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Limbaugh fees?

Tom Taylor had this item in his daily email -
Rush Limbaugh’s off in Erie, at Connoisseur Media’s WJET (1400). Ops manager Joe Lang tells the Erie Times News it’s because “Limbaugh’s fee kept going up every year. It was a lot of money.

I'm a civilian and not in the radio biz. What kind of money does Limbaugh demand and get?

Are a lot of syndicated shows able to charge a fee? I had thought most syndicated shows were offered free in exchange for airing the national spots.
 
Most are... Hannity and Limbaugh are not.

I don't get this move, unless he booms in from a market. The station just handed whoever picks up Rush, and we all know someone will, a big boost. He acts as a tentpole for a lot of stations.

This move doesn't make to much sense. If you can't sell Rush with a big profit, you may need to look at your sales staff.
 
Dale Jackson said:
This move doesn't make to much sense. If you can't sell Rush with a big profit, you may need to look at your sales staff.


WRONG.

There are a number of stations, some in pretty big markets, that have for years used Limbaugh as a loss leader.
 
There are a number of stations, some in pretty big markets, that have for years used Limbaugh as a loss leader.
Name them.

Thought so.

There is a reason Rush is almost never dropped is because he brings in the ratings and the bucks.

You are saying there are stations that run his show and have all their local inventory sold out and are still taking a loss on Limbaugh's fee?

Name them.
 
Dale Jackson said:
Name them.


You're so naive.

And no, I won't name them, as I have worked for several of them and have no vested interest whatsoever in giving any indication as to who I am.

Rest assured though, Limbaugh is used as a loss leader at a number of stations for the same reason that milk is used as one at some gas stations.

Wise up.
 
Maybe Holland Cooke can enlighten us on the cost benefit ratio of Limbaugh's show.
 
cm454 said:
Dale Jackson said:
Name them.


You're so naive.

And no, I won't name them, as I have worked for several of them and have no vested interest whatsoever in giving any indication as to who I am.

Rest assured though, Limbaugh is used as a loss leader at a number of stations for the same reason that milk is used as one at some gas stations.

Wise up.
Even IF that were the case and stations were losing money in Rush's timeslpt in order to make money elsewhere, he is still worth it if it strengthens the stations ability to make money.

There is a reason Rush is almost never dropped is because he brings in the ratings and the bucks.
 
"Maybe Holland Cooke can enlighten us on the cost benefit ratio"

Saying "Erie" isn't like saying "Detroit," but this could be one of those canary-in-the-coal-mine moments.

The conversation regarding Rush Limbaugh's Return-on-Investment (ROI) is WELL-underway, at lots of stations.
You'll hear Clear Channel GMs complain least-loudly, if they're smart. But they feel the pain too, because they have to pay.

If you saw Talkers magazine publisher Michael Harrison speak at the NAB Radio Show in Austin (or have seen his session streaming @ www.podjockey.com), you've heard him observe that "Radio can't afford to do radio any more."

Erie is showing us this.

In 2008, Rush Limbaugh and Sean Hannity made deals that radio can't afford.
Sean's was so big that Citadel couldn't afford to do it alone.

But this isn't just a radio problem.
Somebody will also have to pay for Mark Teixeira, whom the Yankees just smothered in do-re-mi.
The Yanks' ROI calculation comes at-a-time-when:
a.) they've got all those new luxury boxes to sell,
b.) so do the Mets, and
c.) executives at big New York firms who buy luxury boxes are on-the-ledge.
So Teixeira = sizzle, and there'll be even MORE visible advertiser logos, and audibly late re-joins.

Somebody has to pay for Rush and Sean, and here's who's paying:

Stations, via:

1. Cash fees, which Limbaugh's handlers have always calculated very carefully. They know -- right-down-to-FICA -- how much a station would have to pay a local host instead.

2. Out-of-program spots, i.e., Rush Morning Update, which is either:
a.) subtracted-from the station's morning inventory (costing them cash); or
b.) added-to the station's morning inventory (costing them tune-out).

3. Additional in-program inventory, which -- although not-subtracted-from station inventory -- adds to the-number-of-spots-we're-asking-listeners-to-sit-through.

4. Weekend re-runs, which costs stations time-more-profitably-allocated to specialty how-to shows which -- PROPERLY PROGRAMMED/PROMOTED/SOLD -- can be:
a.) BIG business ; and
b.) appointment listening.

