio is suffering, but Rush Limbaugh continues to act as if it were business as usual, which is why Limbaugh is still bad for business.
On February 29, 2012, Rush Limbaugh initiated a three-day smear campaign against Sandra Fluke, launching 46 personal attacks against her. This moment and Limbaugh's subsequent refusal to apologize for, or even acknowledge, all but two of those attacks put the spotlight on the right-wing talk business model that Limbaugh helped construct.
During the following weeks, headlines tracked in near real-time the names of advertisers exiting Limbaugh's show as pundits and natterers speculated about Limbaugh's future. As so often happens, the buzz faded and the news cycle rolled on. But the consequences didn't fade, they intensified. This is due in large part to scores of independent organizers, like the Flush Rush and the #StopRush community.
Rush Limbaugh's recklessness damaged the radio industry and the business of conservative talk.
When advertisers began fleeing from his program, Limbaugh dismissed the losses as akin to losing a "couple of French fries" and insisted that "nobody is losing any money here." This position seemed less tenable after Limbaugh employed the services of a crisis manager to handle the fallout, and the right-wing talker's protestations were proven false once financial reports started rolling in.
Yesterday, Cumulus Media, a major affiliate of Rush Limbaugh's show reported millions of dollars in losses attributable Limbaugh's advertiser troubles.
During a call with investors Cumulus CEO Lew Dickey acknowledged Limbaugh's "drag" on business while being careful not to mention Limbaugh by name:
On Thursday, speaking to investors again, Dickey said that, though his profits were up in his latest quarter, his revenues were down thanks to ten out of the 570 stations he owns. These stations, he said, were mostly "news/talk" formats in major media markets.
Dickey chalked up the sluggish performance -- the top three stations cost him $5.5 million, he said -- in part to "some extraordinary issues," such as "the boycott that we saw from some remarks in a talk radio show." That, he said, had "impacted us." (emphasis added)
Dickey made news when Cumulus last reported earnings in May when he said that the Limbaugh advertiser efforts lost his company millions of dollars in the first and second quarters, but indicated that things would be back to normal in June. Limbaugh's defenders heralded Dickey's projection as proof that the efforts to hold Rush Limbaugh accountable had failed. Back then, I analyzed the report and explained why Dickey's prediction would likely prove inaccurate.
As it turns out, my analysis was correct. Things did not return to normal in June. On yesterday's call, Dickey informed investors that he anticipated the drag on business to continue for at least another six months to a year.
Dickey has good reason to anticipate a continued drag.
First, Limbaugh's advertiser troubles are far from over.
Second, Limbaugh continues to engage in the same kinds of vitriol and reckless attacks that put his intersecting business interests and affiliates in this position in the first place, like his renewed attacks on Sandra Fluke or a recent statement that "feminism was established" so "unattractive women" could have "easier access to the mainstream." This continued recklessness signals to advertisers that Limbaugh remains volatile. For many advertisers, this volatility is what keeps them away. They look at Limbaugh's long record of vitriol, they see the damange to businsess it can unpredictably create sometimes, they recognize that he continues to engage in similar conduct and they rightfully conclude that the risk just isn't worth it.
Bottom line: Rush Limbaugh continues to demonstrate that he's bad for business.
And, onward we go...
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."
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.
Following a series of increasingly hostile public exchanges between Fox News and Glenn Beck's camp, Beck's "transition" off of Fox was announced on April 6. Fox recently confirmed that Beck's final show will take place on June 30.
Glenn Beck's Fox News exit is the result of a decline in revenue, ratings and relevance.
More than 300 advertisers excluded their ads from Glenn Beck's Fox News program since late July 2009 when he called President Obama a "racist" who has a "deep-seated hatred for white people." In February 2010, the UK broadcast of Glenn Beck's show began running without any commercials due to advertiser losses abroad.
Subsequent to news of Beck's departure, The New York Times reported that Fox News saw "the refusal of hundreds Fox advertisers" to place ads on Beck as an issue. This issue was recently highlighted when a Fox News spokeswoman, commenting on Fox's decision to preempt Beck's show for a sex scandal special, reportedly quipped that "at least we will be able to sell the special."
A financial analysis of Glenn Beck's advertiser losses illustrates two points:
The number of paid advertisements on Glenn Beck's Fox News show dramatically declined once advertisers began boycotting it in August 2009. Sustained pressure on advertisers ensured that Beck's show never recovered. Consequently, Glenn Beck's show consistently fell short of other comparable Fox News shows as well as shows of direct competitors:
Source: Industry data obtained from CMAG and analyzed by Media Matters.
