Glenn Beck Cost Fox Millions and Lost Half His Audience, but News Corp. Stands Behind Him

I suggested a few days ago in this post that the entire reason that Glenn Beck wanted to conduct a March on Washington on the anniversary of MLK’s historic march was to garner ratings.  I further suggested that African-Americans would be better off attending to more pressing issues rather than getting tricked into helping Beck restore his ratings by engaging in any sort of counter protest.  If the NAACP, Urban League and etc desire to be effective, they could start by ignoring Beck’s stunt here.   As it turns out, I wasn’t far off the mark as it now seems that Beck’s ratings are down there in the cellar and he’s cost News Corp millions as a result:

 

Glenn Beck Cost Fox Millions and Lost Half His Audience, but News Corp. Stands Behind Him

By Jim Edwards | Jul 6, 2010

 

Glenn Beck has lost half the TV audience for his Fox News Channel show, and 15 of his 27 current ad slots are taken either by house ads for News Corp. (NWS) properties or non-profit concerns. Taken together, it is likely that Fox has taken a huge financial hit from the advertiser boycott of Beck. More than 100 companies have said they will not advertise on Beck’s show after he said President Obama was “a racist,” and later compared the president to a Nazi.

There are two surprising things here: First, corporate America’s commercials have not slowly trickled back to Beck’s show now that the fuss has died down (the scandal broke nearly a year ago). And second, it’s also a testament to how stubborn the News Corp. management culture is: They just don’t give in, even though at this point standing by Beck must have cost them millions of dollars. Clearly, this is important to them.

On MediaMatters’ current ad roster for Beck:

  • Beck’s show had 27 ad slots in total.
  • Nine were “house” ads for other News properties, and thus did not generate revenue for News.
  • Six were ads for non-profit organizations, and were unlikely to have been sold at full price.

One of the remaining 12 fully paid ads was for Nestle (NESN.VX)’s Purina cat food. Nestle has previously said it supports the boycott and that its ads only appeared on Beck by mistake. That suggests Fox won’t get paid for running the spot; or that Nestle has caved; or — and this would be controversial — Fox is deliberately running ads from big corporations by “mistake” to make Beck look safe for other companies to return.

Such appearances are crucial. For some brands, the “environment” is as important as the gross ratings points. And the current ad environment on Beck is populated by C-list brands such as Zoosk.com, Hydroxatone, and Tax Masters.

At one time, the boycott seemed irrelevant because Beck had such a massive audience for his daytime show, 3 million people. Now he has only about 1.4 million, according to Nielsen. So the show’s financial troubles are compounded: In addition to not selling enough full-price inventory to fill out the show, each individual slot is worth less because it delivers fewer ratings points.

Why does News persist? Although Beck still gets nearly triple the viewers of his competitors, it is not likely that Fox is standing behind him for business reasons. It would be much more lucrative for CEO Rupert Murdoch to demand that Beck apologize and move on. Then Nestle et al. could come back and everything would return to normal. Rather, this is as another case in which News is cutting off its nose to spite its face. Murdoch believes Beck is “right,” and he seems to be insisting that he’s not going to let liberal boycotts or his sympathetic clients push him around.

News has a history of this: It engaged in a suicidal civil war over supermarket advertising that cost the company $500 million, and it still hasn’t settled the last of that litigation. The manager responsible for those losses — News America Marketing CEO and New York Post publisher Paul Carlucci — remains in his position as if he’d done nothing wrong.

http://industry.bnet.com/advertising/10007384/glenn-beck-cost-fox-millions-in-ad-revenue-and-lost-half-his-audience-but-news-corp-stands-behind-him/

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One Response to “Glenn Beck Cost Fox Millions and Lost Half His Audience, but News Corp. Stands Behind Him”
  1. Brother Greg L:

    How is it that Glenn Beck’s advertising is a “clarion call” for the Black community focusing upon our problems?

    I just got finished watching my daily dose of “The Ed Show” and I now have Glenn Beck on. I monitor programs – left and right in order to keep my finger on the pulse of propaganda.

    Alternatively I recently purchased the last edition of “The Source” magazine. It is flush with advertisements from individuals who play up the “Hip Hop Voice Of The Street Pirates”. If the last few artists who were in jail (TI, Lil Wayne, Black Rob, Shyne, Gucci Mane and Mystical) http://www.theboombox.com/2010/03/01/rappers-in-jail/ were to have a public gathering on August 29, 2010 on the steps of the Lincoln Memorial the NAACP and others would not flinch – even as they did not censor their words and had a mixed audience.

    In watching “The Ed Show” with Al Sharpton arguing for illegal immigration and the founding editor of “Huffington Post” arguing the point as to why Obama has lost the “White vote” it is dramatically clear the fools choice that the Black “brain trust” has made in latching our horses to the cart of the “American Political Domain”. The outcome for our people can only be one of compromised integrity.

    When one gets to the point of focusing on their starting position in the football game that Malcolm X had warned us about decades ago rather than focusing upon our own permanent interests – our fate is ultimately sealed.

    I wondered while Shaprton and the Black Civil Rights Pharicees are in Arizona walking with Mexicans to insure that they are not harassed by the police (this is their plan if AZ is successful in court in defending against the lawsuit brought on by the Obama administration) I asked myself “WHO WILL BE GUARDING THE FORT BACK IN THE BLACK COMMUNITY?”

    Do you know the answer Greg L?

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