BY KURT HANSON
The elaborate and sophisticated websites that L.A.-based website design firm Feed The Monster has designed for seven CBS/Infinity radio stations over the past year and a half are back up again today after apparently being pulled down Tuesday night by the partially-CBS-owned firm.

However, none of the principals involved is talking for the record about what's going on.

Yesterday, FTM's main office in Burbank referred press inquiries to CEO Ron Conquest in the firm's Phoenix office, who chose not to respond to RAIN's call -- as did most other clients and other involved players we tried to reach.

(More later today as the situation warrants. If you have any insights on this situation you'd be willing to share with us, on-the-record or off-, you can e-mail us here. Recent "RAIN Reader Feedback" on this topic follows later on this page.)

...

... Tuesday, shortly before Feed The Monster disclosed its current financial condition and its board member resignations, its stock price (OTCBB:FTMM) fell to $.38 (after previously slipping over the course of the last four weeks from $2 down to about $1), which currently gives the firm a market capitalization of $2.4 million. Earlier this year, Feed The Monster -- at the point when it had four websites developed, with total revenues since inception of $45,659 and a quarterly net loss of $1,557,391 -- briefly had a market cap of $90 million! ...

From the New York Post: "If you've been trying to grab your share of Z-100's $100,000 Thursdays contest, and you believe you're competing just with fellow New Yorkers -- sorry, you're wrong.
"The Post has learned that you are, in fact, vying with contestants in up to 50 states -- thanks to the "synergy" 1,000-station giant Clear Channel brought to New York just days after it took over popular Z-100 and four other radio stations last month.

"Once a day, a motor-mouthed Z-100 (100.3 FM) announcer speeds through contest rules that include two subtle disclaimers: 'This station is participating in a contest with other Clear Channel stations' and, 'Odds will vary based on entries from this and other states.'

"'We feel...that listeners want a shot to win more money, even though it involves other markets,' Fullam told The Post. 'Like Power Ball, they want bigger payoffs.'

"Each hour's $10,000 winner is identified on Z-100 by name only -- not location, as is typical with other radio station contests -- because there's a good chance the winner is from a state far away. Though it's not doing so in New York, Clear Channel was ordered by Florida to include winners' cities and states, and to stop altering interviews to make it seem as though winners are talking to a local DJ."

Read John Mainelli's NY Post article here.

...

... There is a fine line between "show biz" and deception. For example, in the 1970s, promos for Jack McCoy's legendary "The Last Contest" promotion described dozens of incredible prize packages ("A trip for two to Paris...on your own jet") without revealing too explicitly that only one prize package was going to be given away. (But they didn't say otherwise, either.) Now THAT was show biz! But if Mainelli is correct in his description of Z-100's disclaimers -- and I'll bet he is -- this seems like it might be crossing the line. (They don't seem particularly clear, do they?) Along with extremely-long stopsets, this could be another reason for consumers to get fed up with broadcast radio -- thus setting them up to be more open to embracing potential alternatives (e.g., satellite and/or Internet radio). ...

Have an opinion on this story? Simply click the headline at left to bring up a convenient pop-up form -- or click here to use your own e-mail software.

From CNetNews.com: "Microsoft and Sony Music Entertainment Europe, a subsidiary of Sony, said they are collaborating on a European Internet music-video channel.

"The as-yet-unnamed channel, scheduled to debut next month, will use Microsoft's Windows Media player and feature Sony Music artists, the companies said in a statement...

"The European video channel will be available on local Microsoft Network (MSN) Web sites and Sony Music Web sites. It will offer videos, interviews and weekly news on a mix of international and local music artists in Germany, Switzerland, Austria and Sweden. Sony Music's artists include Mariah Carey, Celine Dion, Ricky Martin and Fat Boy Slim."

Read the full CNet story here.



From Business Wire: "Akamai Technologies today announced a streaming relationship with NetRadio Corporation, by which NetRadio will exclusively utilize Akamai's streaming platform to deliver its live music content with enhanced quality and reliability to listeners worldwide...

"'We chose Akamai as our streaming provider for its ability to handle the delivery of our massive streaming requirements without any downtime,' said Rick Hailey, chief technology officer for NetRadio.

"'We realized that Akamai is the only streaming provider that can meet our high quality standards and decided to deliver all of our streaming content across its network. We are confident that Akamai is going to be a key to our continued success.

The entire press release is available here.



RAIN received several pieces of feedback yesterday defending Feed The Monster -- but, oddly, virtually all of them were anonymous. (An intriguing one reads, "There is a much bigger issue at hand that is over your head.")

