RAIN: Radio And Internet Newsletter

BY WILLIAM GOLDSMITH
I'll go out on a limb here and predict that satellite radio -- at least in the form proposed at this point by XM and Sirius -- will be the most expensive debacle in the history of mass communication.

Aside from the many valid criticisms of their business models, they still face the problem that killed Iridium and has almost finished off Globalstar. That would be the inconvenient fact that anything involving dropping big chunks of aluminum and silicon into orbit requires a lot of very long-term planning. The basic hardware design and system capabilities of the XM and Sirius systems was set in stone at least five years ago.

In the meantime, just as the huge rural and third-world markets that Iridium and Globalstar had counted on dried up nearly completely due to the rapid global spread of cheap land-based cellular networks, an entirely unforeseen competitor to satellite radio appears to have arisen as well.

It's still a blip on the horizon at this point, but this whole Internet radio thing -- when coupled with the G2.5+ wireless networks and satellite IP networks that will be coming online over the next few years -- could easily disrupt the already-fragile business model to which both companies are committed.

As time goes on, and the networks continue to improve, Internet radio -- with its multimedia and interactive capabilities, endless variety, and free access -- will only become more and more attractive when compared to 200 channels (of which probably less than a dozen or so would be of interest to any individual listener) at $9.95 a month.

And you can't compare the costs of the satellite radios and subscription costs to the costs of broadband Internet access and the fixed or wireless devices on which you receive it -- because listeners will already have the devices and the access for other reasons. As far as they're concerned, Internet radio is free.

You also can't judge the sound quality of Internet radio by what you hear today when you go to a typical radio website. Streaming stations will sound every bit as good as the satellite stations. I know that's possible, because I experience it every day.

I run an Internet station -- RadioParadise.com -- from a studio at my home. I remotely control a music server located at my Santa Cruz office (OK - the back room at KPIG), which streams at 128kbps to a server located at AOL's server farm in Vienna, VA. I then listen to a stream from that server here at my studio.

I listen to it all day long, nearly every day, and it sounds wonderful -- far better than anything on FM, with only a few glitches here and there during my ISP's peak hours.

I hear the future of radio every day, and it's blasting right down my DSL pipe.

William Goldsmith is Webmaster and programming consultant for KPIG, and founder/program director of RadioParadise.

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"You listen to it, you don't interact..."

Sony's attempt to "create demand" for the eMarker product -- a concept that has already failed once, as

reported previously in RAIN (here) -- is yet another example of trying to extract blood from a turnip.

It's as though the marketing people at companies like Sony and (just-failed) GlobalMedia have never even listened to a radio themselves, much less been involved in the business. Sony's eMarker and GlobalMedia's "branded" media player concepts suffer from the same fatal flaw: they require an active participant. But radio is a

"passive" medium -- you listen to it, you don't interact with it.

When I listen to my car radio, I'm driving...not clicking on some digital rabbit's foot. When I listen to Internet radio at work, I'm working...not staring at a banner ad.

GlobalMedia and others learned this lesson the hard way. Must Sony repeat the same mistakes all over again?

Robert Brooks, Webmaster,
KHYI.com

"You are alienating the audience paying your bills..."

I can't seem to understand why there is such a big fuss of intellectual property concerns for streamed Internet content. Music industry execs should be thrilled that their music is being listened to by a wider audience. The individual radio stations are already paying for the right to air that content. Promotion and getting the product into the ears of the listener should be foremost in

the recording industry's mind, not how much more money can we squeeze from the local radio stations.

As for commercials, I am sure that you (broadcasters) are green with envy that someone who has paid for a spot in Des Moines, IA has that commercial available in New York City or anywhere else in the world. I'm sure the feeling is that the advertiser is getting something for nothing and that must stop. Quite honestly, though, something that is being sold in Des Moines, IA probably is not going to be sought after in New York City.

Give the advertisers and the listeners a break and stop playing around with streaming radio. This whole initiative by ABC and other radio networks reeks of greed. Haven't we seen enough greed? Everyone seems to want an ever increasing slice of the pie at the expense of the public in general.

So, while you people in the entertainment industry are cashing your big checks right now and devising ever more complicated schemes to bilk the public, remember, you are alienating the audience that is paying your bills. And, one day, we may just stop paying them.

Michael Clancy
Computer Technology Specialist
Nova Southeastern University

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Kurt, this is deep background -- don't quote me!

Thanks!

From Gavin: "A program from MP3.com for terrestrial radio stations, originally announced in June 2000," (and re-announced on Friday) "is

beginning to draw attention from observers watching the digital music portal diversify its businesses...

"MP3.com provides format-specific content and services to listeners, under the station's brand and on the station's web site. Stations that sign up for the service get access to frequently updated content, including music downloads, music-management tools, local music charts, e-commerce opportunities, event information, and one-hour independent-artist radio shows.

"The service, which on first glance looks similar to programs that have failed to catch on in the past, offers stations some pretty compelling (and localized) tools.

"Radio stations participating in the new Syndicated Radio Services Program can select, manage, and update format-specific content to be streamed from station websites."

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June 14-16, 2001	R&R Convention 2001: Los Angeles, CA
June 20-22, 2001	Streaming Media West 2001: Long Beach, CA
July 19-22, 2001	The Conclave Learning Conference: Minneapolis
Sept. 5-7, 2001	XStream: Broadcasting on the Internet at the NAB Radio Show: New Orleans, LA