Commercial Radio Stations Beg for Cash
Last updated: April 20, 2009 - 7:34am
With radio-advertising revenue down 9% last year and on track for a dismal 2009, some commercial stations are borrowing a tactic from public radio: asking listeners for donations. Until lately, the practice has been limited to quirky local stations with low profiles and eccentric owners. Now, however, Air America Radio LLC is considering putting out the begging bowl. The for-profit liberal-talk radio network, whose financial problems included a 2006 bankruptcy filing, may soon launch a membership program, with top donors getting access to Air America talent and tickets to special events. The phenomenon is part of a much broader blurring of the line between the private and public sectors, as banks, car makers and other corporations accept federal bailout money and the associated government oversight. Meanwhile National Public Radio stations have been stepping up recruitment of ad-sales professionals to drum up corporate sponsorships. NPR isn't pleased about the new competition.
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