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."

[TomGuy]

They really don't/didn't need to pay for any online personalities. They could have save a lot of money, etc., just by putting a recording on continuous loop and broadcasting it: "Bush is bad, vote liberal."

[Reactionary]

Franken, the googly-eyed moron, always looks surprised.

I'm sure when he'll look even googlier when Arse America finally bites it.

[Dr Snide]

The left is just incapable of telling the truth. Wow, just wow.

[Straight Vermonter]

Air America ...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.

According to another Freeper there is only one station that runs anywhere near the full 20 hours and that is in tiny Plattsburg NY.

Air America, which is said to have more than $30 million in financing

Actually that should be they HAD $30 million. They had to PAY to get their programming on air. It's worth noting that they wanted to control stations to keep there programs on the air since they knew nobody would want their product otherwise.

[Rocky]

"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"

"We're always looking for new financing"

Gee, I wonder if there's any linkage here? First pump up the outlook with unfounding claims, then go after more suckers. All that's missing is that famous disclaimer about past performance not being a guarantee of future success.

[kstewskis]

Shhhhh...here that?

The sounds of crickets?

[John Lenin]

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

Uh huh ...

[Tennessee_Bob]

Last legs?


Slugs have legs??

[goodnesswins]

You need to change that picture....as another freeper today said....it needs to be called what it is..... AIR JaZeera

[searchandrecovery]

"All's going according to plan."

Nice - nothing to see here folks, please just move along.

[samadams2000]

If it wasnt for my Freeper brethern I would go insane. Thank you! Every last one of you.

[Sloth]

[kittymyrib]

Hewlett-Packard is stupid enough to buy commercials on Franken's Fiasco.

[DManA]

This is unbelievable. This guy at the NYDaily News asked GM why they advertised on Air America. GM said it was a mistake and they were going to court to get them stop running their commercials.

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

[Zuben Elgenubi]

Maybe Algore will buy AirheadAmerica. I heard he's putting together a blockbuster media empire.

[samadams2000]

"So its a profit deal???I get it now!!"

[onyx]

LOL!
That's fabulous.

[Smartass]

Ahhhaaaeeeee, beautiful toon.

[nutmeg]

LOL, check out #33!