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Air America Radio bankruptcy raises questions
Wednesday, 18 October 2006 11:34

John North
Editor & Publisher
I was surprised last Friday to learn of the Chapter 11 bankruptcy filing for Air America Radio, the liberal talk-show network built around comedian Al Franken.

The Chapter 11 protection was sought after talks with a creditor reportedly broke down. Happily for its listeners, the network plans to remain on the air while it reorganizes.

In its filing in U.S. bankruptcy court in Manhattan, Air America said it lost about $40.9 million since its launch in March 2004, including $13.1 million so far in 2006.


Air America was founded as a counter-balance to the radio programming of politically conservative shows by nationally syndicated hosts like Rush Limbaugh, Sean Hannity and Michael Savage.


Besides Franken, the New York-based Air America, which claims a paltry 4 million listeners, features Robert Kennedy Jr. and Randi Rhodes. It also airs a radio show from television host Jerry Springer.

The filing was sought by Scott Elberg, who became Air Americaës chief executive last week. He stated that the networkës backers told him last month that they would no longer subsidize its operating losses. He said this prompted Air America to consider a possible sale or liquidation.

The network is seeking court permission to obtain up to $3 million in financing from an entity called Democracy Allies LLC so that it may operate while under Chaptel 11.


As an occasional listener to Air Americaës affiliate in Asheville (880-AM, The Revolution), I wondered if the networkës woes meant that there is insufficient interest among listeners and/or advertisers to support such a venture.


Or could it be that the networkës organizers failed to market the venture properly?


Of course, Limbaugh was quick Friday afternoon on his show to declare that Air America Radioës failure showed that, as with other liberal causes, such phenomenon can exist only on subsidies.


He also said the bankruptcy shows the network, like the liberal movement in general, is spearheaded by arrogant and condescending people who are out of touch with mainstream Americans.


Ultimately, Limbaugh tied the failure to the supposition of Air Americaës liberal founders that they could simply jump into the radio business with no background or training ÇƒÓ and still be successful.


Meanwhile, a liberal colleague of mine suggested that Air America failed because liberals are too nice ÇƒÓ they are not mean enough and, hence, not entertaining enough. Letës face it ÇƒÓ a standoff between Rush and Al Franken is no match. The same could be said for manic Michael Savage and his thundering "Savage Nation."


Generally, I find liberal positions tend to be more intellectual and nuanced and, hence, donët lend themselves to soundbites that go over so well on AM radio with todayës prototypical, short-attention-span listeners.


From my own observation, I think a major problem is that AM radio, which since the 1970s has morphed into talk/news/sports radio, mainly attracts an older, conservative, largely white male audience ÇƒÓ not exactly the prime support base for Air America.


To that end, I believe the founders of Air America erred in thinking they needed to counter-balance right-wing talk radio by setting up their own alternative network, when that is not a stronghold of liberals ÇƒÓ nor will it ever be. The left would be better advised to build on its strengths, such as National Public Radio and other locales on the liberal-friendly FM dial, as well as a number of liberal TV programs, such as "The Daily Show."


Most likely, though, many things can go wrong with a new business that may have nothing to do with the program content ÇƒÓ and much to do with basic business practices.


Still, it is curious that the top creditor is not being revealed in the bankruptcy filing. Inquiring minds might wonder why the benefactor now wants to be shielded.

 



 


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