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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Entertainment > Article Home Business & Finance News U.S. Politics International Technology Entertainment Film Music People Television Arts Industry Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Clouds on horizon for "American Idol" juggernaut? Sun May 17, 2009 1:11pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Alex Dobuzinskis LOS ANGELES (Reuters Life!) - "American Idol" reaches its climax this week, still ruling the roost on U.S. television after eight seasons, but the battle of the songsters faces declining audiences and limits to its viewer-driven format. The finale showdown on Tuesday pits musical theater star Adam Lambert, whom Entertainment Weekly magazine called "the most exciting 'American Idol' contestant in years," against college student Kris Allen, a favorite among teenage girls. What started as a cheesy summer show in 2002 has mushroomed into a cultural phenomenon and an estimated $1 billion-plus brand spanning everything from ice-cream and trading cards to an attraction at Walt Disney World Resort. "As a reality show, it's unique in that regard," said Brad Adgate, a vice president at advertising buyer Horizon Media. "Idol" has partnerships with phone company AT&T for fan voting, with iTunes for contestant song downloads, and record company RCA and its sister labels, where Kelly Clarkson, Carrie Underwood and other past winners have cut albums. But clouds are gathering on the horizon. Co-producer 19 Entertainment reported its revenue from "American Idol" declined $4.1 million to $24.7 million in the first quarter of 2009 compared to the same period in 2008, as the recession dented sponsorship deals. The show, which pits aspiring singers in a series of competitions focused on a musical theme each week, has seen a 7 percent viewership drop this season on the Fox network, part of Rupert Murdoch's News Corp media conglomerate. Fox officials believe the show has a winning formula that could still rule U.S. television for years, even if viewership declines substantially below the current 26.3 million viewers an episode. It is the most-watched TV show in the United States. Despite a tough advertising environment, the cost of an average 30-second commercial on the finale will be in line with last year's $1.4 million average, advertising experts said. Last year, "Idol" generated a total of $903 million in commercial ad revenue for Fox, not including product placements, according to TNS Media Intelligence. Robert Sillerman, chairman and CEO of CKX Inc, the parent company of 19 Entertainment, said plans were afoot to extend the brand, including an Internet product to allow people to play the role of talent judges. "People have accepted that it is part of American culture, and the deals that we're talking about are long-term," Sillerman said in an interview. NETWORK CHALLENGERS Yet rival TV networks have sensed a chance to compete with "Idol" this season where previously they steered away. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: New Tom Hanks thriller fails to crack "Code" Also on Reuters Much to prove for new U.S. commander in Afghanistan Clouds on horizon for ''American Idol'' juggernaut? No bloom yet in U.S.-Cuba ties after April overtures More Entertainment News New Tom Hanks thriller fails to crack "Code" Ben Stiller stars at Smithsonian in Museum sequel Johnny Hallyday seeks Vengeance in Cannes Norway wins the 54th Eurovision Song Contest | Video Africans tell their own stories at NY film festival More Entertainment News... Related News FACTBOX: "American Idol" finalists Adam Lambert, Kris Allen 1:07pm EDT FACTBOX: "American Idol" still most-watched U.S. TV show 1:07pm EDT Editor's Choice Slideshow A selection of our best photos from the past 24 hours. 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