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."

[Lockbar]

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

This is the needle that is most appropriate to represent Err America's future:

[Lockbar]

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

This is the needle that is most appropriate to represent Err America's future:

[Lockbar]

Sorry about that! I like the BS Meter soooo much I posted it twice!

[marty60]

Good riddance, maybe he will shut his ugly face now.

[Lockbar]

LOL. Franken and Donna-who, typical liberal "Duuuhhhh" expressions.

[CIB-173RDABN]

The liberals don't get it. They see Rush, and think it was handed to him.

Rush had many years in radio before he became the Rush we know in Sacramento. I listened to rush for about three years while he was local (and he was much more fun then, but that is another story).

He got his chance to go national, but there was a risk. First, he wasn't getting paid. Do any of you remember the weekend RUSH TO EXCELLENT talks he used to do on weekends just after he went national. That was were he made money to pay his bills.

Second, the New York station that carried him for national did not think he was going to make it, and as part of the deal to use their studios he had to do a three hour live show locally for free.

Third, I don't think he was charging the stations that ran his show anything (that is he was providing the content for free, and giving them so many seconds of commercial time to sell locally, while his plan was to make money selling commercials nationally).

So in a true conservative fashion, he put his money where his mouth was, and took a gamble with his money, and time and effort, and the rest is, as they say is history.

When the full story comes out about Air America, I think we will find that all of the "talent" are pulling down a full salary and at some inflated rate.)

[NotJustAnotherPrettyFace]

That strip can be found here.

[NotJustAnotherPrettyFace]

LOL - Go, Baghdad Bob!

[exile]

Muhhaaaahaahaaaahaaa. (my sides hurt)

[Steely Tom]

Thanks for that information, CIB.

(steely)

[hattend]

Randi Rhodes.... never heard of her. Sounds like a washed-up porn star. She does appear to have been ridden hard..

Hmmm...couldn't be a porn star with a butt like Hillary's

Oops, she just might BE a porn star...watch the hands, Billy Jeff.

[CFC__VRWC]

When the full story comes out about Air America, I think we will find that all of the "talent" are pulling down a full salary and at some inflated rate.)

Actually, there's a legitimate question here - Err America supposedly had $30 million in "seed money" to start with, and wasn't it part of their pitch that they had enough money and a plan to withstand a couple of non-profitable years? Yet a month after they grunted and squeezed this thing into the toilet bowl, they're bouncing affiliate checks, stiffing their employees and shutting down sales offices. Where did all that money go so quickly? Kind of like Howard Dean being broke after NH, after he had supposedly raised $40 million.

I fully expect that when this festering turd is finally flushed, all the blame for its demise will be laid at the feet of the "Bush White House", for supposedly pressuring the sponsors into bailing out and for turning the FCC loose to "censor" them. Makes me wonder if Randi Rhodes' tirade about assassinating the President wasn't planned all along, to provoke a Secret Service visit and bolster Err America's case that the Administration put them out of business to "stifle dissent."

[cupcakes]

I wasn't in the pool, but I want dibs on May 22nd. I'm going to be induced that day to birth my second son(third child). Nothing would make me happier than to be able to write that Air America tanked the very day he was born. Almost like good triumphing over evil;-)

[Max7]

Will someone out there in FReeperland please clarify something for me? Is Air America the station that carried on it a new liberal talk show host (his name escapes me) who was interviewed on T.V. by Katie Couric? It wasn't that long ago, and I do remember Today was making a big deal out of it, talking it up, etc. etc. Does anyone remember? Thanks.

[zip]

Randi Rhodes.... never heard of her. Sounds like a washed-up used up porn star. She does appear to have been ridden hard.. and put away wet.

[VisualizeSmallerGovernment]

Max7-

I don't watch the Today Show, but I think you're talking about Ed Shultz, who is a "liberal" talk show host from South Dakota whose schtick is that he used to be a "conservative" talk show host from South Dakota.

Ed Shultz was launched "nationally" on 12 radio stations a few months back, BEFORE the debut of Air America. As I understand it, most of his audience is on XM satellite radio as the 12 "stations" mostly have smaller wattages than a hair dryer.

However, Ed Shultz is apparently doing things the way he should be doing it- ie actually paying the bills with revenue from actual sponsors.

Here is an article which talks about how Al Franken is sucking up Ed Shultz' oxygen:

http://southdakotapolitics.blogs.com/south_dakota_politics/ed_schultz_watch/

[bfree]

Yep. Katie backs another loser!! What a track record that hag has.

[VisualizeSmallerGovernment]

BTW, Alan Colmes launched a nationally syndicated talk radio show when Air America was still in the planning stage. But it didn't get any attention from the Establishment media because Alan Colmes works for FOX, and acknowledging his existence would give lie to the idea that FOX is nothing but conservatives.

The Alan Colmes show went off the air for a while, but it's back now. I only ran across it a few times, but it's a hundred times better than Air America, and holds a much better chance of being on the air a year from now.

[sausageseller]

With no extended unemployment benefits thanks to his Buddy JFK! LOL!!!

[Ditto]

How about a book cover. Al Franken is a Big Fat Flop!