...and here's some more perspective from one who was there at the beginning of rushbo, Edward McLaughlin and "EIB".
You are right that his show was developed as a cheap alternative to local programming. By the late 80s music radio on AM was in its final days and stations looked for new programming that was cheap. Enter rushbo and hate talk. The rise of cheap satellite time made it possible to distribute his show inexpensively...thus is was offered to stations for nothing. Stations no longer needed local talent...just plug into the bird and the station owner could save a lot of money. But that was only one part of the story...
Deregulation in the 90s led to relaxing of ownership rules that led to a feeding frenzy of large corporations buying up properties right and left. Radio license began real estate...and prices on stations skyrocketed. To recoup the expense (much of it floated on loans) staffs were slashed further and more satellite programming filled the void. Computerized automation replaced the few remaining "board operators" so that stations could be put on auto pilot most of the day...running nothing but satellite talk.
Yes...the rise of cable and its competition for local news and advertising dollars hurt radio but so did the corporatization of the industry that destroyed local content and destroyed the industry's "farm system" of talent and creativity. The industry began to gentrify...relying on the same old voices reaching out to a smaller and smaller audience.
The real slide began when the economy collapsed and the artificially high station values began to collapse. Revenues reached a peak in 2000 and have been in a steady decline ever since. Add to that stations losing upwards of 75% of their "stick" or property value and you have an industry that's in dire straits. It deregulated itself into irrelevance.
The rise of the internet has been a great new medium and "equalizer" to the poor offering of most commercial stations. The radio industry has long ignored or tried to stifle this new medium and now are behind the 8 ball as more people turn to their computers and smartphones to listen and less and less to the radio. In the near future critical mass will be achieved with the new generation of internet systems in cars..."old" radio's last bastion.
The past election cycle showed how political...especially right wing hate radio has become a liability. The corporates were hoping some of that massive wall of money being thrown at TV would go their way. Instead they got little to nothing...one rushpublican operative was quoted as saying "why should be buy advertising when these stations advertise for us 24/7 for free". There are some in the rushpublican party who are blaming hate radio as costing them the election...pushing the party too far off the abyss...the "Conservative Entertainment Complex". This battle of the snake and mongoose are about to begin...and its only going to divide and diminish both sides further.
Give it time...change is happening...the halcyon days of hate radio have passed. Internet radio offers a lot of diversity and the chance for anyone with the dedication and a little technical skill to build their own station. We'll see if all these voices enhance the discussion or further muddle it...
Cheers...
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