RAIN's efforts to contact various FTM executives and clients have generally not resulted in returned phone calls and have generated no "on the record" responses.

"FTM was forced to take down their clients' sites..."

You obviously know nothing about the situation. FTM has continually bent over backwards for all of their clients and been there 24/7 for them creating the best award-winning, major market radio station websites available. The fact that they have been building the sites FOR FREE doesn't hold up anymore. Get it right or don't write anything at all.

You obviously don't understand the situation at hand AT ALL, nor why FTM was forced to take down their clients sites and put up that "amateurish" message. There is a much bigger issue at hand that is over your head.

"Deep background" only

"Something is wrong with who we are doing business with..."

Message to all broadcasters: Your Web Services Provider must be able to make money or they will go the way of OnRadio, Magnitude, and now FTM! Doesn't this send a message to us all that something is wrong with who we are doing business with on the Internet?

"Deep background" only

"Was this a publicity stunt...?"

What's the deal? As of 2:30 Central, FTM's site is up and going strong, as are all of the above radio station sites. Was this a publicity stunt? It sure got my attention!

Jeff Dunn

"FTM owns all the sites and can do with them as they wish..."

Your read and the facts of your story are dead wrong. The page is simply a marker and results due to a failure of CBS executives to pull their head out of their ass. FTM owns all the sites and can do with them as they wish, the marker is clear in that respect. All stations were informed hours in advance of marker placement. Perhaps you should call FTM and other concerned parties before running off at the mouth. Why don't you call the president of Infininity and get your facts directly, i.e., Mr. Mel Karmizin!

Please note also that the station's general managers are in support of FTM's position, so it's not as if it's a cheap shot to them, they were fully aware of the consequences of the negotiation process due to FTM ownership of each site.

Monster1010

"I would immediately cancel my contract..."

If "Monster1010" has their facts straight, and "Feed The Monster" told the stations "we own your site and we can do what we want," I know what I'd do if I were one of the affected GMs. I would immediately cancel my contract with a company with so little respect for my product and take my business elsewhere.

On the other hand, that may be easier said than done: Four of the eight stations have FeedTheMonster.com people as their domain name's "Administrative Contact," according to my Whois queries. This means that they can't take their sites back.

To put it as non-professionally as FTM did, these stations are screwed.

Robert Brooks Webmaster, KHYI.com

"Anything to do with the fact that you only have 8 clients?..."

Monster1010, as if your name didn't come right out and say it, it is clear you are an employee. I am curious what you mean by "FTM's position"?

And I am curious, does the fact that you do these kinds of things have anything to do with the fact that you only have 8 clients? Or should we ask your good friend and colleague, Mel?

"Deep background" only

Have a perspecitve on this story? Drop us a note! (Or, to use your own e-mail software, click here.)   Your e-mail address:   Your name (if not obvious from your e-mail address):     Kurt, this is deep background -- don't quote me!         Thanks!

Reprinted from yesterday's issue:

BY KURT HANSON
In a reorganization of its top ranks, respected research guru Gerry Boehme (pictured below, left) is replacing Mike Agovino (right) as President of Katz Interactive, Boehme confirmed to RAIN yesterday.

Previously, the organization was led by a triumvirate of Managing Partners that included Agovino, Boehme, and Mitch Kline. That structure, including the "Managing Partner" title, no longer exists, Boehme said.

"As President, I'm now responsible for both the daily operation and the future direction of the company," he explained, noting, "The interactive space was something that I was concentrating on as part of my overall corporate responsibilities to Katz Media Group, so this represents an exciting opportunity on me to focus on building that division into a real profit center for Katz."

As for Agovino and Kline, "Their corporate roles are currently being defined and that will be announced shortly, and I suspect that both of them will be very heavily involved in interactive as well as other Katz initiatives."

Katz's deals to represent webcasters typically require that the webcaster give Katz a percentage of the equity in the company. "We basically are talking to potential clients about a combination of commission rate and options to motivate our sales force -- and we've gotten great response from people that we've spoken to. All the deals that we've done so far have included those elements," Boehem told RAIN.

Announced representation deals signed by Katz have included NetRadio, Everstream, Akoo, Clear Channel's "NuclearChannel.com" website, and Digacast.

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October 9-12	QuickTime Live! Conference, Beverly Hills
October 10-12	Streaming Media Europe 2000, London
November 5-7	NAB European Radio Conference, Berlin
November 12-14	Canadian Association of Broadcasters (CAB) "Broadcasting 2000: On-air / On-line," Calgary
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