To read yesterday's issue of RAIN, simply click on the blue arrow to the left of the issue date above.

BY PAUL MALONEY
World Music Radio has suspended their streaming, and a message on the website says the company has taken a summer hiatus. While some sources have indicated that the company is in fact in its death throes, board member (and past president) Arline Lowenthal (pictured below) insists that just a "very small" amount of funding is necessary to resume operations.

"All of our resources are intact," Lowenthal told RAIN. "The website is active, the studios are intact, and we have 45 DJs standing by. We're in need of a very small amount of funding -- too small, in fact, to go to lenders. At that point (of new cash infusion), we'll resume streaming."

A message on the homepage says, "WorldMusicRadio is taking a Summer break....This is only for a period of 3-4 months. We will 'reboot' again in the Fall. We need time to reorganize and restructure so we can come back stronger than ever." The site also promises, "We'll be back, so don't worry -- everything's gonna be alright now."

Lowenthal stressed that she believes her company's situation is "an opportunity" for other Internet radio entities "to come aboard and get the best all world music Internet station for a very small investment."

Lowenthal remains on the company's board of directors with acting-president Peter Crowheart and secretary Colin Terrey. In November, RAIN featured World Music Radio in an "Investment Opportunity" segment (here).

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Yesterday, we ran feedback in response to Bob Bellin's "RAIN Guest Essay" from Monday (here). This first piece is from Mr. Bellin, commenting on Live365.com CTO Peter Rothman's response to the article. Rothman's comments are highlighted in violet...

"The law is limiting the future of webcasting..."

"Also, he's randomly mixing ATH, AQH, and share points in his discussion so the calculation of 0.1 share is completely unclear. AQH and ATH are not equivalent and can't be directly compared, and neither of them is equivalent to share points."

I beg to differ. One can take either number and equate it to share points. Let's not forget that ATH is just another expression of AQH that Arbitron crafted to make the paltry audience of even the top rated webcasters appear larger. ATH is nothing more than is the webcast ratings equivalent of the old joke about the club owner that lets short people in free because they make the drinks look bigger.

"You can't predict the future of Internet radio by simply assuming the future will be like the past and that's Bellin's entire argument here."

My argument is that the law (the DMCA) is limiting the future of webcasting by forcing fatal limitations on its programming and allowing unknown licensing fees to be levied indefinitely. The future is being thwarted by a one-sided, anti-consumer law (written by the recording industry) that Congress was hoodwinked into passing. Fix that and I agree, the future is limitless. Until and unless the law changes, the future will be like the past...not because I say so, but because Congress said so.

"I'm betting that Spinner and NetRadio are in the same ballpark, so the May AQH for Internet radio as a whole must be in the vicinity of 20,000 at least."

Expressed as a share of the national radio pie, that number won't even register, which is my point. A 20,000 AQH is less than the we used to get in AM drive in Greenville, SC (mkt. #57 at the time) as the number 3 station. Hardly impressive considering that half of America is online and there are so many webcasting options available.

"I'm curious about what the AQH numbers for early FM stations were."

That's a great question/analogy. FM radio's technological hurdles were pretty much overcome by the early 1960's and they had no more programming restrictions than their AM counterparts. Webcasters have significant technological issues to overcome and aren't allowed by law to do many things that their terrestrial counterparts can.

It took until around 1980 before FM radio became a viable business, almost 20 years after the tech problems were surmounted. What does that say about webcasting's timetable?

Bob Bellin, CEO MP3Player.com

"If they don't know, how will they come?..."

(Bellin's) commentary on Internet radio is missing one piece -- public knowledge, or the lack thereof. Having owned an Internet radio network for 2 years and created two Internet streaming conferences (CasterCon and ConXis), I can tell you that when I tell people about Internet radio, 4 in 5 say they've never heard of it. Tell them the word Napster and they say, "Oh! I've heard of that on the news."

Recently I was a guest on "Online Tonight" with David Lawrence. My numbers increased 25% as a result of that 20-minute interview. Same goes when RCN Radio Networks was featured in "The Capital Times" in May -- an increase in listenership occurred.

The analogy of using a karaoke machine on a street corner is an interesting way of looking at this problem. People walk down the street, and they hear of your business as you shout it out over the mic. Public awareness happens.

What is needed NOW is someone to stand on that same street corner and promote Internet radio.

It has been my goal at RCN Radio Networks to reach as many media outlets as possible and let them know about Internet radio. Our marketing campaign will begin in August with TV and Newspaper advertising.

Bottom line -- if they don't know, how will they come?

Chris J. Popp RCN Radio Networks

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