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Cut and paste from HOFFMANIA:
The Lowdown on Air America and Satellite Radio
I should have posted this sooner, but with the fog of this crappy cold, I flaked.
Earlier this week, I had a nice chat with one of the honchos from Sirius Radio who filled me in on the Air America situation.
Now that our wish has come true - Air America emerging as a viable force in talk radio - they've decided to stop supplying XM and Sirius their service for free.
Sirius did in fact make a bid. XM not only outbid Sirius, but as we mentioned before, they offered Air America studio space in their Washington, DC homebase as well as changing the name of the channel from America Left to Air America. Furthermore, XM demanded the deal to be exclusive, meaning they can't offer their programming to other satellite radio services. Air America accepted and Sirius is left with an empty channel effective in July.
As sad as I am that I switched to Sirius so I could hear Air America live fulltime, they can't pass up any chances for money infusion...especially after what they've been through. I'm mourning the fact that in Los Angeles, the local Air America station runs only six hours of live talk - Al Franken and Ed Schultz (not an Air America show) from 9am to 3pm. Morning Sedition, Rhodes, Garofalo, etc. are all delayed by three hours.
When the move is made to XM, Big Ed will still pre-empt Rhodes for the first two hours and (ARGH) Alan Colmes still clogs up the evenings - just as it is now with America Left.
It's a mess, and hopefully in the near future, XM will do what Sirius did for free - give Air America its own channel and throw Big Ed (who still sounds like he doesn't pay attention to his callers) and all the other lib talkers on their own channel. Better yet, cut their losses and put 'em on the Opie and Anthony channel.
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My thoughts..
This sounds pretty close (not totally, but it will do for now) to what I've heard.. so ok, let's take this apart one bit at a time with some analysis/commentary. (I'm going to re-arrange things just a bit also)
Now that our wish has come true - Air America emerging as a viable force in talk radio - they've decided to stop supplying XM and Sirius their service for free.
...they can't pass up any chances for money infusion...especially after what they've been through.
Absolutely nothing wrong with that. It costs money for the studios, costs money for the streaming, costs money for the talent. If you don't move forward, then you die. Nothing wrong with being paid for your work. And like he says, it's been a hard, tough year for AAR and they are at a tipping point of major success. You don't turn down money.
Sirius did in fact make a bid. XM not only outbid Sirius, but as we mentioned before, they offered Air America studio space in their Washington, DC homebase as well as changing the name of the channel from America Left to Air America.
XM does have clout. Free studio space in Washington, right in the THICK of the battlegound for the next 3 years (and beyond). And I've see the XM DC Studios.. they make the Studios at WLIB look like... we'll.. it's like going from a '50s low-power station to the Jetsons. That was a major PERK that Sirius could not even begin to compete against.
Furthermore, XM demanded the deal to be exclusive, meaning they can't offer their programming to other satellite radio services. Air America accepted and Sirius is left with an empty channel effective in July.
OK, so let's see...
Sirius bid "A" XM bid "A+B" and Studio Space, but wants an exclusive.
So AAR could take less money, and LOSE almost 4 million (POTENTIAL listeners)
or
They could get needed financial backing, gain REGIONAL POSITION (studio space in DC), gain facilities they could not begin to affford (studio space in DC) and lose 1.5 million POTENTIAL listeners
Geeze Louise, I don't need an MBA to figure that one out.
If Air America is to survive, they must be a PROFITABLE BUSINESS. If it had gone the other way, then XM people would be screaming, so don't think you're special Sirius folks.
they can't pass up any chances for money infusion...especially after what they've been through.
that bears repeating...
When the move is made to XM, Big Ed will still pre-empt Rhodes for the first two hours and (ARGH) Alan Colmes still clogs up the evenings - just as it is now with America Left.
Well, other information has since come out that we still have Ed, sill lose two hours of Randi and still have Colmes.. but DO get MIKE MALLOY (abiet tape delayed for now).
It's a mess, and hopefully in the near future, XM will do what Sirius did for free - give Air America its own channel and throw Big Ed (who still sounds like he doesn't pay attention to his callers) and all the other lib talkers on their own channel. Better yet, cut their losses and put 'em on the Opie and Anthony channel.
Now, here's were people need to pay attention.... (I'm going into 'informed speculation' mode here)
The 'rebranding' on XM takes place on MAY 1 The 'exclusivity' on XM takes place on JULY 16
AAR is giving people 10 WEEKS WARNING. Me'thinks that is part of the 'give back' AAR got XM to acquiesce to.
Also gives 10 weeks for XM to DO SOME MORE CHANNEL SHUFFLING / CHANNEL ADDITIONS. Channel 168 is open right next to 167 (American Left/AAR).
10 WEEKS to get Scultz and Colmes stuck somewhere...
10 WEEKS for a 'special deal' for people to get XM at a big discount (again I ask, if you could get either a HOME SETUP (like a SkyFi2 + Boombox) or a CAR SETUP (like a SkyFi2 + Car Dock) for the cost of a 1-year prepaid sub ($140) would you? Free equipment for a sub? maybe 1/2 price (or more) discount on equipment? Still leaving you free to recoup some of the cost of your Sirius equipment?
10 WEEKS is an eternity in the radio business.
So HARRASSING people will accomplish nothing... be patient, things WILL change even more between now and July 16th.
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BTW.. the first person that starts spouting the "it's a Clear Channel/Murdoch plot!!!!" please go soak your head moran.. it's been posted time and time and time again that XM/Murdoch HAVE NO CONTROL OF XM. Go search for it, I've posted the documentation and links about 5 times....;
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