Air America Radio will continue to operate as Madison's source of liberal talk radio, but after filing for Chapter 11 bankruptcy in a New York court in October, the station's long-term future remains unclear.
Launched in 2004 to rival traditional conservative talk radio dominance, Air America features the personalities of Al Franken and Ed Schultz as a counter to conservative talk show hosts Mark Belling and Rush Limbaugh.
The station's website described the decision as ""regrettable,"" but said the bankruptcy filing will allow the company to continue offering its complete line-up of programming while it deals with its creditors in the reorganization proceeding.
Local carrier 92.1 The Mic, along with 92 other affiliates nationwide, will continue to carry Air America's programming with the aid of a $900,000 loan from Democracy Allies, an entity formed by current investors in the network.
""I don't think this is a failure of liberal progressive talk, but of business format,"" Madison resident and talk radio enthusiast Christopher Brophy said. ""They need to trim the fat. Other than Al Franken, most of their shows harp on the same subjects and that doesn't appeal to a wider listening base.""
According to court documents, the company lost $8.6 million in 2004, $19.6 million in 2005,and $13.1 million so far in 2006. Headquartered in New York City, Air America produces 19 hours of programming a day that reaches 58 percent of the country.
""One of their main problems is being able to get on stations without heavy corporate backing,"" UW-Madison professor of journalism and mass communications Jack Mitchell said. ""Broadcasting on AM channels is easier and cheaper, but remaining [on] FM in order to attract younger listeners is much more expensive.""
""Obviously the radio is dominated by conservatives and it's going to be really hard for a radio station to stay afloat,"" said Madison resident Brett Berghauer, a courier who listens to the radio at work. ""I think the liberals dominate television news and the liberal radio crowd is probably already listening to NPR.""
According to the The New York Times, Jones Radio Networks, who syndicates Air America in several cities, will work in cooperation with Clear Channel Communications and an advocacy group led by former Clinton administration official John Podesta to start a national competition to identify new radio talent for the station's format.
When asked to comment on the station's financial problems, Limbaugh stated that he was ""not surprised,"" according to The New York Times wire reports. He contended, ""They were not a broadcasting concern to begin with... They went into business to affect elections.""
