REPORT: Cumulus Plans To Drop Rush Limbaugh From 40 Stations
Still Losing Advertisers, Limbaugh Remains Bad For BusinessJuly 29, 2013 11:28 AM EDT ››› ANGELO CARUSONE
Politico reports that Cumulus Media plans on dropping Rush Limbaugh's show at the end of the year.
Cumulus has reportedly decided not to renew Sean Hannity's contract either.
Cumulus carries Limbaugh and Hannity's shows on more than 40 of its stations, including Limbaugh's longtime flagship WABC in New York as well as stations in big markets like Chicago, Washington, D.C., and Dallas.
Limbaugh's show has been plagued with woes ever since advertisers began fleeing in the wake of Limbaugh's multi-day attack on then-law student Sandra Fluke; the majority of national advertisers are now boycotting Limbaugh's show. In fact, the backlash from advertisers has been so strong that it has spilled over, injuring digital streaming advertising as well as other similar programs (Sean Hannity's, for example).
The Fallout Continues
Advertisers big and small continue to flee Limbaugh's show. In just the last few weeks alone, several recognizable companies have taken action regarding their ads and Rush Limbaugh...
After a CVS ad appeared during Limbaugh's show, CVS advised that it won't happen again, explaining: "The Rush Limbaugh show is not a program on which we typically advertise & a recent commercial was aired on this program in error."
Upon learning its ads were running during Limbaugh's show, Disney On Ice promptly removed them, stating: "The advertisements you are referring to have been pulled and should no longer be airing during Rush Limbaugh's show."
Citing Limbaugh's indecent content, fast food chain Bojangles also removed ads. The apologetic chain noted that it didn't purchase the ads directly but as part of a package, adding: "A number of our loyal guests have told us they were offended by some of the content on the program in question. We have looked into that content, and as a result we have taken the steps necessary to ensure our ads do not run on this program indefinitely."
AAMCO went so far as to make an exception to its policy of leaving advertising decisions in the hands of locally owned franchisees in order to remove ads from Limbaugh's show.
Advertisers have been taking action similiar to the aforementioned examples for more than a year, which accounts for the scope and scale of the financial damage.
"The Facts Are Indisputable."
A few days before the May 2013 investors call, a "source close to" Limbaugh's show attempted to soften the blow by denying that Limbaugh was having any negative effect on advertiser sales and warned that Limbaugh would walk if Cumulus continued to blame him. After announcing $2.4M in quarterly losses, Lew Dickey rebutted the assertion that Limbaugh wasn't hurting ad sales, stating: "The facts are indisputable regarding the impact certain things have had on ad dollars."
Cumulus isn't the only radio company reporting financial losses associated with Limbaugh's show either; other radio companies have also reported significant losses directly attributable to either Limbaugh's show or the intensifying advertiser fallout.
Noam Pattiz, CEO of Courtside Entertainment, best summarized the industry wide effect, 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."
Indeed. During an interview with Bloomberg TV back in February, Dickey seemed to confirm Pattiz's assessment and signal the possibility of a shakeup, saying: "We're sort of seeing a shift in spoken-word radio from political-based talk over to sports." Dickey was sure to note that sports radio is popular with advertisers.
Still Bad For Business
For his part, Limbaugh has done little to reassure wary business interests that it's safe to go back in the water. To the contrary, he gives advertisers daily cause for concern by filling his airtime with the same bigotry, deceit and chicanery that have come to define his brand.
In April, after spending a year dismissing the massive advertiser losses as a couple of french fries that weren't hurting anyone at all, Limbaugh acknowledged that he was having a problem. But instead of accepting any responsibility, he lashed out and blamed his woes on a conspiracy perpetuated "liberal feminists" in the media buying industry. (I imagine this didn't go over well at the next ad sales meeting).
In the days following the verdict in the George Zimmerman trial, Limbaugh vividly illustrated his volatility when he gleefully announced that he can now say "'nigga' with an A'" because "it's not racist." Limbaugh would argue that he was innocently commenting on an interview that Trayvon Martin's friend Rachel Jeantel had conducted with CNN. But given his odious track record of racially charged attacks, it seems Limbaugh felt like he had an opportunity to finally say the n-word on air with impunity. After all, he has been tiptoeing toward that point for some time. Regardless of the reasoning, the fact that he went there reinforces the concern that he hasn't really done anything to address the recklessness that created this mess to begin with.
Aside from Limbaugh's recklessness, the consequences his show has experienced are due in large part to hundreds of independent organizers, like the Flush Rush and the #StopRush communities. Their participation matters and is having a tremendous effect.
Whether Cumulus ultimately drops Rush Limbaugh remains to be seen, but one thing is irrefutable: Rush Limbaugh has proven to be bad for business. In the past, Limbaugh's renewal and an increase in subscriber fees would have been almost a sure thing, but not anymore. And, with good reason.