
A day after General Electric Company's (NYSE: GE) MSNBC stopped simulcasting Imus's radio show, CBS Corp.'s (NYSE: CBS) CBS Radio dropped him as well.
As I posted yesterday, CBS still has the far less polarizing problem of Katie Couric's plagiarizing. But Imus's rapid downfall is consistent with broadcasting's economic model: give away for free content that attracts a big audience and charge corporations a fee to market to those audiences.
CBS's CEO Les Moonves wrapped himself in concern for the challenges facing black women. He said, "There has been much discussion of the effect language like this has on our young people, particularly young women of color trying to make their way in this society."
But as CEO his overriding concern was with keeping his own job -- which means getting CBS's stock price up for Chairman Sumner Redstone. And the Imus controversy caused CBS's economic model to shift rapidly in reverse. Corporate advertisers feared that consumers would stop buying their products if they continued to advertise on Imus's program. So they canceled en masse.
And that loss of advertising made Imus economically unsupportable. The lesson? If other shock jocks on the public airwaves lose their advertisers, they too will see their programs canceled.
Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He owns shares of GE.











Reader Comments (Page 1 of 1)
4-12-2007 @ 11:52PM
GABIROSES said...
Whatis the big deal? Imus made a stupid comment, just words. He apologized. Now certain people want to kill his career? His livlihood. Get over it America. Our freedom of speech is just being slowly taken away. Michael Jackson is a known child offender, he is now being greeted in Los Vegas. OJ wants to write about his crimes. And there is much more. Look into the hip hop songs that are insulting, who is in charge of that?
4-14-2007 @ 6:22PM
Joy Moore said...
I agree w/above, it was a stupid comment. He just
should have been suspended, then fined. Not losing
his job, we like Imus. And personally, all the things he does, both MSNBC & CBS will be sorry. They
should have stood up to Al Sharpton & Jesse Jackson,
they have got things in their past, Jackson fathered
another woman's child. Does anyone remember Sharpton
and a woman by the name of T.Berry? Imus should, and
he should NOT have gone near Sharpton Show. Jesse Jackson and Al Sharpton are trouble makers. Jason
Whitlock was right in everything he said, I believe
it was Tucker's show tonight 4-11-2007. I am sick
at heart at this and some of the people I liked.
Miss Joyce Moore
Mrs. Elizabeth Moore
4-13-2007 @ 2:54AM
John said...
You 2 are missing the point. Don't blame CBS. The advertisers were GONE!
And don't worry about Imus; his career will be fine -- just somewhere else.
4-13-2007 @ 4:53PM
char said...
the man apologized. jesse jackson called the jewish community "hymies", al sharpton organized a vicious rascist attack on a white storeowner that resulted in 4 innocent people being killed. apparently their apologies have been accepted (which my age group remembers) apparently they feel forgveness only extends to themselves. apparently satellite tv and cable are the only defenders of free speech anymore.
4-13-2007 @ 7:19AM
E.Raage said...
No more ,no more What will happen to the DUKE BOYS.Wake up people words are just words .If we cannot become tolerant of a few word we are lost.If we keep listeing to the same black and white voices that grab any issue we are lost.Face it when you can't laugh about yourself your lost.By the way I ive in a upscale mixed hood.Everyone here is saying what a week 3 white boys lose a good deal of their life ,one old white man loses his job .WORDS
4-13-2007 @ 7:23AM
G A Noble said...
What Moonves has failed to realize that Ismus' inappropriate remark is an opportunity to enlist a man of incredible talent in the struggle against racism. I'm sure that Imus in the future, having learned a valuable lesson, will be a force in fighting that evil.
If Moonves or Jesse Jackson had any understanding of the mechanics of prejudice or any real interest in fighting it their course of action would have been entirely different. I would suggest that both men, having missed a great opportunity to do something worthwhile that they both resign.
4-13-2007 @ 7:27AM
Reinhold Puetz said...
So this is a free country ? Freedom of Speech ? Freedom off what ? I got fired for this the same think ,freedom off Speech. Imus dont feel sorry ok . We should send those whow dont like our freedom in U S A .back where thare come from ....all of theme ....
4-13-2007 @ 8:08AM
Grey said...
I will never watch cbs again. The firing of Don Imus was extreme. I am willing to bet if a black host made a derogatory comment towards a white person not a word would have been said. Imus was fired for offending someone. I am firing cbs because I am personally and deeply offended about the firing of don Imus.
4-13-2007 @ 8:24AM
msiegel8 said...
All parties involved in the firing of Don Imus should be ashamed of themselves. Do they realize the good he has done. So he made a stupid comment; he apologized. Frankly, I am disappointed in the black community--which insists on calling themselves African Americans. How many of them were born in Africa or have even been there? Am I, therefore, a European American???
And the so-called reverend Sharpton and Jesse Jackson are ridiculous characters. They are bigoted beyond all hope of restoration as proven by their past actions. The fact that the black community is led by them tells me something about the black community.
I will try to avoid all products made by the companies responsible for this. And if anyone believes that there was any other reason for Imus's dismissal, then you are naive beyond all hope.
4-13-2007 @ 8:48AM
Steve Allen said...
What in the world has happened? The Iman is off the air! I have lost a friend on the air, for a brief time of course. Every morning I was wired to get up just so I can see and listen to the Iman and the great characters on the show, what great laughs!! I mean that their is not another morning show that compares to the entertainment that we have lost. Thanks alot Al & Jesse for your double standard hipocrasy. Now go after your fellow african americans that use the same words and even worse. People like Al & Jesse are why we still have race issues in this country. Imus I accept your apology and forgive you. Thanks for the great memories!!!!
America will hear and see you again!!
4-13-2007 @ 2:25PM
big mike said...
al and jessie are two black thugs without guns looking for a payment jessie git a bud dealship for not putting pressure on them mike
5-02-2007 @ 5:12PM
dawrestle said...
To everyone who thinks that this is a free speech issue let me give you my take. If Imus was standing outside at a podium instead of inside speaking over NBC's airwaves, then we would have a free speach issue. Imus was on the air speaking over NBC's airwaves, and sorry guys but there is NO garauntee free speech while you are speaking over someone else's airwaves.