From RBR.com: "Clear Channel has reacted to AFTRA’s streaming fee demand for commercials using union talent (see RAIN here) by suspending all Internet streams.

"Try to access any Clear Channel station via the Internet now and all you’ll hear is this message: '...We are working with both our advertisers and the Recording Industry Association of America to find a solution to those problems as quickly as possible so that we can resume our streaming.'

"The reference to RIAA relates to the ongoing battle over whether broadcasters must pay performance royalties to record companies for Internet streaming, in addition to ASCAP, BMI and SESAC payments, which radio stations do not have to pay for over-the-air broadcasting.

"The straw which broke the camel’s back, however, was AFTRA’s move last week to collect penalty fees of up to 300% for spots using union talent which hadn’t been specifically cleared for Internet use..."

Read the entire piece in RBR.com here.

Note that Clear Channel's WorldClassRock.com and Enigma Digital properties (such as KNAC.com) are still streaming, as they are "Internet-only's," and it has always been understood that commercials on these stations would be streamed.

From Radio Ink: "The latest setback to streaming radio on the Internet can actually be one last opportunity for a handful of Internet companies that provide ad-insertion services to radio stations. Now, it's just a matter of whether or not they can tell their stories effectively and whether the stations now hitting the streaming dump-switch are of any value to them.

"Ad-insertion companies may have just been handed a trump card to help them survive. As stations turn off their streams and wait on the sidelines for another fee decision, ad-insertion companies can jump in, pitch their product and give these radio stations a compelling reason to flip the switch back on..."

Read this entire story in RadioInk.com here.

...

... BY KURT HANSON Here's what this situation sounds like to me: I'd guess that either AFTRA or the Los Angeles chapter of AFTRA signed a new contract with advertising agencies last summer regarding talent fees for radio spots. (RAIN's crack team of interns is trying to research this story right now.) Even though it was commonly-known at the time that radio stations were streaming their signals on the Internet, it sounds as if the agency negotiators let a clause into the contract saying that talent fees would be increased by 300% if the spot was used on the Internet. ("Warning, Will Robinson! Danger! Danger!") This seems like a ridiculously high increase in compensation to air talent given that the total number of ad impressions might go up by perhaps 2%, given the relative size of broadcast versus webcast audiences, but who knows what the negotiators were thinking. (Perhaps the agency negotiators were thinking about making a specific webcast buy -- e.g., NetRadio or Spinner or Sonicnet -- and were not intending to use professional L.A.-based talent for such spots.) Now, months later, AFTRA notices AFTRA talent on a spot that is being run on a station that streams their programming on the Web. They demand their 300% increase in talent fees from the agency. The agency's knee-jerk reaction is, of course, to tell radio stations, "Quit streaming our spot!" Unfortunately, that's easier said than done, since most broadcasters have not signed up for the technological solutions from Hiwire, Lightningcast, RCS, etc., that would permit covering broadcast spots with Internet-only spots. Without that solution in place, the only way to accomodate the agency request is to quit streaming entirely. This solution appeals to the radio stations' corporate finance people because it has the added advantage of reducing their bandwidth costs! (And since the stations haven't started charging advertisers for audio ads yet, there's no short-term revenue loss.) ...

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From CNet News.com: "Napster encounters a double whammy Tuesday afternoon, heading back to court and facing the prospects of new anti-copying requirements, as well as a raft of re-energized lawsuits...

"Also on tap Tuesday is a potentially sweeping escalation of the case against Napster. Independent musicians and music publishers are asking that several individual lawsuits against the company be turned into class-action suits, allowing thousands of other individuals the option to come aboard.

"The spotlight, however, will be on the most immediate questions affecting Napster's survival: Does Judge Marilynn Hall Patel think Napster has followed her instructions far enough in blocking songs? Given Judge Patel's previous skepticism toward Napster, some observers expect fireworks."

Read the entire story here.

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From the press release: "'The Village Voice,' the nation's largest alternative weekly newspaper, today announced the launch of Voice Radio, an online radio station which will debut on April 11.

"Unlike anything on the Internet or radio, Voice Radio breaks traditional rules about music and radio programming by creating a radio program comprised of premier content for the web with streaming services provided by StreamAudio.

"Voice Radio, which can be accessed (here), delivers a smart edgy, lifestyle driven format reflecting the attitudes and taste of the "Village Voice's" discerning readers. Music will range from rock to jazz to blues and hip-hop, from techno to deep house to drum n' bass from blue-beat to back-beat and beat-box. Additionally, Voice Radio will host live music from clubs and local venues."

Read the entire release here.

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April 21-22, 2001	New York & Internet Expo: New York, NY
June 20-22, 2001	Streaming Media West 2001: Long Beach, CA