Wikipedia’s set of AAR’s local affiliate marketers includes 84 r / c, of which 47 are in the very best 100 U.S. After adjusting the list of affiliate marketers (see below), we viewed the ratings data for some 40 channels in 38 radio marketplaces. 992,308 people for an Average Quarter Hour (AQH). AAR’s New York City affiliate WLIB makes up about nearly one-fifth (19.3%) of its estimated audience in the very best 100 U.S. Interesting tidbit: If we applied a 1.0 ranking share to AAR’s remaining markets, we’d only add somewhere between 60-70,000 more listeners to the full total above!
Money is largely made in the air broadcast business through advertising, and advertising dollars are divvied out regarding to not simply how big is a radio station’s audience, but the demographics of who’s actually tuning in. We are able to assume that AAR’s core listening audience reflects just about the same demographic grouping from market to advertise, so the financial impact of losing a broadcast affiliate will therefore be directly proportionate to the relative size of its audience.
Update (14 March 2006): In the evaluation above, we only viewed the primary markets for WLIB – we have additional analysis that takes a closer look at WLIB’s bigger footprint. If AAR is in the broadcast business for the intended purpose of making money in the broadcast business, AAR’s older leadership should concentrate first upon obtaining a broadcast store in the brand new York City market. The rest of the strategy AAR are required to follow would be dictated by its overall business health.
AAR must focus upon getting the biggest return in revenue for each dollar it spends in which to stay business. For example, development whose cost to create significantly outweighs the relative amount of revenue it earns to the network will need to be eliminated or substantially revamped. AAR could, in the interim, today continue operating as it does, however the impact is always to increase its effective cash burn rate significantly, establishing it upon a course toward personal bankruptcy, faster. Unless, of course, AAR is carrying on in the broadcast business for some purpose besides that of making money in the broadcast business. If that’s so, their troubles may only be beginning.
We kicked off our group of posts examining Air America Radio viability as a business with this post. We really didn’t think it would go much beyond this! A throw-away post that let us fill up space with some information on where AAR got its financing that we experienced come across in our previous analysis.
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As AAR were working into significant turbulence, we updated our original proper business analysis, finding that what AAR’s management needed to do was to find “white knight” funding or to start making movements to significantly cut its costs. We couldn’t resist applying a list bankrupties lawyer came up with for a faltering company to AAR’s known problems – lucky thing AAR has benefitted from the generosity of multi-millionaires with deep wallets.
Another space-filler post where we just unloaded background information about various associates of AAR’s Board of Directors that we had run into in previous analysis. An intrepid e-mailer let us know that AAR’s flagship affiliate WLIB had a bigger footprint than just the brand new York City market – plus, we find that approximately fifty percent of AAR’s audience is in only five towns.