I'm not an economist by training and this is not a technical article about economics. But, it doesn't take a genius to see how a principle most of us learned in high school continues to be demonstrated repeatedly in America. To view Air America Media's failure, disregard the politics and just think of it as another a product.
The Product Adds Star Power
Since its inception in 2004, Air America has provided a progressive (liberal) lineup of radio shows and audio content under the umbrella of a network, which was available on a variety of AM, FM, satellite, mobile, and online forms. It began with a flourish featuring some high profile personalities like Al Franken, Janeane Garafalo, Robert F. Kennedy, Jr., Hip-Hop start Chuck D and others like Rachel Maddow and Randi Rhodes. Eventually, the stars left and Air America Radio had to keep itself propped up by what it initially promised: liberal radio programming, sans the glitz of celebrities.
The Product Stumbles
Aside from early administrative and financial problems, Air America struggled. It’s no secret the network started on shaky financial footing when almost immediately the owner of KBLA/Los Angeles and WNTD/Chicago cut the network feed from Air America Radio because the network bounced a payment check. A few months later, it became public knowledge that the first corporate head, Evan Cohen, arranged a questionable loan of $875,000 from New York City's Gloria Wise Boys & Girls Club. Air America was eventually forced to pay it all back – with the final installment handed over earlier this month. By September 2005, it was asking for donations from listeners outright.
Air America Radio was supposed to operate for profit and although it has the right to ask listeners to chip in, it just seems to me if you are going to be a player, you best act like one.
The Product is Judged by the Marketplace
Air America's various shows and programming offerings competed in the marketplace for over 5 years. Listeners had the choice to support it or not by listening. Growing support would have been reflected in ratings. Growing ratings would have dictated higher advertising rates for stations carrying the programming. Higher revenues would have put Air America in more demand. More demand would have allowed it to grow in affiliates and increase profit.