NO, weekend programming doesn't have to be tear gas.
Even WELL-DONE brokered shows attract a loyal following.

Arguably listeners also have to pay.
OR DO THEY?
There's a fatigue factor to weekend re-runs which, until PPM, was less-measurable.

Two reasons automotive, home improvement, health & fitness, consumer electronics, lawn & gardening, etc. shows do well on the weekend:

1. It's not the same-old-same-old that Talk Radio carped about during-the-week. Enough already.

2. How-to shows can synch-up with what-listeners-are-up-to on the weekend. Home Depot, home improvement.

This has been profitable programming, and seemed logical...until PPM came-along.
Now, we KNOW how important weekend programming is.
The PD of one Great Big Station I know told me "it was like we had shut off the transmitter" when bogus weekend stuff aired.

What's downright sad about what's happening, and no-less-than self-destructive from a perceptual standpoint, is that the-two-biggest-shows-in-radio are now FORCING stations to air re-runs. TOO LATE! Rush is already selling them more-convenient-re-runs, Rush 24/7, which he uses affiliates' air to advertise so relentlessly.

And what a dangerous message to send listeners WHILE some stations are desperate/stupid-enough to be airing those Howard Stern Sirius XM spots that diss radio.

Please note: All-of-the-above is apolitical. I, personally, am agnostic, when it comes to what-Rush-and-Sean are preaching-out so repetitively. Although it was hard not to wince this month when, as Rush was telling us Climate Change is a hoax, it snowed in Las Vegas and Hawaii. But I digress.

I have two playbooks.
If my client station is the Rush Limbaugh affiliate, he's the biggest star on Talk Radio.
If my client station is the Rush Limbaugh competitor, he's the biggest buffoon on Talk Radio.
Rush isn't my client, the station is.
Our goal is making-the-most of:
a.) OUR assets, and
b.) THE COMPETITION'S liabilities.

For years, I have advised -- and written, here and elsewhere -- that "I'd rather play WITH Rush than AGAINST him."
These new fee hikes and cram-downs are testing his ROI.

My experience parallels what-others-have-posted-here: Rush tends to be "a loss leader." At too many stations he's the Mount Everest on the hour-by-hour ratings graph (which mornings SHOULD be), so he's helping these stations' in the rankers from-which transactional business has flowed. But:

a.) That's the business that has dried-up; so stations are focused on "local direct retail."
b.) Rush affiliates tend not to have as much Rush-specific sponsorship business as you might think.

But Rush (whom I don't know, and who refuses to record station promos) and Sean (whom I do know, and who has been EXTREMELY helpful and responsive to me and my clients) are important to me personally, for the same reason they're important to their affiliates. And for the same reason that The Eagles and Barry Manilow were important to me and these-very-same stations back-when-these-stations-were-playing-music, when I was a DJ in the 70s: Rush and Sean are source material.

Prediction: Dave Ramsey will become an-even-BIGGER-star in 2009.
If you've read his Affiliation Agreement, you know why.

It could also be a good year for Dr. Laura.
People are coping.
Not just people-running-radio-stations.

HC
www.HollandCooke.com

PS: Stocking stuffer: http://getonthenet.com/radio-info.pdf
 
Re: "Maybe Holland Cooke can enlighten us on the cost benefit ratio"

Holland Cooke said:
Prediction: Dave Ramsey will become an-even-BIGGER-star in 2009.
If you've read his Affiliation Agreement, you know why.

It could also be a good year for Dr. Laura.
People are coping.

Ok, so clue us folks in who don't get to see the affiliation agreements.

I for one have been observing the Ramsey model from a distance. I'm far from being close to figuring it out, but the affiliation agreement info would provide some great insight.

But the thing that may hurt in him high COL markets is his formula for living is almost impossible for people of modest means, yet in markets where he does well, the COL is generally modest for big city living. (Houston, Dallas, Atlanta, Portland, Nashville).

He was heckled a few years ago when he did a modestly attended live event in NYC shortly after his brief WABC weekend exposure. Also, his "there is no recession" talk throughout the year may have cost him credibility.
 
"Ok, so clue us folks in who don't get to see the affiliation agreements."

