DAVE BEATS CONAN IN WEEK 2
By MICHAEL STARR

  • NOW it's a race again. David Letterman topped newcomer Conan O'Brien Monday night, thanks at least in part to a visit from ratings magnet Howard Stern.

    The strong showing comes at an opportune time for Letterman, 62, who's reportedly negotiating a two-year contract extension that will take him through 2012 and nearly 20 years as host of "The Late Show."

    It was also a shot across the bow at O'Brien, now in his second week of hosting NBC's "Tonight Show" -- late-night's perennial 11:35 p.m. front-runner under former host Jay Leno. O'Brien began strongly last week but his numbers dropped each successive night -- with last Friday's "Tonight" notching the show's lowest Friday numbers in six months.

    Letterman maintained a steady pace, averaging a 3.1 to O'Brien's 4.7, according to last week's Nielsens. Letterman's contract extension, meanwhile, will likely come with a late-night discount. CBS is expected to cut the licensing fee it pays to Letterman's Worldwide Pants production company, which produces "Late Show."

    "I'd be stunned if the licensing fee wasn't cut, since every show at CBS is being [financially] cut," says one industry insider. That means Letterman, who reportedly earns $31 million a year, isn't immune to the industry's belt-tightening as networks trim the fat and slash costs in a bleak economic landscape.

    Still, NBC has a relative bargain in O'Brien, 46, even factoring in whatever hefty raise he might have received for succeeding Leno on "Tonight." O'Brien was reportedly earning $8 million a year to host "Late Night" -- far from the $25-to-$30 million a year Leno was pulling down to host "Tonight." It is not known what NBC is paying O'Brien under a new deal for the "Tonight" show.

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