Rush signs big, and shows value of Radio.

Clear Channel learns it’s lesson from Stern, and signs Rush Limbaugh through 2016 to the tune of $400 million dollars. Why?

When Howard Stern signed his half a billion dollar deal with Sirius 4 years ago, the radio industry said they would be fine. Then he left, leaving his affiliates (around 40) scrambling to replace him. He was a ratings and revenue giant. David Lee Roth failed in the East. A jock named Rover failed in the Midwest. Adam Carolla has held on in the West, but has not seen even a small taste of Stern’s power. The stations who ran him were decimated. Many thought his listeners would find other shows, but they didn’t. They followed him to Sirius or XM, or they bought an iPod.

Rush Limbaugh is on over 600 stations. Like Stern, he is a cultural icon, a ratings and revenue giant, and the best in his genre of radio. There isn’t a better talk show host than Rush. Agree or disagree with his politics or views, you can’t argue with his style.

What if Rush left terrestrial for Satellite? He’d destroy the entire AM band. That would mean 600 stations that carry Rush, would instantly cease to have the revenue to exist. What would that do to the industry’s profits? In their minds, $400 million is a small price to pay to keep him!

As a person who aspires to one day take over the Golden microphone, I want Rush on radio as long as God loan’s him that talent. 🙂

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Chris Spangle is the publisher and editor of We Are Libertarians, a news site and podcast that covers national and Indiana politics from the libertarian perspective. Spangle previously worked in marketing for the Englehart Group on behalf of the Advocates for Self-Government. He also served as the Executive Director of the Libertarian Party of Indiana and producer of the Abdul in the Morning Show. He now works as the web director of a nationally syndicated morning show.

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