Here's paragraph one, which pretty-much sets-the-tone, a-very-different-tone than the relationship between The Rush Limbaugh Show and its affiliates:

Thank you for deciding to include The Dave Ramsey Show as part of your station lineup. Are you looking for a big, detailed contract? They are a pain and quite frankly, we don’t feel like dealing with them. Below you will find a few points that will guide our relationship. Please initial each one and return the contract via fax to Suzanne Simms at 615-372-0573.

1. You like us and we like you and therefore are agreeing to work together. You are going to start airing the program on
__________________________________________________________________from _________________________,
(Station and Frequency) / (Start date) (Time slot)
and agree to air it in that time slot and that time slot only for the duration of the contract. It is non-cancelable for the first 120 days. Should you decide the program needs to be moved or your station needs to become German History Hot Talk or any other format, or you would like to terminate this agreement for any reason then you will need to give us a 90 day written notice. This notice is for the program, not the spots, not the promos, but the whole PROGRAM. No, you just can’t run our spots.


And it's no act.
His team is top-notch, and GREAT to deal with.
For-the-record: Dave is NOT my client, though I recommend him enthusiastically.
HC
 
I don't know about Rush never doing propmos. he's voiced some new ones for WHIO promoting University of Dayton basketball.

What about Dave Ramsey vs. Clark Howard? Clark has all the info (even if the presentation is a bit too laid back) with none of the preachiness. His star is rising because of the CNN Headline deal.
 
del_griffith said:
He was heckled a few years ago when he did a modestly attended live event in NYC shortly after his brief WABC weekend exposure.

Cue "Garden Party" by Rick Nelson.
Possibly too un-hip-for-the-house in Noo Yawk?
THAT crowd -- likely dressed head-to-toe in black -- was probably choking on credit card debt.

I hadn't heard that particular story, but know plenty of others about Dave packing venues elsewhere.
Watching the crowd, you'd think he was Anthony Robbins or Paul McCartney.

gr8oldies said:
What about Dave Ramsey vs. Clark Howard?

Remember the first time you heard either of 'em?
"What-the-HECK is this?" you wondered.
A week later, you were hooked.

Their content is NOT-just the-same-old-same-old.
People seem to HEAR these shows.
And look at their web sites, rich resources, useful stuff, about YOU.
Then look at RushLimbaugh.com

Here's the-station-waiting-to-happen: Not "Jack," but "Dave."
Wisely, The Dave Ramsey Show feeds 24/7, as a convenience to stations.
(Less potential for human or machine error because there's no timeshifting necessary.)

Some station should just take the feed 24/7. Perhaps that unloved AM, sitting-in-the-corner, now airing 3rd tier blah blah blah, with lots of dead air and double audio automation boo-boos. Call it "Dave."

#1 ratings?
Nah. Probably not top 10.
But, instantly, the best profit margin in the cluster.
FREE programming.

Not "broadcasting" in-the-fashion-that many News/Talk/Sports AMs are variety-programmed, like TV stations.
But it'd be Dave-on-Demand, just like you can get online.
This would be the mobile version.
Listeners would "get it."
And Sales SURE would "get it."

I'd recommend this for HD-2, but most receivers in-use are IN radio stations.
 
I guess the Dave Ramsey and Clark Howard popularity sort of mirrors the popularity of the NPR talk / information shows (Car Talk, Talk of the Nation, Science Friday, Michael Feldman's Quiz Program, etc). Maybe finally the general radio audience is finally tiring of the daily political preaching (ranting) that makes up so much of today's talk radio format, especially the Rush/Hannity/Air America types.

I gave up on Beck/Limbaugh/Hannity/Ingraham(these are available in my market) and haven't tuned in to those stations to hear those shows for several months. When wanting talk, informational, or entertaining type programming (Prairie Home Companion) I tune in to NPR (in my market WHYY-FM). I have caught both Ramsey and Howard on weekends (Ramsey on WILM and Howard on WDEL). I'd agree they are a breath of fresh air for commercial talk radio. The other commercial talker who has done quite well is Kim Kommando, in my market on WILM. She manages to make talking about a computer interesting.

So if I had a PPM meter or a diary it would show that a majority of my radio listening time is with WHYY-FM for NPR programming and WRTI (NPR Classical/Jazz) for music. The exception, because of the Christmas Holidays, I also listened to WKDN-FM (Family Radio - also a non-comm) for their beautiful Christmas music this past month. I sometimes will tune in to either WDEL or WILM for local news/weather when getting ready for work in the mornings, but as WHYY-FM also gives the local weather during Morning Edition I find myself tuning to WDEL/WILM for local news less and less.

