Why Rush Limbaugh‘s Radio Network May Want Him Off The Air
Posted on Thursday, May 09, 2013 12:12:12 PM by SeekAndFind
Limbaugh and Cumulus must renegotiate their contract terms by the end of the year, so it’s not surprising that they’re jockeying for leverage.
But a source tells us that Cumulus has less to lose in this battle than most people think, and may even gain financially from Limbaugh’s departure.
First, the back story: Cumulus CEO Lew Dickey recently told investors that the ad boycott of Limbaugh’s show — after Rush called a Georgetown college student a “slut” on air because she favored contraception coverage in healthcare — may have cost him up to $5.5 million in sales.
Another source in Cumulus just leaked to Radio Ink that 48 out of 50 of its advertisers had “no Rush” instructions on their media placements.
Limbaugh fired back, saying that Dickey is blaming him for his own sales failings. He’s threatened to pull his show from Cumulus, which has a reported 15 million-person audience and $363 million in ad sales running on it.
Why would Dickey risk all that cash? Why not just re-sign Limbaugh and keep the business?
Our source says that if Limbaugh left, Cumulus would regain control of a huge chunk of its on-air ad inventory, time that currently belongs to Limbaugh. In that scenario, Cumulus’ total sales dollars would actually go up as long as the replacement show — Mike Huckabee — held at least 50% of Rush’s audience. Our source says:
(Excerpt) Read more at businessinsider.com …