We know the downturn in the economy blew a hole in the CTA's budget this year. Now we hear the recession is reducing payments to the CTA by Titan Worldwide, the company that places ads on the system.
The Sun-Times reports that Titan shorted the CTA about $600,000 the March payment of what should have been $1.9 million:
"Titan's revenues for the year are down 25 percent around the United States, and it has fallen short on payments to transit agencies around the country.
"We're in discussions with them on how to address it," said CTA spokeswoman Noelle Gaffney. "We expect them to meet their contractual obligation."
Yessss! And I expect them to meet their obligation too. That's the risk -- and benefit -- of a contract. If you sell more ads, you get more. If you don't, you get less. Kinda like what the CTA faces with the tax revenue. Except the CTA has no direct control over how much tax revenue it gets; unlike Titan, which actually has to make the sales. So stay firm, CTA!
Meanwhile, the White Sox at least are giving Titan a little more revenue, says Ed Sherman's Blog at Crain's:
The Sox also are using modern technology with video boards at 16 CTA platforms. They feature seven-second loops of a Sox game highlight. Again, it gives consumers something more to look at than just a static ad.
(Photo by Ben)
Filed under: CTA in the news