Air America Show Shuts LA, Chicago Sales Offices; On last legs?

Reuters ^ | May 12, 2004 | Sue Zeidler

[nwrep]

LOS ANGELES (Reuters) - Air America has shut its sales offices in Los Angeles and Chicago and is recasting its business plan, the network's president said on Wednesday as troubles beset the liberal talk show network.

With Air America not broadcasting in those two cities after a financial dispute in April, network president Jon Sinton said, "There's not much sense in having sales offices in cities where you don't control a station."

About 15 to 20 people were laid off in the closing of the sales offices, the latest sign of problems for Air America, launched on March 31 as a liberal alternative to the country's predominantly conservative talk show culture led by right-wing icons like Rush Limbaugh.

Since it started, Chairman Evan Cohen, Vice Chairman Rex Sorensen and Head of Programing David Logan have left while co-founder Mark Walsh has stepped down as chief executive to take a smaller role in the organization.

Sinton said Air America was in "high-level affiliate discussions in Chicago and Los Angeles" and other cities.

Sinton said the company had moved away from its original business model, which was to lease and totally control the radio stations in which its programing ran.

Rather, Sinton said Air America has found success with traditional affiliate relationships, under which it provides about 20 hours of programing per day in many cases in exchange for the ability to sell a certain number of minutes per hour of advertising.

"The business model has changed with our on-air success. The fact that we are moving the needle so quickly with affiliates has surprised us and negated the need for us to control our own stations," Sinton said.

After its launch, a dispute with business partner Multicultural Radio Broadcasting led to its programing being yanked from the air in Chicago and Los Angeles.

Air America, which is said to have more than $30 million in financing, is operating in about nine markets, and on satellite radio and the Internet. Its Web site said that 15 more stations will be coming in May.

"We're always looking for new financing, but the investors we have are committed and we would we like to raise more money," said Sinton, who said that certain people on the board with long-term radio experience have recently taken over key decision-making roles in a departure from the past.

Serious errors in business judgment account for Air America's problems, rather than its slate of programing, say various radio industry insiders.

"It makes you wonder why everybody is leaving the company," said Michael Harrison, editor for Talkers, a magazine about Talk Shows.

"I think the concept of liberal radio is great, but they went about it wrong. They first insisted that stations take an entire line-up. The odds of getting enough stations to take a whole line-up are so impossible."

[Recovering_Democrat]

BWA HA HA HA HA HA HA!

[DB]

I love watching rich liberals burn their money on stupid ideas.

[Happy2BMe]

Thanks for the ping!

[magua]

yes Hewlett-Packard is stupid enough.once one of the most admired companies in america now sleeps and promotes little al.

[weegee]

LOL! And Rush is still going strong, in his fifteenth year.

And they said he wouldn't have anything to talk about with Clinton out of office.

[lainde]

schadenfreude ping!

[weegee]

'ERR'America almost out lasted Dona-WHO for life on the air talking liberal nonsense.

Hmmmm.

Maybe it WAS another Donna-who program.

[FreedomPoster]

Yes, "all of the above" seems the likely answer on this one.

[devolve]

JUST TRUST KERRY


     _{CUT & RUN 2}

[MeekOneGOP]

ROFL !!! Good one, Sloth ! Thanks.

[Poohbah]

Air America has shut its sales offices in Los Angeles and Chicago and is recasting its business plan

New business plan: try to keep Randi Rhodes from going to jail for advocating assassination of the President...

[MeekOneGOP]

I had May 31st in the pool. Looking good.

haha! I hope that's about right. I had October 31st. But the sooner the better, imho !

Another Victory for the VRWC Neanderthals !

[Poohbah]

He who laughs last, laughs BEST!!!!!!!

In reality, he who laughs last didn't get the joke. (c8

[BombHollywood]

"..The fact that we are moving the needle so quickly with affiliates..."

Would that be the same type of needle they use in the execution chamber at Leavenworth?

[hchutch]

They'd better hire a good lawyer....

Wait, they ain't got the money. THAT means public defender...

[AFPhys]

"The business model has changed with our on-air success. The fact that we are moving the needle so quickly with affiliates has surprised us and negated the need for us to control our own stations," Sinton said.

I am reminded that a needle is able to move at least two ways. I wonder which way the "affiliate needle" is rapidly moving...

I am also amused at the meaning of the word "success" as used in this article. I guess it is no wonder at all that with such "success" they would have to reform the business model.

[zip]

The business model has changed with our on-air success. The fact that we are moving the needle so quickly with affiliates has surprised us and negated the need for us to control our own stations," Sinton said.

SPIN, SPIN, SPIN. "..our on-air success." meaning what? That the dimocratic judge bailed their rears out of the refusal to pay problems. Maybe someone will inform them that they have to honor their financial committments. Nah, they just have to go to the courts and have them negate any contract. Disgusting!

[zip]

I had never noticed the "deer in the highlights" surprized stare of these twins before. What an eye opener! (pun intended)

[Lockbar]

LOL Green Mile! First time I've seen that one. Too funny.

[kevkrom]

I had May 15th... at this point, it looks like I might have been just a tiny bit too optimistic.