It’s one thing to incite boycotts, stir the outrage of millions, inspire hate in one of our two genders, even shed advertisers like…well, Rats Leaving The Sinking Ship, but when one man’s big, fat mouth can gas business so badly a top radio company tumbles right off the NASDAQ, you know things have taken a turn.
“Based on our current financial projections, absent additional debt or equity capital from third parties, we anticipate that we will breach our debt leverage and interest coverage covenants for the quarters ended DECEMBER 31st, 2012 and beyond. Such expected non-compliance is a result of several factors. We believe our 2012 results were adversely impacted by, among other things, late cancellations in ad buys (which we believe was a by-product of the election and renewed economic uncertainty), competitive factors, such as a greater diversity of digital ad platforms (into which ad budgets have flowed) and increased competition from our major competitors, and advertisers’ response to controversial statements by a certain nationally syndicated talk radio personality in MARCH 2012.” [Emphasis added.]
Translation: Rush Limbaugh’s Fluke Diatribe and the subsequent exile of advertisers from his show and, it turns out, talk radio in general, ultimately crushed programming star Dial Global…right off the NASDAQ.
While Limbaugh’s show is not affiliated directly with Dial Global (he’s syndicated by Clear Channel), Daily Kos lays out the connection:
The Limbaugh team produce content that is carried, and made available (in radio industry parlance, syndicated) by Clear Channel’s talk radio subsidiary, Premiere Networks….Premiere Networks has contracted with about 40 Cumulus radio stations to carry Limbaugh. Same for other radio networks, such as CBS and Dial Global
Many of us anticipated that the first real fallout from the advertiser boycott would come next year, when Cumulus contracts for the Rush Limbaugh Show expire. We did not anticipate that Dial Global would be the first network to fall because of the advertiser boycott (and the other issues identified by Dial Global).
And fall it did. And while there are clearly other issues contributing to Dial Global’s decline, let’s not forget their own statement of cause included the following – “advertisers’ response to controversial statements by a certain nationally syndicated talk radio personality in MARCH 2012.” Clearly the many grassroots campaigns boycotting advertisers who continued to support Mr. Limbaugh and his particular brand of hate-speak had their impact. Dial Global’s ultimate tumble makes clear that some “trickle-down” theories actually do work.