April 16, 2001  
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BY PAUL MALONEY
According to ABC Radio property WLS-AM/Chicago's
website, the company was to have taken down the last of their remaining online streams as of midnight this morning.

From the site:
"Effective 12:01 a.m. on Monday, April 16th, Newstalk 89 WLS -- along with all other ABC radio stations -- will temporarily suspend our live Internet broadcasts. ABC is rebuilding its Internet streaming infrastructure in order to handle all of the many Digital Rights Management issues that have emerged..." The site did indicate that the absence of a live stream is temporary.

According to Radio Ink (here), ABC-owned music stations had pulled their streaming as of last Friday, but the company continued to allow their talk stations to stream.

A message on WABC-AM/New York's site was a little more direct (see screenshot). With the headline "Who grabbed my WABCRadio.com audio stream away from me?" and an accompanying animation of a hand bursting through the page and "grabbing," a short bit all but blamed the situation on AFTRA announcers.

WJR-AM/Detroit also indicated
its stream had been pulled to be "retooled." Even KSFO-AM/San Francisco, which had reportedly still been streaming past this morning's announced deadline, has now suspended their stream.

...

...
BY KURT HANSON
WABC's explanation, as shown in the screenshot above, seems a bit disingenuous. AFTRA is not "now making demands." The truth is, they successfully negotiated an increase in talent fees in arms' length negotiations with agencies last summer and signed the contract last fall.

Perhaps it seems ridiculous
that agencies would have agreed to quadruple the talent fees for spots that run on the Internet, but that's what they apparently did. Maybe they traded something else way for it. In any event, it would seem that AFTRA won its increase fair and square.

It's actually the agencies that are primarily responsible for shutting down radio station streams. They (or their buying services) are the ones that have decided that they don't want to pay that extra one-time $600 expense to increase the reach of their schedules.

And the secondary culprit
might be the radio stations themselves, who for many months now have had the opportunity to acquire the technology that allows spots to be selectively stripped out of the broadcast stream and replaced with Internet-only spots...but chose not to do so.

(Am I wrong?
Am I missing something? E-mail me here.)
...



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Later today, RAIN publisher Kurt Hanson
will cohost "Radio Files," a live, streamed industry talk show at RadioInk.com.

Radio Ink editor Ed Ryan and Hanson will discuss the recent decision by some major broadcasters to suspend streaming their broadcast content on the Internet at the request of advertising agencies, who are contractually obliged to pay union commercial talent extra for radio commercials that run online.

Also to be discussed is the possible solution offered by ad-insertion technology. Scheduled to appear on the show are representatives from ad-insertion companies like SurferNETWORK CEO Gordon Bridge, CLBN CTO Frank LaFraniere, and RadioWave CEO Bill Pearson. Guests will also include LMIV CEO Jack Swarbrick; and officials from the commercial talent union, and advertisers and advertising agencies.

The show will stream this afternoon at 3 PM CDT (4 Eastern).


Have an opinion on this article? Share it! Simply click the headline at left to bring up a convenient "Submit" form.


From the Industry Standard: "MP3, a popular format for downloading music from the Web, is encountering competitive pressure as leading technology companies such as Microsoft Corp. work to subtly wean consumers away from the technology, Thursday's Wall Street Journal reported...

"Microsoft, for example, plans to severely limit the quality of music that can be recorded as an MP3 file using software built into the next version of its personal-computer operating system, Windows XP. But music recorded in the Redmond, Wash., software company's own format, called Windows Media Audio, will sound clearer and require far less storage space on a computer.

"RealNetworks Inc. of Seattle also is encouraging consumers to use proprietary software formats, such as its Real Audio 8, though RealNetworks' listening software can accommodate a variety of different formats, including MP3 and Microsoft's."

Read the full story here.



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RAIN readers have
been quite vocal about their feelings regarding webcasting and its most recent challenge. This is just a sample of the great feedback we've been getting. We hope to continue to publish more as this ordeal develops.

Please share your thoughts with us and other RAIN readers. E-mail us with your insight at feedback@kurthanson.com, or feel free to use the "Send a quick message to RAIN" boxes. We look forward to hearing from you.

"We give the ad agency too much control..."


Throughout the dialog that is looming drearily about AFTRA/AAAA and all the other groups looking for another nickel there is one thing they have overlooked, the CLIENT!. As I recall from my 35 plus years in marketing nothing would happen if we didn't have a client to represent.

Frankly I think we give the "ad agency" too much control!

While radio is working towards being a viable partner with the Internet -- which by the way, is opening doors for some clients presence to be introduced to a wider world -- we are being told by the "ad agency" that we cannot stream some commercials without prior approval. HUMBUG!

Agencies and broadcasters need to be partners, not adversaries -- and realize that better and more profitable gains will happen as an end result.

 

Dan Johnson


"Listeners 'can't' legally listen..."


This is simply one more assault on how listener's can't (in somebody's language) legally listen to our radio stations.

First it was the ASCAP/BMI cops (they were really Muzak salespeople weren't they?) telling every mom-and-pop store it's illegal to listen to anything other than "fill-in-the-blank" subscription service even though the Supreme Court had clear guidelines on how commercial businesses could play radio stations. Now it's this.

I don't have any quarrel with anybody asking to be paid for their work; I have a huge problem on how this one is being laid on our doorstep.

 

William Wertz
Fairfield Radio



"Wait 'til the other shoe drops with DMCA..."


I would be worried about Arbitron and Measurecast and what those ratings are going to look like without the big players. Will it be all euro stations or will it be Internet only plays. And wait til the other shoe drops with DMCA.

 

Lou Josephs



"Why should AFTRA get more money?..."


This whole thing is totally absurd! The music industry should be thrilled that stations are webcasting! I listen to web radio because the over-the-air stations in my city do not offer a lot of what I care to listen to. I have had to seek out other sources. Translation: I am hearing things that I might actually BUY, solely provided by these webcasts.

As for AFTRA, there are only 2 types of web listeners. Those that can receive the station over-the-air and those that can't. Those that can most likely also listen over-the-air in their cars, homes, offices, etc. This means they are the same audience. Why should AFTRA get more money for that?

For those such as myself, I cannot patronize local advertisers (since I don't live there).

 

Dave



April 21-22, 2001 New York & Internet Expo: New York, NY
April 21-26, 2001 NAB "The Convergence Marketplace": Las Vegas, NV
June 20-22, 2001 Streaming Media West 2001: Long Beach, CA










 

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