Posted on 05/12/2004 6:58:39 PM PDT by 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."
It just occurred to me that
"A Liberal wll look at the half-full glass and sue you to top it off."
Note to Air(head) America. Keep wasting that good Soros money, he can afford it! I wonder what they would do if the RNC offered to buy some airtime? Of course that would never happen. We would only reach about 400 people (200 in Frisco, 198 in New York, and those 2 in Liberal, Kansas).
I heard that GM pulled their adds due to the hate speach.....Bubbye!!!
My date in the pool is July 1 - but I won't mind if you win!
Nah.. he's too cheap. Besides, that would only buy them one more hour of their seditious show.
Prediction: Err Amerika will be gone BEFORE the dims convention is stolen by SHillary!
"Serious errors in business judgment account for Air America's problems, rather than its slate of programing, say various radio industry insiders."
Actually, this should read: Serious errors in business judgment like, its slate of programing, account for Err America's problems.
A last gasp, wheezing attempt to put lipstick on a pig.
LOL, onyx, you find some cute ones!!
Ryndee Carney, GM's manager of marketing communications, said the ads were wrongly picked up from an earlier deal with WLIB. She said the station was ordered to "cease and desist" yesterday, and added: "GM will not advertise on any Air America affiliates."
http://www.nydailynews.com/news/col/story/192671p-166266c.html
It appears that left wingers are incapable of managing a business that survives without massive government financial aid and the removal of competition.
LOL!
THE AIR AMERICA DEBACLE SO FAR:
(1) failure to pay for health insurance while deducting it from AA staff's paychecks.....which could entail criminality
(2) possibly neglecting to pay the IRS withholding deducted from paychecks.....which could entail criminality
(3) bounced paychecks (were they kiting?)
(4) laid-off staff
(5) closing advertising sales offices
(6) firing two top officers
(7) losing two most important affiliate stations,
It's biggest problem is airing tedious and sophomoric hate-America programming. The company may now have to return to the hands of its founders who are Democrat donors.
THE AIR AMERICA DEBACLE SO FAR:
(1) failure to pay for health insurance while deducting it from AA staff's paychecks.....which could entail criminality
(2) possibly neglecting to pay the IRS withholding deducted from paychecks.....which could entail criminality
(3) bounced paychecks (were they kiting?)
(4) laid-off staff
(5) closing advertising sales offices
(6) firing two top officers
(7) losing two most important affiliate stations
(Sniffle) Gosh, Gramps, liberals are (sob) so tolerant and compassionate (bawl). Some crass conservatives might say that AA pocketed that money and used it for liberal fun stuff like buying condoms, abortions, valium and vodka and maybe cases of purple Kool-Ade. But I Am Positive AA did not pocket the money (sniffle) No way. AA sent the money to the needy, to those who need it most (sob) ........the DNC.
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