June 16, 2000  


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BY KURT HANSON
Rock consultancy Jacobs Media hosted its "Jacobs Media 2000 Summit" for several dozen
active and alternative rock programmers Wednesday and Thursday in Los Angeles (affiliated with R&R Convention 2000) and featured keynote speaker Jason Calacanis, editor and publisher of a variety of Internet-oriented trade publications including Silicon Alley Reporter.

Calacanis, whose publications cover the Internet scene in New York and Southern California, offered an hour's worth of insight about radio and the Internet.

He began by sounding an alarm -- "Radio may be a bunch of people in the first-class cabin on the Titanic. You may have an unsolvable problem; you may want to just enjoy it until it sinks" -- but offered a more-optimistic perspective as his speech progressed.

"At the end of the day," Calacanis told his audience, "what this is all about is people's time."

He noted that people are probably spending more hours per day reading than they were a few years ago, due primarily
to e-mail. "But the percentages are changing. You're spending less time reading professionally-produced content and more time reading e-mail from friends and neighbors."

Similarly, Calacanis observed, younger consumers are learning how to edit their own videos and produce their own music mixes as easily as our generation can edit text in Microsoft Word.

By implication, consumers may spend more
time listening to music in the future, but less of it may be in the traditional professionally-programmed radio form.

"These streaming audio things are not your competition -- your competition is Napster.," Calacanis suggested. "Consumers are saying, 'I don't want to wait. I want to listen to Eminem right now!'"

"The biggest thing you have going,"
Calacanis said, "is your reach -- your relationships with thousands of people. They know your name. But that reach is going to go away fast as usage percentages change."

The opportunity, he said, is for a radio station to become a multiple-medium brand, like Martha Stewart, Oxygen Media, and Bloomberg, with an Internet presence as well as a broadcast presence.

(Calacanis, true to his own advice, has launched products that include glossy magazines, e-mail newsletters, websites, and high-end conferences.)


In an answer to a question from Paul Jacobs, Calacanis offered three first steps a PD should immediately to begin creating a multiple-brand platform:

(1) "You have to use it to understand it. In addition to using it yourself, another useful task is to find somebody young who uses the Internet and sit with them. Watch how they use it -- for example, how many things they're doing at the same time."
(2) "Find the right balance of on-line, real world, and ether (your broadcast signal). For example, owning people's e-mail addresses is important. If I had a radio station, every DJ would have to be on e-mail all the time and respond to every e-mail they get. Embrace your audience, don't hide from them! Another example: I'm a big fan of WFAN. I'd listen to them at work if they'd put up audio clips, but they don't...
(3) Go deep. "The 'new consumer' wants to go deep. For example, I can rent the DVD of Kurosawa's "The Seven Samurai" and listen to an alternate audio track with three hours of background information. In your case, as one example, you can use your website to help your listeners more about the person spinning the records. Are disc jockeys allowed to show any personality any more?"

He concluded his speech by showing a hilarious Flash cartoon on the Metallica vs. Napster lawsuit ("Money good. Napster bad") from the CampChaos.com website.

You can take a look
at Calacanis's publications, beginning with the website of his flagship, Silicon Alley Reporter, here.




NAB's Eddie Fritts rejects
streaming fees for broadcasters

From R&R Online: "There is a symbiotic relationship between stations and the record companies whose songs are played," the NAB's Fritts told the House Copyright Subcommittee yesterday. The committee is probing performance fees for radio streams on the Internet, and the RIAA believes fees should be paid to performers. "Broadcasters pay about $300 million a year in royalties to the copyright licensing groups. As we go forward into the world of the Internet, I would suggest that system continue to operate well." Read more of R&R Online here.

GlobalMedia posts 321% gain

From Radio Business Report: GlobalMedia (O:GLMC) had zero revenues a year ago, so it is crowing about a 321% increase from $58.6K in its fiscal Q2 to $246.6K in fiscal Q3, which ended 4/30. The company’s net loss grew to $3.3M in Q3 from $2.5M in Q2. GlobalMedia calls itself “a provider of revenue generating streaming media and e-commerce solutions.”
Read more in RBR.com here.




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To read recent past issues of RAIN -- if you want to follow the thread of these conversations -- simply use the arrow(s) next to the issue date at the top of the page.

(As with any well-designed website, clicking the main logo -- which by Internet convention should be in the top-left corner of the page -- always returns you to the home page. In RAIN's case, that's the current day's issue.
)

"While choice is good for ME...you [may] never make a penny..."

WOW! It's great to see that conversation has been struck up. I'm glad to see so many people talked about my post yesterday. I'd also like to thank RAIN for posting it.

I'd like to address the man who stated to my post that "it's about choice."

While choice is good for me I would assume that unless someone settles on your website as one they'll frequent, you'll never make a penny. So then I ask you what is your purpose? Are you throwing darts? Is it to draw 100 million people through your site and retain none of them? You may be able to get people to come to your site but can you get them to return?

While this "plethora" of sites is great for users, I would think that it means didly squat for a company that is banking on people coming to [and returning to] their site.

I have a host of sites -- many discovered through RAIN -- that I use regularly. ESPN (a guy thing), Kerbango for new
choices to add to my small list. Rolling Stone for my music news. Quicken for my stock quotes and biz news, Mr Showbiz for my entertainment news, Yahoo and Alta Vista with Alta Vista being preferred. MSN for the incredible space pictures and a variety of other things. CyberRadio2000 for my Rock N Roll, Blues and Soul music, WWW for my smooth jazz and techno. Kiss' site, Hunger Relief and a few others.

I choose sites that are designed so that I don't have to be a rocket scientist to figure them out and they have things I enjoy. Like you said, it's about choice and many of the sites don't seem to have an allegiance of people choosing them so they'll probably go out of business.

Just curious: What number is considered a big number for traffic these days? I see so many numbers mentioned and not one has ever shown proof. Are these companies just telling people their numbers or are they showing proof of those numbers? Could people be lying about their numbers?


                        
-- Food for thought from Gulliver (Don't drink and surf!)

"This is a classic example of the problems others outlined earlier..."

With regard to the Cablemusic.com quote, "Our growth is due to the simplicity of the site", hmmm...

I have some personal experience to relate: I tried to sample their channels and kept crashing. I e-mailed them looking for a solution and ultimately they told me that I had to have Netscape 4.7 (the latest version at the time) or it wouldn't work and I had 4.5.

This is a classic example of the problems others outlined earlier. I can't speak to the product because I couldn't access it and wasn't about to risk a having to do a total re-install by donwloading what was then a beta release (4.7). I wonder how many people (few had 4.7 at the time) had my experience and just moved on.

Simple? I'm not sure. Growing? It would grow a lot faster if you didn't need a beta release to run it!


                                              -- Bob Bellin, MP3Player.com


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

        Thanks!

June 14-17 R&R Convention 2000, Los Angeles
June 14-17 PROMAX & BDA, New Orleans
July 13-16 Upper Midwest Conclave, Minneapolis
August 3-5 Morning Show Bootcamp, New Orleans
September 20-23 NAB Radio Show, San Francisco
October 5-7 Billboard/Airplay Monitor Seminar, New York
November 5-7

NAB European Radio Conference, Berlin

Nov. 28-Dec. 1 Radio Ink Internet Conference, Santa Clara, CA



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