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5/17/2008 - SV1
(VIAB: down $0.12 to $34.20, Research, Estimates) does not The Show's finances, but analysts estimate that the morning program hauls in roughly $175 million a year in revenues. Factor out costs including the stratospheric $30-plus million take that Stern and his sidekicks get every year, and analysts say the as much as $25 million a year in profits for numbers make all the recent caterwauling over fate at look like much ado about only one thing that rules whether stays or leaves Infinity and that's money," said the publisher of Talkers magazine, which covers talk radio. "If brings in more money than it costs to him, he stays. If it costs money to have than he brings in, he that simple, despite what Stern said last when he at a press conference he hosted that he was "so dangerously close to being forced off breast-baring stunt at the Super show thrust into the political spotlight an epic battle between decency crusaders and First Amendment zealots over Communications Commission responded with an investigation of the incident. At the same time, pre-existing efforts to push federal legislation upping indecency fines gained widespread support within Congress. This week, the FCC dusted off a to require broadcasters to keep recordings of their programs for a limited time, a move that critics said would help regulators broadcasters more , an FCC investigation of a 2003 segment including crude sexual references resulted last in the fine ever leveled against a broadcaster for indecent programming. To end government charges, Clear Channel Communications, which the Stern show, agreed to pay $1.75 meanwhile, is still under investigation for the same broadcast. Last week & Cable Today reported that the FCC would propose a $1.5 million fine, just shy of the $1.7 million that Infinity paid a ago in another dustup over is expected to fight the fine. The company publicly signaled last week plans to stand airing his show in 9 new markets, including a handful where Stern went silent when Clear pulled him off the air. In response, Stern quelled persistent rumors that he would bolt to subscription-based satellite analysts contacted by greeted the news with a yawn, saying they never he would business is a tough business and generates a ton of money," said, the editor of Inside Radio, a daily newsletter whose parent company is owned by Clear: "I don't think ever wants to cut him loose. It would be a nuclear-sized event if they part (CCU: up $0.06 to $35.11, Research, to hold onto were not so clear-cut. Unlike, Clear doesn't own, hence it doesn't make nearly as off the show as its rival. What's more, , like all broadcasters with multiple government licenses, has to tread carefully with as a property is far more expendable to Clear than to (), taking into account the and the politics of dealing say that doesn't face similar pressures to placate regulators. To operate its 39 broadcast television and 185 radio stations, Viacom needs government licenses. The FCC has not been shy lately threatening to revoke licenses as a punishment for analysts said the biggest risk Stern faces are not the dollar the "back-channel, ugly things" that could happen between federal regulators and Viacom lawyers, those risks are unlikely to change even if Democrats reclaim the White House in November. Had run-ins both and far from helpless. For one thing, the First is a powerful defense. For another thing, analysts agree that run-in between Stern and his critics only increase his value. And he's proven adept at leveraging have gone up. I'm sure ad has gone up," said a research analyst with "I'm listening to him and I wasn't listening to him two months ago."