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."

[UB355]

I had May 31st in the pool. Looking good

[bcoffey]

From the article: "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.

You can't make this stuff up!!

[onyx]

[VisualizeSmallerGovernment]

They had a SALES OFFICE??? Don't you need paid advertisers for those?

[Paul Atreides]

Now, if only the bag, who joked about assassinating W, could be hit by a bus. Just kidding. /sarcasm

[martin_fierro]

[Paul Atreides]

RE: That photo of Frankenwhiney...

A queer in the headlights.

[bigghurtt]

and is recasting its business plan

They had a plan?

It appears they didn't adequately prepare for the occupation (of the airwaves).

[VisualizeSmallerGovernment]

Reading further into the article, I find that not only did Air America have a Sales Office, they allegedly had a business plan as well. Who knew?

Oh, and great tweaking of the business plan. Most successful companies got that way by shutting down the part that sells the product.

[theDentist]

"All's going according to plan."

The Flight of the Err America.

[MegaSilver]

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

Somehow, I doubt that.

[clintonh8r]

Next thing you know, the idiot franken will be announcing that he wants to "spend more time with his family" and "pursue other opportunities." He'll be blaming W for his unemployment. Hey, Al! I feel your pain. (not)

[SAJ]

Check out today's ''Mallard Fillmore'' strip, re Airhead America and Vladimir Ilych Franken. Quite a hoot, imnnho.

[nutmeg]

PERFECT! LOL

[nutmeg]

ping! ;-D

Please FReepmail me if you want on or off my infrequent ‘miscellaneous’ ping list.

[Paul Atreides]

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

[clintonh8r]

Same business plan as Salon's, but without as much initial stupid-capital.

[Land_of_Lincoln_John]

For the two weeks it was on here before the "business model" had to redevelop or whatever that spin was, the quality was bad. Not just what they said, but commercial breaks would appear out of nowhere, music cues, sound effects and the like would regularly misfire.

Take this bad puppy away, and send him to that oh-so-nice farm so he can run all day and night...