The Howard Stern effect

The radio business continues to struggle, reflected by CBS Corp.'s third-quarter numbers. Revenue for the company's radio operations fell 6 percent, to $508.1 million, and operating income was down 10 percent, to $210.2 million. Not that it came up in the press release, but there's little question that the loss of Howard Stern this past year has taken its toll on CBS stations. It also might explain why two Spanish-language stations sit atop the L.A. radio market (overall ratings at former Stern home KLSX-FM were down in the latest Arbitron survey).

It's not just CBS - Radio One reported a drop in third-quarter net income, citing the poor performance of its L.A. outlet, KKBT (The Beat). "If our L.A. radio station had performed in line with market industry results, we would have outperformed the radio industry for the quarter," said CEO Alfred C. Liggins. Ouch. Earlier in the week Clear Channel Communications Inc., which is examining whether to sell all or parts of itself and has a major L.A. presence, reported a 9.5 percent drop in third-quarter earnings.