Further, based on estimated costs from industry experts CMAG, a Media Matters analysis revealed that the same ad from the same advertiser cost substantially less on Glenn Beck than it does on other comparable Fox News shows:
Following a series of increasingly hostile public exchanges, Glenn Beck's "transition" off of Fox News was announced back in April. Fox recently confirmed that Beck's final show will take place on June 30.
More than 300 advertisers excluded their ads from Glenn Beck's Fox News program since late July 2009 when he called President Obama a "racist" who has a "deep-seated hatred for white people." Subsequent to news of Beck's departure, The New York Times reported that Fox News saw "the refusal of hundreds Fox advertisers" to place ads on Beck as an issue.
This Friday, Fox News is preempting Beck's 5pm show to air a special focused on political sex scandals hosted by Greta Van Susteren. Deadline has more (emphasis added):
The move comes on the day Beck announced the September relaunch of his show on the Web as part of live streaming video network GBTV which will charge viewers monthly subscription as well as seek advertisers. Asked about the timing of Glenn Beck's preemption, Fox News spokeswoman denied any correlation but said, "At least we will be able to sell the special," a reference to the mass exodus of advertisers from Beck's show over his controversial remarks.
For additional information, take a look at this Media Matters report that illustrates the cost of Glenn Beck's advertiser losses.
On June 1, 2011, Fox News released its official iPad application. The application is free for download and is currently financially supported by a sole sponsor, ExxonMobil.
Mashable's Ben Parr, who spoke with Jeremy Steinberg, Fox News VP of digital media ad sales and business development, provides some additional information:
Users will also notice something else about the app: the prominent placement of ExxonMobil advertising throughout the app. Exxon is the exclusive launch partner for Fox News's iPad app. "We decided we wanted to work with one sponsor," Steinberg said, explaining that there are always question marks surrounding a launch, so Fox News wanted a partner comfortable with that. He said Exxon, which is in the midst of a new branding campaign, thought the app was a perfect platform for broadcasting its message.
Given Fox News' long history of deliberately propagating climate science misinformation, it's fitting that Exxon reportedly believes Fox's new app provides a perfect platform for disseminating its message.
On June 14, 2010, Premiere Radio Networks announced that Glenn Beck's radio program "hit a broadcasting milestone of 400 affiliates." Since then, Glenn Beck's website boasts that his show is "heard on over 400 stations:"
Well, it's time for Glenn Beck to update his website and marketing materials.
According to industry data obtained by Media Matters, Glenn Beck's radio program is now short of its heralded "over 400" affiliate status. Asked to comment, Radio Business Reporter's Carl Marucci echoed this finding, stating, "our best gauge right now is also shy of 400." Premiere Radio Networks did not respond to requests for comment.
This should come as no surprise. Since the beginning of 2011, seven radio stations have dropped Glenn Beck's show.
Buckley radio dropped Beck from five of its stations - WOR in New York City and four in Connecticut. Philadelphia's WPHT and Madison's WTDY also replaced Beck. Kansas City's KMBZ moved Glenn Beck from his coveted morning slot to a significantly less desirable late-evening slot.
Further, due to Jewish Funds for Justice's terrific work, five New York City radio stations have already committed to keeping Glenn Beck off the air there.
Forbes contributor Rick Ungar explains the financial significance of Beck losing radio affiliates - especially a NYC station:
While the radio show can survive the loss of the smaller markets in the Buckley group, no radio program can long survive the loss of New York as being shut-out of the nation's largest market makes selling national advertising exceptionally difficult if not completely impossible.
This is particularly true when you add in the loss of affiliates in major markets such as Philadelphia and the show's getting the boot out of the key morning drive slot in Kansas City.
Although much attention has been given to the dramatic decline of Glenn Beck's sponsor-dry Fox News show, this significant drop in radio support reminds us that Beck's decline isn't limited to just television.
The verdict: Glenn Beck is bad for business, whether it be television or radio.
UPDATE: Several outlets have called into question the veracity of the data included in this post. We compiled our information from two separate sources. First, on March 25, Radio Business Report - a radio industry publication - published a report indicating that Beck had fallen below 400 stations. Second, we purchased industry data from PrecisionTrak - considered to be the industry leader in compiling radio station information. An analysis of the PrecisionTrak data corroborated the RBR report. If either RBR or PrecisionTrak update their data, we will change this post accordingly. Additionally, if we receive comment or clarification on our report from Premiere Radio Networks - which we asked for prior to publishing this item - we will update our website.