When his announcer Hank Kingsley falls asleep during an interview, late night talk show host Larry Sanders wonders just how committed his sidekick is to the job. After asking his producer, Arthur, to speak with him about the problem, Larry also discovers that Hank owns an expensive home in a neighborhood where he and his wife Jeannie are also looking for a house. Curious as to how he could afford to live in such a high-priced area, he is reminded by Jeannie of all of the commercials that Hank appears in.
Returning the next day to find that Arthur has not met with Hank, Larry decides to speak with Hank directly. Upset that his friend is making so much money, Larry chooses to get back at Hank by asking him to stop using his trademark phrase, "Hey Now" on the show anymore. Meanwhile, when pop superstar Janet Jackson is scheduled to appear, Larry worries that she won't make it from the airport in time for the show.
Though he tries apologizing after being so harsh, Larry only makes matters worse by continuing to complain about Hank's commercials distracting him from their show. But, while waiting for Janet Jackson to arrive, Larry struggles to stretch out an interview with a dog trainer until Hank bails him out with a series of jokes. After their guest star finally appears, Larry apologizes to Hank and, thanking him for helping save the show, is invited to join him for some of his personal appearances.