A year ago, I mostly listened to WILM/WDEL (both AM stations), now I rarely put them on. I'll sometimes put WDEL on for Phillies/Eagles/Westwood One national Sports Monday Night Football also. I'd guess though that 80% of my radio listening is now on non-comm NPR or even sometimes college stations, all FM below 92.1. They offer music, news/talk/information/entertainment that appeals to my ear. I've also gotten used to not hearing all those annoying commericals. I'll gladly send a donation to my NPR stations each year to not have to hear all the annoying ads and am glad for all the corporate underwriting that helps keep NPR programming and music on the air.
 
Re: "Maybe Holland Cooke can enlighten us on the cost benefit ratio"

Holland Cooke said:
NO, weekend programming doesn't have to be tear gas.
Even WELL-DONE brokered shows attract a loyal following.

Holland Cooke said:
Prediction: Dave Ramsey will become an-even-BIGGER-star in 2009.
If you've read his Affiliation Agreement, you know why.

Coincidentally, Dave Ramsey's radio show started off buying time.
 
"Infomercial" isn't a four-letter word.

Late-night cable schlock gives paid longform a bad name.

Radio listeners understand that programming is sponsored.
They don't care if it's sponsored by-the-minute or by-the-hour.
If it's not interesting, they don't care period.

The transmitter is a distribution system.
Do-with-it what-you-will.
Getting-listeners-to-do-something-with-it is the trick.

The transmitter is not MERELY a distribution system.
It's also a brand.
Which is good for the time-renter.
And bad for the station if what-qualified-the-time-renter was merely a-check-that-didn't-bounce.

Smart radio stations are incorporating the Internet in this model.
Small chunks of content on-air, promoting bigger-chunks-of-content (of all sorts, not just audio) online.
 
Late-night cable schlock gives paid longform a bad name.

No... not just cable schlock... in fact, the cable schlock looks downright upright compared to radio... which is where most of the cable trashmeisters started.

Long before Kevin Trudeau was selling his books on TV, he was selling the "Mega Memory" system that led to problems with the Feds on the radio. Weekend radio was a paytoilet on small AM stations by the early 90's. Many hosts have graduated from weekend brokered time to fines and worse. Remember Wade Cook? R.G. Reynolds? The Wall Street Underground? and a host of other radio infomercials that took over weekends. Not to mention the claims that brought firms like Seasilver to the attention of the Federal Trade Commission.

Radio listeners understand that programming is sponsored.
They don't care if it's sponsored by-the-minute or by-the-hour.
If it's not interesting, they don't care period.

Many of them don't know... which is the point. Many of these programs are deceptive. Having them "sold" disarms programming from objecting to things that might skirt the border of legality.


Ideally, weekend programming on talkers would consist of up and coming talent or people with a different "take" on issue-oriented talk. If the format is too boring to do seven days a week, it's probably too narrow and boring to do five days a week. Limbaugh reruns are not ideal, but they're ten times better than "Ask the Mechanic" and a thousand times better than "Super Duper Colon Scrub They Don't Want You to Know About"...
 
"It's GUARANTEED!"

smedge2006 said:
cable schlock looks downright upright compared to radio

Unfortunately, you're right.

I DON'T mean unfortunate-that-you're-right!
I mean too-bad-radio-let-it-get-this-way.

And these Howard Stern-voice Sirius XM spots now airing may be a new low.

smedge2006 said:
Limbaugh reruns are not ideal, but they're ten times better than "Ask the Mechanic"

'Depends on the mechanic.
And I don't just say so because I work for several weekend how-to shows.
There's data.
PROPERLY CAST/EXECUTED/PROMOTED, these shows can BRING new ears to a station.
Ears that the station can then invite to come back weekdays.

If the-first-time-you-saw "The Birdcage" was in a movie theater, you WILL remember the audience laughing when Gene Hackman's character deadpanned, "THAT'S EXACTLY WHAT RUSH LIMBAUGH SAID."

Yes-El Rushbo-IS Talk radio's biggest star.
AND he's a caricature, a punchline.

smedge2006 said:
"Super Duper Colon Scrub"
"It's GUARANTEED!"
(To flush your cume!)
 
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