Sept. 7, 2000   
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BY KURT HANSON
While America's top broadcasters
are essentially still messing around with the question of what their Internet strategy is going to be, a Canadian-born entrepreneur who owns a small nine-station group in the upstate New York state area has leapfrogged past all of them with the launch of a 950-station Internet-only radio network.

Martz Communications Group announced this morning that FMcities.com is "live and on the air" in 12 U.S. markets -- New York, Los Angeles, Chicago, San Francisco, Philadelphia, Boston, Atlanta, Dallas, Detroit, Houston, Washington DC and Seattle -- "streaming CD quality, digital radio sound with local and national news and information from 50 Internet radio stations in each city."

Those 600 stations are on top
of the 350 stations that entrepreneur Tim Martz launched in seven major Canadian markets earlier this summer.

By the end of next week, the firm says that it will launch an additional 400 radio stations in eight more major markets; Miami, Phoenix, Minneapolis, San Diego, Denver, St. Louis, Cleveland and Baltimore.

FMcities.com is privately owned and funded and has offices in San Francisco, New York and Ottawa. Martz himself holds joint U.S.-Canadian citizenship, attend Northwestern University's Kellogg MBA program in Chicago, and for 15 years has owned radio station clusters in Michigan, Maine, and Wisconsin.

Martz's stations' programming is provided by Everstream, the Cleveland-based firm that has until now been primarily used by newspaper websites. (See RAIN stories here and here.) The 50 channels of music offered in each city are, I believe, essentially identical, although Martz plans to add some customization later this year.


"'The Internet is dramatically changing the way we listen to radio,' said Martz said in his firm's press release. '"Internet radio gives listeners an amazing array of music options and advertisers the power to get their message directly to the people who buy their products; it provides listeners with CD quality sound and puts them in control of what they want to hear and see."

"Using state-of-the-art audio streaming technology through an affiliation with Everstream Inc. and the Windows Media Player, each of FMcities.com's stations offers innovative features such as:

     -- No commercials until November (and limited commercials later),
     -- Name and artist of current song,
     -- "Pause a song" for a minute or an hour and resume at the note you left,
     -- "Next selection" tells you what artist is up next,
     -- "Skip to the next song" lets you jump immediately to hear the next song, and
     -- One step "click and purchase" the current CD (through CDNow.com).

Look for an exclusive RAIN interview with Martz -- including a discussion of the financial dynamics of his venture -- in tomorrow's issue of RAIN.


...

As you'll read tomorrow,
this sounds like it could be a promising venture. The only caveat I'd note is one of terminology: Have they got 50 stations in Chicago...or simply one website with 50 channels? (From a marketing point of view, the former terminology sounds a lot better, which is of course why they're using it. (Note that it also makes for a more dramatic-sounding headline.)
...

More tomorrow in RAIN!



BY PAUL MALONEY
The fact that the shows aren't live but archived detracts almost nothing in terms of how enjoyable LondonUnlimited.com is. The site is very attractively designed, the personalities are a hoot, and the shows, featuring music from unsigned artists and comedy from London's underground scene, are topnotch.

Take a look at some of the screen elements here. The designers have used subdued colors, "unbusy" graphics, and nice photographic elements of London to create the "atmosphere" for LondonUnlimited.
The darker hues of green and red (as opposed to the hot pinks and yellows on black backgrounds that give us sore retinas at the end of the day) remind us of a dignified British parlour or a well-kept pub. The button roll-overs tell more of the site's functionality, rather than being merely decorative (or worse...distracting). On top of all this, the classy photo bits make the site indelibly British -- and add to the excitement of hearing radio that until recently was inaccessible here in America (we're still thrilled by this)!

The shows are updated weekly. Five popular music channels, a comedy channel, and a soon-to-come video channel promising "London as it happens!" These archived programs are more "radio" than a lot of what is streaming to your PC these days. Well-programmed with great music flow, the shows are delivered by skillful personalities (often more than one) with fun attitudes.


Even the streams sound really good. Though the rate is only 28kps, the sound quality is noticeably higher than most other Internet radio sites, even those with 56kps or wider streams. Perhaps the difference is in the processing or compression processes, done before the signal streams (actually, since the RAIN interns are building their own Internet station, any technical clarification from the knowledgeable readership would be appreciated
here, or click the "Quick Message" box above). Unfortunately, since the video stream is still unavailable, we weren't able to test its quality. But here's hoping the video glimpse we get of "Swinging London" is on par with what we've been hearing!

Simply click the headline at left to bring up a convenient pop-up form!



"Man With Complete Mama's Family Video Library Never Going On eBay Drunk Again "
Read the news story from The Onion's archives here, or visit The Onion's current home page here.


More RAIN coming soon
-- we're writing it now!


Reprinted from yesterday's edition...

These RAIN readers are responding to last Thursday's article (here) on the advent of successful targeted audio ad insertion (on Salem's Christian Pirate Radio)...

