April 19, 2001  
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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 not yet 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.


Would you like
to share your opinion? Drop us a note! (Or, to use your own e-mail software, click here.)

  Your e-mail address:
  Your name (if not obvious from your e-mail address):
    Kurt, this is deep background -- don't quote me!

        Thanks!



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.

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



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 introduced KS-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."

Read the press release here.



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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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