Posted by chicagomedia.org on July 21, 2008 at 09:39:31:
Clear Channel, Citadel Team Up
Big Radio Networks To Carry Hannity In Joint Agreement
In a novel deal, two of the nation's biggest radio companies are teaming together to syndicate one of the nation's biggest radio stars.
Conservative political commentator Sean Hannity, whose talk show is second only to Rush Limbaugh's program, will be distributed through both Citadel Broadcasting Corp.'s ABC Networks, his current radio home, and Clear Channel Communications Inc.'s Premiere Radio Networks. ABC will continue syndicating the show to Citadel-owned stations. Starting in December, Clear Channel will syndicate the show everywhere else.
"It's an unusual deal, but it's a deal for the times," says Farid Suleman, chairman and chief executive of Citadel. For Citadel, it was important to hang on to a superstar talent like Mr. Hannity at a time when consumers have many more audio-entertainment choices than they used to. "It hopefully sets the stage for more deals like that, sharing with another party to try to limit the risks."
Starting in 2009, Premiere will control the bulk of network advertising -- big national sponsors -- for the show. Mr. Hannity will stay on the big Citadel stations, where he currently airs in markets like New York, Los Angeles, Chicago and San Francisco.
The companies didn't disclose financial terms, but a person familiar with the matter says Mr. Hannity was offered in the region of $100 million over five years. On top of that, Mr. Hannity will participate in profits from the show. The figure represents a significant premium over Mr. Hannity's current compensation.
Charlie Rahilly, Premiere's president, said the company sees an opportunity to create more revenue from digital services and advertising, largely because Mr. Hannity's audience is a loyal one. The business of live endorsements in particular "has an intimacy, has a connection, has a depth of shared experience" that advertisers are willing to pay a premium for, says Mr. Rahilly.
Premiere recently signed an eight-year, $400 million deal with Mr. Limbaugh, whose weekly audience is estimated at 20 million listeners. Mr. Hannity, whose show originates on Citadel's WABC in New York and airs on around 500 stations, has an audience of about 13 million people, according to Premiere. Others familiar with the matter put the number at closer to 11 million.
Mr. Hannity will continue to co-host "Hannity and Colmes," an evening television show on Fox News, which is owned by News Corp., also the owner of The Wall Street Journal.
(WSJ)