April 23, 2001  
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If you're attending the NAB in Las Vegas, we'd like to invite you to a special open discussion on the crisis facing webcasting. We're tentatively planning on meeting at Gordon Biersch for delicious Marzen beer and garlic fries. The restaurant is just 1/2-mile from the Convention Center, at3987 Paradise Road, just north of East Flamingo Road (map here). For details and confirmation, please call Kurt Hanson at 773-354-KURT.



From Yahoo:
"The recording industry scored a win with the U.S. copyright office this week, which has ruled that radio broadcasters are not exempt from licensing royalties when they simulcast their programs on the Internet.

"The decision, which was announced Friday, was also cheered by digital media companies, or Webcasters, who sided with the Recording Industry Association of America (RIAA) as part of their crusade to clarify what they say are gray areas of copyright law, which are impeding their efforts to provide entertainment on the Web...

"The Copyright Office on Friday also issued another ruling relating to a dispute in the marketplace between Webcasters and record companies about whether some types of personalized radio falls under the category of interactive services.

"Earlier this year, DiMA
petitioned the U.S. Copyright Office to initiate a rulemaking on the licensing status of consumer-influenced music programming over the Internet. In its petition, DiMA sought a declaration that 'consumer-influenced'' Webcasts qualify for statutory compulsory licenses rather than individual licenses. The Copyright Office declined to initiate a rulemaking proceeding."

Read the entire story here.



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BY PAUL MALONEY
The industry's focus on ad-insertion
companies these past weeks has served to intensify the friction between two of the field's competitors.

Through press releases and statements to industry news sources like Radio Business Report and Radio Ink, Lightningcast Chairman and CTO Tom Des Jardins and Hiwire CEO Warren Schlichting have questioned the veracity of each other's statements about their company's success, technology, and business practices.

Last week, Lightningcast announced (read the press release here) that they, along with streaming aggregator iMNetworks, were "creating a de facto standard for ad-insertion." Des Jardins referred to his company as "the established market leader."

Hiwire immediately responded
. A spokesperson from Hiwire was quoted in Radio Ink (here) as "They're not even close...Tom (Des Jardins) has repeatedly said that Lightningcast will have around 4 million aggregate tuning hours..." Hiwire claims that with their recently announced deal with MusicMatch, their aggregate tuning tops 9 million hours. Hiwire has repeatedly challenged Lightningcast to prove their reach by revealing their list of station affiliates, which Lightningcast has so far been unwilling to do.

Des Jardins came back with both guns firing. He backed his firm's claims in last Thursday's RBR, saying "Lightningcast really does have huge market penetration and we’ve stopped releasing that information because every time we release our customer list, Hiwire goes and beats them up and we just don’t think that’s the way to treat our customers." He blamed Hiwire for affiliate DiscJockey.com's problems, and challenged Hiwire to join in establishing a standard: "If Hiwire truly believes that they want to benefit the industry, then show some ***** and let’s do this." Schlichting has since once again challenged Des Jardins to reveal his company's affiliates.

Hiwire and Lightningcast have repeatedly clashed on technology issues as well. The two firms have challenged each other in the past to show that their respective technologies can work with different streaming formats, are functional with different browsers, and the true "targetability" of inserted ads on "client-side" versus "server-side" systems.

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:
"In a pioneering approach to new media concepts, Kickworks and the Recording Industry Association of America (RIAA) announced the signing of an agreement that will enable Kickworks to create a legal digital music library to be delivered online via Kickworks Broadcast Radio Network...

"Under the terms of the agreement, Kickworks has the rights to the recordings of all RIAA members, which account for more than 90 percent of all legitimate recordings in the United States. In turn, Kickworks DJs, who can be anyone, anywhere, will be able to use these recordings in broadcasts consistent with the Digital Millennium Copyright Act (DMCA) statutory license.

"The rights of the agreement extend beyond consumers to users creating and accessing stations through Kickworks' other distribution channels, such as affinity group sites and corporate sites."

Read the press release here.

...
...
What exactly does this all mean? Is this really something revolutionary? There are other companies that claim to be fully RIAA-licensed. Is it like Live365? As far as I know, Live365 DJs are allowed to play RIAA music as long as it follows DMCA. The site www.kickworks.com is not accessible and therefore offers no further clues. --PM
...



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"Broadcasters...are under-utilizing the Internet..."


Broadcasters looking to insert commercials into their existing "terra" streams continue to miss the mark and are under utilizing the Internet.

What they should be focused on is creating a wider offering of sub stations promoted via the terra signal, and creating new inventory within new programming. The aggregation of new listeners from competing formats on the "terra" side will yield far greater rewards than the audience duplication created from a single signal.

 

Rufus Frost
theDial.com


This is in response to RAIN Reader Feedback (from SuperRadioFan, here) on the discussion of ad-insertion services...

"Over 60% of those listening online are local..."


Time and time again we see that over 60% on those listening online are local! One of our streaming stations, an AM in San Francisco, continually sees nearly 70% of its online listener base from within the market.

Remember that a large percentage of webcast listening is still done "At Work" where a portable radio may not be available or the signal cannot reach. Those that listen online during this very important day part traditionally are the stations P1's -- a key segment of the stations' audience advertisers are trying reach.

 

George T. Bundy
BRS Media Inc.



This feedback is in response to RAIN's exclusive interview with ABC Radio EVP/New Media Geoff Rich (here)...

"That's just a new 'side' station..."


ABC's system "sophisticated" system? But if it's a studio-level solution and not a station-level solution, then all of the content (including Internet-only ads, etc.) have been pre-set before the stream leaves the radio station. And if that's true... well, it sounds to me like that's just a new "side" station put together just for the Internet. Not so sophisticated.

 

Deep background only


This is feedback from streaming radio listeners who've been "stranded" and unable to hear their usual Internet stream...

"I may not make it back..."


"I'm not sure what all is happening here, all I know is that I see neat things being delayed and diminished by arguments over protection and who gets what slice of which revenue. This ultimately serves (IMHO) to hurt the format and frustrate the consumer. I appreciate attempts to generate & distribute revenue in appropriate ways, but it's useless if you drive the customer away in the process..."

"Some hours of the day the only way I get good radio in Dallas is to listen to Denver stations..."

"Now we have another greedy union preventing webcasting of radio programs. Tell it like it is. Unions have to go..."

"Is there any way you could continue to stream your broadcasts until you have the solutions to your problem worked out - then quickly make the change?..."

"You're really screwing with my day here. The only way I get WBAP is on the Internet and I count on it for traffic, weather and news... if I spend 60-90 days without it, I will have to develop alternatives and I may not make it back..."

 

Various streaming radio listeners



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


Reprinted from Friday...

Yesterday, as a service to
our readers who have pulled down their broadcast stream in wake of the AFTRA broadcast commercial controversy, we featured a quick guide to the major companies offering ad-insertion services. We hope you found the guide helpful.

We're still working on filling in the remaining details. You can still access the guide by clicking here, or on the screenshot.

Again, if you represent an ad-insertion firm who we haven't profiled (or we've posted something erroneous), please let us know via e-mail here. Likewise, if you're a broadcaster who's used one of these services and would like to add something informative, please use the same e-mail link.







 

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