BY
PAUL MALONEY
The window of opportunity for which streaming and ad-insertion
technology companies have been waiting may truly be upon us. Hundreds
of broadcasters remain "streamless" as we head into
the third week of what we at RAIN have called "Webcasting
Held Hostage." Apparently, ad agencies and AFTRA aren't going
to rewrite their contract to make life easier for this industry.
So what may have been considered by some to be a "novel"
idea -- ad insertion -- may now be a real-life necessity
for broadcasters hoping to keep their on-air product available
on the Web.
Today, as a service to our readers who make the decisions
for their broadcasting companies, we're putting together a quick
guide to some of the major ad-insertion companies. We asked each
firm three questions: "What are the requirements
for a station to use the service?," "How
quickly can the station be back up and streaming without
the AFTRA ads?," and "What is the cost
to the broadcaster, both in dollar terms and revenue
split?"
As we hear back from more firms throughout the day, we'll
update the tables below. Feel free to check back later today or
this weekend for those revisions.
Requirements:What
are the station requirements to run the system?
Time frame: With
Internet connectivity, the process takes about a day.
Cost:What does
the system cost the station in dollars and trade?
Requirements:
Proprietary encoder, with additional software depending
on services.
Time frame:
Encoder installation and ad-insertion systems go up in just
a few minutes.
Cost: Complete package
of services under $500 per month, just ad-insertion less
than $200 per month. No revenue sharing: station keeps 100%
of revenue.
Requirements: Hiwire
works with most major automation systems, and can be customized
for others.
Time frame:
From time of install to time of ad insertion is 24-48 hours
for major systems.
Cost: No charge for
software or installation. Hiwire negotiates separate revenue
sharing agreements with each station, and keeps details
private.
Requirements:
Stations need a Scott or Prophet automation system.
Time frame:
If the station has Internet connectivity, they can typically
start streaming with ad insertion within a week.
Cost:
Streaming and ad insertion services offered for a fee, and
iBeam takes no cut of the ad revenue. There's an installation
fee for the encoder and DSL line. Pricing varies, but a
typical small radio group might average $500/station/mo.
Requirements:
IT encoding software requires a major automation package,
like Wavestation, Scott Systems, Dalet, Prophet, SAM, or
Winamp
Time frame:
Since iM IT is a software-only install, it generally takes
10 minutes.
Cost:
The IT software, installation, and listing on the iM Band
is free. For stations providing their own bandwidth, the
station receives back 65% of the "net gross revenue"
generated.
Requirements:
Runs with most automation systems, though it can run manually.
Time frame:
The time involved varies, mostly depending upon how quickly
an agreement can be reached.
Cost: No upfront
cost. Revenue share varies -- it can be 50-50 or even 60-40
in station's favor.
Requirements:
A station must use a digital automation system to play its
ads for ad-insertion solution.
Time frame: The solution
can be implemented in about 2 weeks.
Cost:
The base cost is $595 per month which includes the cost
of an Encoder PC with the ad replacement software pre-installed.
Requirements:
What are the station requirements to run the system?
Time frame:How
fast can the service be implemented?
Cost:What does the system cost the station in dollars and
trade?
Requirements:What
are the station requirements to run the system?
Time frame:How
fast can the service be implemented?
Cost:What does
the system cost the station in dollars and trade?
Requirements:
The system is built out for automation systems like Audio
Vault, Enco, Prophet, Maestro and RCS...others being developed.
Time frame:
A current client can enable ad-insertion immediately. New
clients can be up in just 24 hours if they have a static
IP and high-speed web connection.
Cost:
$395 per month for unlimited simultaneous streams. The online
inventory is split 70/30% with the station, in favor of
the entity that sells it.
Requirements: Works
with almost all automation systems, and with some extra
programming can actually work with any automation system.
Time frame: If a
station has Internet connectivity, the station can be up
within days.
Cost: No setup fee.
Station starts by receiving 15% of gross revenues, with
that share increasing as profitability increases.
Requirements:
A station must use a digital automation system to play its
Internet inserts, separate from on-air spots.
Time frame:
Typical Turnaround is 3 weeks from Order to Operation.
Cost:
Varies based on complexity of needs. Typical cost would
be $6,295, plus $150 monthly.
You'll notice that the table is notyet complete!
If you represent an ad-insertion company, and your company's profile
isn't complete (or, gasp!, incorrect), please call (312-726-8300
x4435) or e-mail us here.
Likewise, if you're a broadcaster and have an agreement with an
ad-insertion company that differs significantly from what's posted
here, let us know about it!
Keep in mind these companies are not identical. Some are
streaming providers, some simply handle ad-insertion. They have
different technologies that produce different results. And of
course they all make unique arrangements with affiliates.
There's no standard yet, and few (if any) of the firms
offering ad-insertion can be considered stable and established.
If you're a broadcaster looking for a solution to get back on
the Internet, we advise you to call these companies. Ask the hard
questions, and make an informed decision. Click the company logo
to visit its site. We hope you find this valuable.
According to Radio & Records, Emmis
Communications has "no immediate plans" to resume
webcasting.
Emmis Director/Media and Investor Relations Kate Healey
also stresses that Emmis is still a member of the Local Media
Internet Venture, a joint effort by several broadcasters to establish
a shared "radio-owned" web portal system. Healey says
the plan is to eventually have all Emmis stations streaming through
the LMiV arrangement. LMiV will reportedly stream with ad-insertion
through RealNetworks.
According to the story, an unnamed LMiV spokesperson said
LMiV will not resume streaming until a there's a "good inventory"
of advertising to run on the streams.
LMiV is currently in beta stage at Bonneville's WTOP-AM/Washington.
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an opinion on this article?Share it! Simply click
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From
the press release: "Akoo
Inc. announced that U.S. Robotics,
the world's leading modem provider and worldwide supplier of emerging
Internet access solutions, will private label Akoo's KS-110 wireless
audio system, the first product utilizing the company's proprietary
Kima Wireless technology.
"U.S. Robotics will distribute the product under its
brand name at more than 1,100 retail locations throughout the country.
Financial terms of the deal were not disclosed.
"Akoo's patent-pending Kima Wireless technology enables
devices, such as PCs, home
stereo systems, MP3 players, car stereos, PDAs and cellular phones,
among others, to communicate within a 1,000-foot radius."
"The company's recently introducedKS-110
wireless audio system allows users to listen to MP3 files, Internet
radio and digital music on any portable radio or home stereo system.
Akoo's Link-It, which will be introduced in May, will enable users
to wirelessly send music from their MP3 players or portable CD players
to their car stereos."
Software for RAIN's
daily e-mail reminders provided by...
NEW!
If you are
a vendor and would like to knowmore
about sponsoring a button and/or link in this guide, please call RAIN
at 1-312-726-8300 or send an e-mailHERE.