"Ad agencies are laughing at us as they get sweetheart deals..."

I have to respectfully disagree with your analysis that targeted advertisement delivery is the crucial element to successful webcasting business models. What evidence is there that people who consume Web media want to be intimately known to the company serving up their advertising? Do you think your Web content is so compelling that they will offer up the demo data needed to make such a concept work on a mass market basis? Look how much damage came about in the supposedly-accidental goof-up around privacy with the RealJukebox.

The mere numbers that would be necessary in terms of listeners and impressions -- even with premium rates -- would mean that only the largest webcast entities could expect to survive in the long haul. That reeks of the current stench of radio group ownership. Webcasting is an industry that will thrive because it isn't well understood by the stodgy old boys of big radio.

For almost five years, I have been involved in this industry and one thing is clear to me from all of the experience our company has tucked under its belt: people want to hear unique, compelling content. And they want to hear it the way they are used to consuming radio, even though it comes out of the computer speakers. The opportunity to make a business in this industry successful must first be based upon delivering something that other broadcast media isn't doing. Then, by having a unique marketplace, you can offer advertisers the opportunity to access a strong psychographic, which is ultimately going to be far easier to do than having demos based on region, age, sex and other marketing preferences.

Stellar Networks' flagship GAYBC Radio Network (www.gaybc.com) has spent less than $50,000 in the past year on promotion. Yet, we are one of the top-2 Talk/Personality Internet-only radio channels according to Arbitron's most recent ranking. Gays and Lesbians are a very appealing vertical psychographic. But, there are hundreds of other niches that will ultimately be winning keys to advertising success.

Don't lose sight of the fact that you already have a tremendous demo -- regardless of sex or geography: your listeners own $1,000 to $5,000 radios, and spend an average of $200/year to tune in (ISP fees). If you just duplicate what radio is already doing, or a CD jukebox is capable of, why waste your time and your investors money?

Ad agencies are laughing at us
as they get sweetheart deals to reach our lucrative online audiences because we're letting them run us in circles. Broadcasters and print media outlets have never had to offer the kind of consumer results that we do. Targeted ad delivery is a prison wall we are erecting around ourselves because, like most Web businesses, most in our industry have not learned how to be . . . patient.

Our opportunity is to be to radio what cable was to broadcast television. The spot delivery model doesn't need improvement, and it's just an excuse used by agencies who still don't have a clue as to how valuable streamies are in general. Time will change that.

  John McMullen
Chief Programming Officer
GAYBC Radio Network
Stellar Networks, Inc.


"We have a major evolutionary step forward in advertising..."


RadioWoodstock and WoodstockTV are looking into various methods of targeted video and audio ad insertion for our 5 full time streaming audio channels with live DJs and our full time streaming video channel. Targeted ad insertion is an example of how Internet radio has a major advantage over terrestrial stations. The key is that advertisers and agencies have been working on the targeting concept for TV for some time, but digital set top box roll-out, necessary for targeting on TV, hasn't happen as fast as originally thought. Advertisers and agencies already know how audio and video ads work. So it is a logical migration to the streaming environment on the Internet, which is delivering on the promise of targetability before before TV can.

For RadioWoodstock, we added the advantage of being able to have our live on-air DJs back promote national ads that go to all listeners. For example, if we air an ad for a new Pontiac Firebird, our DJs can motivate listeners to go to the Pontiac website by actually being on the Firebird website and talk about the cool feature that allows the visitor to manipulate a 360 degree view of the interior and exterior or be on the PCFlowers.com site and mention how you can create a gift reminder so you'll never miss Mother's Day or your anniversary again. The only thing terrestrial radio has that is even close to this interaction with listeners is to hopefully air an ad for a store in a local mall when the listener is actually driving to or near the mall.

Add in the mix the tremendous accountability with the Internet and streaming media that traditional TV and radio can't even come close to matching and we have a major evolutionary step forward in advertising that goes to targeting, one-on-one marketing and beyond.

  Richard Fusco
RadioWoodstock.com




September 12-14 Digital Coast 2000, Los Angeles, featuring a panel on Internet radio moderated by RAIN's Kurt Hanson
September 20-22 Gavin.com: Music on the Net, San Francisco
September 20-23 NAB Radio Show, San Francisco
Sept. 29-Oct. 1 MOBE/Internet & Technology, Chicago
October 5-7 Billboard/Airplay Monitor Seminar, New York
October 9-12 QuickTime Live! Conference, Beverly Hills
October 10-12 Streaming Media Europe 2000, London (NEW!)
November 5-7

NAB European Radio Conference, Berlin

November 12-14 Canadian Association of Broadcasters (CAB) "Broadcasting 2000: On-air / On-line," Calgary (NEW!)
Nov. 28-Dec. 1 Radio Ink Internet Conference, Santa Clara, CA, featuring a brand-new national study on Internet radio usage presented by Eric Rhoads & Kurt Hanson



xxx  

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