Lyric Jeans, an apparel company inspired by music and lyrics (the real things, not the Hugh Grant romantic comedy) has inked a licensing agreement with FremantleMedia, co-producer and licensor of American Idol. According to the press release, the lyric-inspired clothing line will initially target juniors and girls and then expand into other departments, including children's.

The president of Lyric, available for trading only on an over-the-counter basis, noted that "American Idol is the most powerful and iconic music brand in popular culture today and the perfect tie-in for our creative concept ... we couldn't have dreamt of a better partner."

Current offerings from the company are available online, in specialty boutiques, and at Saks Fifth Avenue (NYSE: SKS). Some threads include T-shirts inspired by artists such as Janis Joplin, The Beatles, and Marvin Gaye. I'm not sure what confuses me more ... how Taylor Hicks fits into this esteemed lineup, or why these T-shirts cost $90. That Lennon/McCartney catalog ain't cheap.

Is it a sign that Idol, a ratings juggernaut for News Corp's (NYSE: NWS) Fox network for the past six seasons, has hit the peak of its success? Jumped the shark, as it were? Just ask the New Kids on the Block or the newly reunited Spice Girls -- once the merchandising reaches extreme levels, the end could be around the corner. Then again, ratings were at a record high last season despite some truly mediocre singers in the mix -- Ryan Seacrest may just have a job forever.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

When you're the undisputed champion, people are always watching for the first hint of vulnerability. The undisputed champion is News Corp.'s (NYSE:NWS) Fox network show, American Idol, and recent Nielsen stats suggest its stranglehold on the American viewership might be loosening.

Last week, an ABC show, Grey's Anatomy, actually managed to sneak into second place for the week, behind AI Wednesday but ahead of AI Tuesday. In the role of up and coming contender for the crown, you might also look at Dancing With The Stars on the Walt Disney Co. (NYSE: DIS) network, which handily won Monday night this week. The finale, won by Apolo Ohno and Julianne Hough, drew a 10.2 rating and a 17 share.

Looking beyond the slight decline in American Idol viewership, however, I see a still-thriving franchise. Part of the decline can be attributed to shrinking television viewership, part to time-shifting via DVD recorders, and part to those who prefer to watch on-line.

American Idol continues to clobber its competitors in the market sector that really matters to advertisers, those 18-49 years of age.

On a more parochial level, stories about AI are among the most read on this blog. I can only conclude we must have a huge News Corp. stockholder following!

Over 100,000 people tried out for American Idol, which kicked off its sixth season Tuesday night on News Corporation's (NYSE: NWS) Fox Network. There's a way you can ride Idol's popularity -- by buying stock in CKX Entertainment (NASDAQ: CKXE). I enjoyed watching Judge Jewel and Shakira-look-alike, Perla Menses, in Minneapolis, but I'll skip the stock.

MSNBC estimates that Idol is a $2.5 billion franchise with at least five revenue streams, including:

• Text messaging -- In 2006, 64 million votes were cast for favored contestants using AT&T Inc.'s (NYSE: T) Cingular cell phones;
• Product placement -- In 2006, advertisers paid 4,086 times to have their products featured on Idol;
• Licensing -- Through Freemantle Media, which owns the licensing rights to Idol, 40 licenses have already been issued, and Freemantle is working on deals for Idol ice cream, Idol Monopoly and an Idol theme park attraction;
• Online ads -- McDonald's Corporation (NYSE: MCD) and MasterCard Inc. (NYSE: MA) are buying advertisements to accompany an online version of Idol that will be streamed over the Internet at the end of the TV broadcast; and
• Written word -- Heart Full of Soul: An Inspirational Memoir About Finding Your Voice and Finding Your Way, by 2006 winner Taylor Hicks is due out on April 3rd. Or you can subscribe to American Idol: The Magazine.

But the public company with the biggest share of the Idol franchise is CKX. CKXE owns the company that produces Idol, 19 Entertainment, as well as the rights to the names, images and likenesses of Muhammad Ali and Elvis Presley (as well as the operation of Graceland) and a firm that manages Robin Williams, Billy Crystal and Woody Allen.

In what I consider to be a brilliant move by Fox, the television network says that will be airing reruns of popular Fox Network television shows online, at MySpace.com, during the upcoming MLB Baseball playoffs.

The playoffs and resultant World Series end-up preempting several prime-time Fox shows during the October and November timeframes, so instead of forcing customers to watch baseball on their television networks, Fox is giving customers a choice of tuning into reruns of popular Fox shows online.

That, for one, is the a defining example of giving customers choice in the digital age that is integrating television broadcasting with Internet distribution. In fact, the space continues to morph more and more, and the only critical piece missing is an easy, very cheap and popular device for transferring content or even a computer screen's signal into the living room television.

Devices such as the upcoming iTV from Apple will do just that, as already many other gadgets being sold by many companies do. But, so far, the cost is more than it should be (get it down to less than $100). It is also unknown if the interfaces and designs on the current products are as well-designed as Apple's iTV will surely be. If you have one of these devices, comment on it -- I would love to hear how it works.

Will other networks follow Fox's lead and play reruns for a segment of their audience during major sporting events? You know, at least for the wives that have no interest in sports playoffs? Well, that statement comes from the numerous commercials that depict ordinary housewives being bored to tears with sports of all kinds -- a typical marketing stereotype, you know. Seriously though, this move by Fox is really a head-turner. If only more television networks controlled an online empire like Fox does with MySpace.com.