MTA dumps delinquent advertising contractor TitanBy
Earlier this month, in an effort to highlight ways in which the MTA can better maximize its revenue potential, I wrote on how Titan Outdoor Holdings, one of the MTA’s advertising contractors, had fallen $18 million behind in its payments to the transit authority. Today, the MTA announced that it has terminated its contract with Titan after the company failed to pay $20 million owed to the authority for 2009 and 2010. The MTA has draw on Titan’s bank to collect the money it is due.
CBS Outdoor will take over the advertising space inside and outside buses and on Long Island Rail Road and Metro-North trains and stations that Titan hard previously managed. This company has been managing New York City subway and Staten Island Railway advertising space for years, and the MTA noted that CBS Outdoors has paid all of its bills despite an economic downturn.
“The sale of advertising space is a critical revenue source, especially at a time when MTA is facing a budget shortfall of $750 million,” MTA CEO and Chairman Jay H. Walder said in a statement. “MTA can’t afford to bail out businesses that do not perform the contractual promises that were the basis for their selection. We’re pleased to be moving forward with CBS Outdoor.” All’s well that ends well.