BY PAUL MALONEY
According to a report in AllAccess.com, Clear Channel has decided to downsize staff at LA-area WorldClassRock.com.

The following message was posted on the WorldClassRock forum page from GM/PD/air personality Nicole Sandler (pictured with artist Don Henley):

I'm so sorry to have to post this, but the gang here will be leaving. WorldClassRock.com will continue, but unfortunately without me, (morning personality) Andy Chanley, (APD/MD) Rolee Rios and the others you've come to know over the last year or so.... I thank Clear Channel Communications for the opportunity to build WorldClassRock.com and keep it going for as long as we have. It's been an honor.

In February, Clear Channel Radio Online president John J. Martin sparked a bit of a controversy when he commented to The Wall Street Journal that WorldClassRock had achieved profitability, mostly from payments from partners Microsoft and RealNetworks (see RAIN coverage here). After industry journalists and involved partners spoke out, Martin claimed that his comments were taken out of context.

Two days later, it was officially announced that Clear Channel, in the interest of expanding its online presence, had purchased Enigma Digital, parent to online radio outlets KNAC.com, GrooveRadio.com, CurbServer.com, and LuxuriaMusic.com (read RAIN coverage here).

According to AllAccess, in addition to the personnel mentioned in Sandler's forum post, Production Director Scott Lowe is also among those on the out's. The trade site also reports that programming, at least in the interim, will be handled by KNAC.com PD Long Paul.

Several WorldClassRock listeners expressed their disappointment in the turn of events in the online forum. Here's one offering:

Early last August, the station became the first significant station to move directly from the airwaves to an Internet-only presence on the Web, after Clear Channel sold the 103.1 FM frequency in Los Angeles to Entravision (RAIN story here). Clear Channel later decided to return the broadcast to an AM frequency, when at the time it was generally believed that broadcasters simulcasting on the Web wouldn't be liable for the same performance copyright fees as "Internet-only" outlets.

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From CNet News.com: "Analysts aren't campaigning for Internet media companies, but they are quietly becoming a little more upbeat. At this point, defining Wall Street's view as cautiously optimistic might be a stretch, but there's a consensus that online ad spending isn't getting any worse...

"'We were somewhat surprised by the level of optimism out there, particularly from ad agencies who feel that clients are finally ready to pull the trigger on Internet advertising budgets,' (SG Cowen Securities analyst Scott) Reamer said. 'We did not hear any instances of Internet budgets being expanded, but certainly the free fall they were in since last summer is over...'

"Sure, the freefall is over, but the key for online media companies will be boosting their roster of traditional advertisers.

"(ABN AMRO analyst Arthur) Newman contends that online advertising will rebound only after traditional methods -- print, TV and radio -- bounce back...

"'Online advertising is unlikely to rebound until after traditional advertising emerges from its current slump,' said Newman. 'A recovery in online could be as late as mid-2002.'"

Read the entire article here.

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From Radio & Records: "Using Ingeniux’s XPower publishing system, Fisher will develop a single 'content store' for all of its station websites to obtain and present news...

"XPower allows Fisher to aggregate news from its news operations in a single place that is accessible to each station, which can then post the news on their own sites. She says future plans include the ability for users to download information from Fisher websites directly to their own PDAs or Palm Pilots."

Read the story here.

Seattle-based Fisher Commmunications owns 12 television and 26 radio stations.

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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
Aug. 15-18, 2001	Gavin Summit IX: Boulder, CO
Sept. 5-7, 2001	XStream: Broadcasting on the Internet at the NAB Radio Show: New Orleans, LA