Published: Wednesday, July 2, 2008 at 10:50 a.m.
Last Modified: Wednesday, July 2, 2008 at 10:55 a.m.
Striking a deal estimated to be worth $400 million through 2016, conservative talk radio host Rush Limbaugh has renewed his contract with Clear Channel Communications and its syndication subsidiary Premiere Radio Networks.
The contract renewal was announced Wednesday by the companies, and the financial details were provided by Limbaugh in an interview. Limbaugh said the new contract would pay him about $38 million a year for eight years. He also said he would receive a $100 million signing bonus.
The deal, which comes a month shy of the 20th anniversary of ?The Rush Limbaugh Show,? reiterates Limbaugh?s position as the nation?s leading purveyor of political talk radio. His new contract is believed to be the most expensive in radio since 2004, when Sirius Satellite Radio paid Howard Stern $100 million a year for five years. That deal, however, also covered the staff, production and studio costs for Stern?s show.
?First and foremost I'm a businessman,? Limbaugh said. ?My first goal is to attract the largest possible audience so I can charge confiscatory ad rates. I happen to have great entertainment skills, but that enables me to sell airtime.?
Limbaugh reaches an audience of nearly 20 million listeners. His program is syndicated on about 600 radio stations nationwide and the contract renewal will assure that ?The Rush Limbaugh Show? continues for several years to come.
Limbaugh?s existing contract, which was worth $285 million over a nine-year period, was set to expire next year.
Broadcasters of Rush?s quality come along once in a lifetime,? John Hogan, the chief executive of Clear Channel Radio, said Wednesday in a statement. ?We?re privileged to continue our relationship which is unprecedented in the history of our industry.?
Suffering from sluggish advertising sales and a consumer base that has embraced iPods and other forms of media, the terrestrial radio industry relies on a bench of heavy-hitting stars, such as Limbaugh, to attract audiences.
?The terrestrial radio industry must provide the best possible programming, or it will not survive in the face of the competition on the Internet and from other new technologies,? said Michael Harrison, editor of the radio industry publication Talkers Magazine.
?The industry has to make sure it has the major league stars in broadcasting; therefore, it makes sense that the most money and the longest contract would go to the biggest star in radio today, and that's Rush.?
Last Modified: Wednesday, July 2, 2008 at 10:55 a.m.
Striking a deal estimated to be worth $400 million through 2016, conservative talk radio host Rush Limbaugh has renewed his contract with Clear Channel Communications and its syndication subsidiary Premiere Radio Networks.
The contract renewal was announced Wednesday by the companies, and the financial details were provided by Limbaugh in an interview. Limbaugh said the new contract would pay him about $38 million a year for eight years. He also said he would receive a $100 million signing bonus.
The deal, which comes a month shy of the 20th anniversary of ?The Rush Limbaugh Show,? reiterates Limbaugh?s position as the nation?s leading purveyor of political talk radio. His new contract is believed to be the most expensive in radio since 2004, when Sirius Satellite Radio paid Howard Stern $100 million a year for five years. That deal, however, also covered the staff, production and studio costs for Stern?s show.
?First and foremost I'm a businessman,? Limbaugh said. ?My first goal is to attract the largest possible audience so I can charge confiscatory ad rates. I happen to have great entertainment skills, but that enables me to sell airtime.?
Limbaugh reaches an audience of nearly 20 million listeners. His program is syndicated on about 600 radio stations nationwide and the contract renewal will assure that ?The Rush Limbaugh Show? continues for several years to come.
Limbaugh?s existing contract, which was worth $285 million over a nine-year period, was set to expire next year.
Broadcasters of Rush?s quality come along once in a lifetime,? John Hogan, the chief executive of Clear Channel Radio, said Wednesday in a statement. ?We?re privileged to continue our relationship which is unprecedented in the history of our industry.?
Suffering from sluggish advertising sales and a consumer base that has embraced iPods and other forms of media, the terrestrial radio industry relies on a bench of heavy-hitting stars, such as Limbaugh, to attract audiences.
?The terrestrial radio industry must provide the best possible programming, or it will not survive in the face of the competition on the Internet and from other new technologies,? said Michael Harrison, editor of the radio industry publication Talkers Magazine.
?The industry has to make sure it has the major league stars in broadcasting; therefore, it makes sense that the most money and the longest contract would go to the biggest star in radio today, and that's Rush.?
