His 2008 contract with Clear Channel's Premiere Radio Networks lasts through 2016 and pays him $38 million a year. (He also got a $100 million signing bonus.)
Rush doesn't lose a penny if advertisers bolt. But Clear Channel has been in a money crunch since at least 2009. While just this week it bought itself four more years when investors gobbled up $2.2 billion in subsidiary Clear Channel Communications, Inc. bonds, it still has $1.3 billion in interest payments due this year and "must still convince investors it can handle $12.3 billion of 2016 maturities."
Rush Limbaugh is not Clear Channel's cash cow. CC Media Holdings, Inc's.revenues for 2011 were $6.16 billion. It seems a primary focus of the conglomerate is digital media services and the relaunch of "I Heart Radio." Maybe that's not an app you want on your iPad and iPod. Easy enough to remove. It also entered "stategic partnerships" with "Facebook, Zynga, Microsoft/Xbox, Toyota, Ford, Vizio, HP and Motorola." It acquired "Thumbplay." It expanded its digital networks to Sweden and the U.K.
Besides radio and digital music, Clear Channel's other big business is digital billboards (advertising) here and abroad:
Americas outdoor revenues rose $47 million, or 4%, compared to 2010, fueled by growth across bulletin, airport and shelter displays, and particularly digital displays, due to increased capacity and rates. International outdoor revenues were up $159 million, or 11%, compared to 2010, resulting mainly from higher street furniture revenues across various markets.
What happens if advertisers stop buying ad space on its billboards, because their customers say they will stop buying their products so long as they see those products on Clear Channel billboards?
Seems to me, if you want Limbaugh gone, it's Clear Channel and companies that do business with it that need to be targeted, not advertisers of Limbaugh's show. He's a small flash in the pan.
I've never listened to Rush Limbaugh on the radio, although he's listened to me. I have no idea why people pay so much attention to what he says. Even if Clear Channel canned his show, they'd still have to pay his $38 million a year salary through 2016, so he'd laugh all the way to the bank. Why not just ignore him?
Update: Also pulling their ads from Rush Limbaugh: Citrix; LegalZoom. Not all the companies whose names are floating around are current advertisers. Among those who say they don't advertise on Limbaugh's show: Oreck, Lending Tree; E-Harmony and Dominos Pizza.
Carbonite seems to be procrastinating. Its response:
I have scheduled a face-to-face meeting next week with Limbaugh during which I will impress upon him that his comments were offensive to many of our customers and employees alike.