Question-and-Answer Session
Operator
(Operator Instructions)
Farid Suleman
Well, I think we've really glad covered everything on the call so unless there are any questions operator?
Operator
Yes sir, hold on, one moment please. Your first question comes from the line of Marci Ryvicker with Wachovia.
Marci Ryvicker - Wachovia
Hi thank you for taking the questions. I have a couple, firstly can you give us some color on the Paul Harvey and Reach Media contracts that you talked about in the press release. Secondly you mentioned $20 million of cost cuts, can you talk about where those are coming from. Then lastly any comments on how Q3 is using casing, typically are you seeing August weaker than where July finished and where September is trending?
Farid Suleman
Thank you Marci. The Paul Harvey revenues have been trending down. Paul Harvey has been off for a number of months. He has not been well, the good news is he has come back and we have done more shows now and so we would expect some of the revenues to start coming back.
With respect to the Reach Media contract, this was a contract that we had inherited when we did the ABC deal. The contract when we acquired them, the revenues were not where we would expect them to be and were heading down, it's not a big growth area for us. We have one more year left under the contract and it is very likely we will not renew that contract. In fact it is a forgone conclusion that we will not renew that contract. So we have one more year of left of that.
We are developing our own shows to really monetize this and these shows are profitable and we would extend that even more. We've Michael Baisden, we have the Big Boys, we have Doug Banks and our team working with Judy on this particularly are really focused on expanding this so that we have our own platform going forward.
As far as pacing is concerned; I will tell you one thing, this sounds like a recurring theme but business is breaking later and later. In July when we entered the month, we were probably facing double-digits behind and then we did not finish double-digits, we finished single-digits behind. We would expect August to be similar and September right now is just, it seems so far away that, I meaning the pacing is clearly in the high mid-single digits behind. But we would expect that to start coming in obviously there are no guarantees what would happen but business is breaking lately.
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