If Rob Glaser sees his shadow, AAR gets six more weeks of bankruptcy

[fred flintstone]

An article in a Seattle alternative paper quotes AAR flack Jamie Horn as saying an unnamed buyer has signed a letter of intent and the deal will be completed "any day now." AAR remains vague and secretive, as always.

Meanwhile, the article adds former CEO and bankroller Rob Glaser still refuses to talk (heck, even Evan Cohen was willing to talk) but profiles a long series of management and programming gaffes.

He Wuz Rob-bed
For Seattle's biggest-spending liberal benefactor, bankrupt Air America was a costly flyer.

Deep-pocketed political donor Rob Glaser undertook his biggest-ever political investment in 2004 when he handed over $10 million to prop up lefty talk-show network Air America Radio, giving him 36.7 percent ownership. But while the founder and CEO of Seattle-based RealNetworks Inc. successfully helped fund the 2006 Democratic revolt in Congress, he has been bloodied attempting a similar revolution in progressive talk radio (read more - Rick Anderson-Seattle Weekly)

RealNetworks was originally "Progressive Networks" in the early 90s and its purpose was to stream liberal programming on the Internet. This was when Rush was still growing and the rest had never even thought about going on the radio.

 

[raccoonradio]

oops! didn't see your post. I posted about same article

 

[fred flintstone]

Glad we both thought the article interesting.
I hope people click on either of our links to read it.
Much of it has been reported here before but it's a good summary.
Plus it has some noteworthy new info.

It sounds like Rob screwed the pooch, and he is certainly paying the bill (which he can afford).
What remains unanswered is: How could the guy not see he was in free-fall? Did he try to pull out? There was plenty of warning of trouble but nobody could - or would - make needed changes.

Maybe Rob was a talented techie who happened to be in the right place at the right time to get in on the gound floor of Internet media. No way he wouldn't end up rich. And that obscured that he had no idea how to manage and how to run a business. Real Networks is running on inertia and money still comes in but they are now a minor player and their future is far from certain. Real is to Media what Netscape was to Browsers. What cp/m was to operating systems.

 

[Scribbler]

Yeah, RealNetworks is a sinking ship. Right. From yesterday's Wall Street Journal:

Shares of Rhapsody's parent, RealNetworks, rose more than 40% in 2006, thanks in part to the exploding online-music market.

Rhapsody's 2005 sales hit $97.4 million, while its parent's total revenue was $325.1 million. In the most recently ended third quarter, the company reported earnings of $42.2 million, nearly four times what the company made in the year-earlier quarter.

More wishful thinking by Fred.

 

[fred flintstone]

Yeah, RealNetworks is a sinking ship. Right. From yesterday's Wall Street Journal:

Shares of Rhapsody's parent, RealNetworks, rose more than 40% in 2006, thanks in part to the exploding online-music market.

Rhapsody's 2005 sales hit $97.4 million, while its parent's total revenue was $325.1 million. In the most recently ended third quarter, the company reported earnings of $42.2 million, nearly four times what the company made in the year-earlier quarter.

More wishful thinking by Fred.

Scribbler, why would you want to endorse a company like Real Networks? You seem to suspend all independent and critical judgment when it comes to AAR or anyone involved with it.
I've seen articles in computer magazine about Real Player's bugs, spam and spyware (my anti-spy software agrees about the latter).
I can't remember when the last time was I came across an audio stream (other than AAR, surprise-surprise) in the RA format. Windows Media Player has won that battle and Real Player used to own that category.
OK, so there online sales are doing well. Although, apparently not as well as their top competitors, like iTunes.
Hmmm. Maybe if Steve Jobs had gotten involved in liberal talk radio, things would be VERY different.

 

[Scribbler]

Fred,

Endorse? What are you talking about? I didn't "endorse" anything. I just presented some facts to show that you didn't know what you were talking about when you said that RealNetworks is a "minor player" whose "future is far from certain." Bugs? Yeah, all those bugs in Windows and other Microsoft products have proven that Bill Gates is another failure. Right.

I don't "endorse" either RealNetworks or Air America, but somehow I feel a need to occasionally reply when you engage in what, at times, has seemed like a full-time campaign to bash anything and everything that has to do with Air America (although I see that you've now expanded your focus to take on ABC).

As for my take on Air America, I don't like much of its programming and wish that it had been properly funded and run by professional radio people from the beginning. That didn't happen, but I'd still like to see it succeed and I do listen to Franken, Hartmann, and (occasionally) Politically Direct.

And here's a little more evidence, from wirelessweek.com, that RealNetworks seems to be doing well, despite your complaints:

RealNetworks announced that a number of consumer electronics companies - including Nokia, TiVo, iriver, Logitech, SigmaTel and Telechips - have licensed its Rhapsody DNA technology platform and plan to build support for Rhapsody DNA into products and services shipping in 2007. "These new partnerships will help make the award-winning Rhapsody digital music service accessible virtually anywhere, from your PC to your home stereo to your portable music player," RealNetworks said in a prepared statement.

 

[fred flintstone]

As for my take on Air America, I don't like much of its programming and wish that it had been properly funded and run by professional radio people from the beginning. That didn't happen, but I'd still like to see it succeed and I do listen to Franken, Hartmann, and (occasionally) Politically Direct.

I am entirely in agreement with your first sentence.
As for the second, I would like to see the progressive talk format succeed. I don't care whether AAR does.
I don't think Franken much cares at this point either (except he'd probably like to get the money owed him).

As for Hartmann, he survived I.E. America. If AAR dissolves, I expect he will still survive. But I think he needs to find another time slot of his syndicated show. Big Ed has middays. Steph has late morning (and he's got his local show). Randi has afternoon drive.
While I'd prefer to see progressive talk stations develop local shows for morning drive, Hartmann might do well with a national morning show (before he does his Portland show).
Early evening is without a strong player but that would be a killer schedule - even for him.
But I think Hartmann needs to make some kind of move or risk being shut out (whether Franken leaves or not).
I am slightly surprised Hartmann hasn't announced some kind of deal with Nova M or Athans already.
It's also curious we haven't heard anything from Athans at all.

 

[fred flintstone]

Fighting Irish has posted some interesting comments about this on his blog.
Click below:
http://ltradio.blogspot.com/2007/01/rob-glaser-and-air-america-costly.html

 

[evnlee]

Real Networks is running on inertia and money still comes in but they are now a minor player and their future is far from certain. Real is to Media what Netscape was to Browsers. What cp/m was to operating systems.

Much as I hate to admit it, FF is right about this one. Real isn't even a feared competitor anymore.

Real is the 'Linux' of the bunch, yeah it works, and some people use it, but more people use 'Windows'. Hands down

 

[fred flintstone]

Much as I hate to admit it, FF is right about this one. Real isn't even a feared competitor anymore.

Wow! I'm going to print this and frame it. ;D