Spenny stood in the middle of the street, in costume, and sang Kenny's song.
Kenny made a song that the children had to sing at the concert in this episode. During this humiliation, Spenny sings that same song, dressed as a child.
Kenny called Spenny's band, and informed the band that the show was cancelled using a fake message created from voice clips from the Kenny vs. Spenny editing studios.
25th Nov 2003 / Season 1 Episode 02
Kenny's strategy was to win the hearts of the judges by hiring a children's choir. Spenny formed a rock band, held auditions for band members and wrote a song for the band to play. Kenny called Spenny's band, and informed the band that the show was cancelled using a fake message created from voice clips from the Kenny vs. Spenny editing studios. Kenny won unanimously.
The giant lollipop and blonde wig Spenny wears during the humiliation in Who Can Put On The Better Concert? he then voluntarily decides to put on in the First To Laugh Loses episode in an attempt to make Kenny laugh. Perhaps he realized how much the costume made Kenny laugh, failing to realize it was funny due to it being a humiliation in the concert episode.
Judge competitions have a judge, or several judges, who decide on who wins the competition.