Urbin Report

Sunday, June 13, 2004

Air America has quitely abandoned their failed business model.:

Two months after its ballyhooed launch, Air America finally has some encouraging ratings to show but no tested business plan. Almost all of the top executives have left or been pushed out. The network has developed programs but failed to find stations to air them. Promises of imminent replacement affiliates were quietly dropped. Now, those few executives who remain from the start-up have done an about-face. Rather than lease airtime on stations and keep ad money for themselves, Air America Radio is adopting the traditional approach to the business: soliciting deals with station groups to carry shows in exchange for shared advertising revenue. The switch has put the management team in the awkward position of courting the industry, the same people who think that Air America shunned them at the beginning.