RAIN: Radio And Internet Newsletter

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Between covering Feed the Monster's collapse, Clear Channel's obfuscating

contest rules that aren't documented on their websites, Mark Cuban's rants against the RIAA, and all the other action that's been going on in the worlds of radio and the Internet lately, we haven't had time and space to run all of the excellent and insightful "RAIN Reader Feedback" that our readers have been sending us lately.

Thus, we hereby designate today as the first-ever "RAIN Reader Feedback Day!"

We'll start it out the morning with feedback pieces we've received over the past couple of weeks, and we'll publish a follow-up later this week with new comments and opinions that are contributed today. Of course, we welcome your opinions, too! (To send us an e-mail, simply click here.)

For each topic below, we'll begin with a link to the original RAIN story (click the screenshot), followed by some of the reader feedback we received...

9/21/00:

About three weeks ago, frequent RAIN contributor Bob Bellin wrote an guest essay about the Digital Millennium Copyright Act -- calling it "a poorly conceived law rushed through Congress" and arguing that Hilary Rosen and the RIAA "should not be vilified for milking it for all its worth." (Click screenshot at right to read the original essay.)

Several RAIN readers had additional observations to contribute:

"The law is not there for the benefit of the music industry..."

In all this hullabaloo, everyone has been assuming that the rules are static (even if unclear). Reality is there is no

God-given right to sue for copyright violation. That right was created by Congress because in their wisdom they determined that it was to the benefit of the common interests of the citizens of the US. The law is not there for the benefit of the music industry, but for the rest of us. They are just incidental beneficiaries.

Within Congress this issue is controlled in large part by the Senate Judiciary Committee. Senate Judiciary Committee is pretty much under the complete control of Sen. Orrin Hatch, R-Utah, its chairman. Orrin Hatch has sent a letter to the court hearing the Napster case. It pretty much indicates that if he favors at least some elements of Napster's case.

Curtis Sahakian
cpart@corporate-partnering.com

"Stifling growth and preventing... choice is considered illegal..."

Aren't webcasters already paying BMI, ASCAP and SESAC (who have been more than fair -- to this point)? Just

because the technology allows webcasters to do things that the radio can't doesn't give the RIAA or anyone else the right to charge them out of business.

You can tell the RIAA has no business sense. How? Here they have a huge new potential future industry to generate revenues far into the future. It's at its early, early stages. Rather than make a little from a lot, they want to "gas it" to death now.

Stifling growth and preventing consumers from choice is considered illegal...

"Deep background"

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10/11/00:

Last week, the CBS/Infinity websites designed (and owned?) by Feed the Monster were pulled down for about 24 hours. As it turns out, that was apparently part of a last-ditch effort by FTM to collect something they were owed by their clients -- either signed contracts, or cash, or some kind of other concession.

This RAIN reader who seemed to know the details of the situation offered the following insights:

"The [CBS/Infinity] stations abused the weak executive team..."

Everybody is at fault. [Top FTM execs] didn't execute the business model. They were

more interested in their personal vendetta against board members and suffocated the company by creating a managerial bottleneck due to their fear of losing power. Both don't understand the Internet world and try to implement that doesn't work in the new economy.

The buddy system is alive and kicking but it might have destroyed the Monster. Their sales results were miserable and lead partly to this mess.

On the other hand, all the stations abused the weak executive team, using unsigned contracts, unclear ad rates and unclear marketing efforts to increase the stations' revenue and leaving FTM with the remains. A new executive team, a renewed commitment by CBS and a new business model will turn this mess into a success -- if it's not too late already.

"Deep background"

"When it takes three days for FTM to add some simple content..."

I had to laugh when one of your readers noted that FTM has "continually bent over backwards for all of their

clients" because I know of at least one Infinity employee who has been extremely frustrated by how long it has taken FTM to make simple content updates to their station's website, among other things.

Perhaps the station concerns I know about are an aberration, but they are serious concerns nonetheless...especially when it takes three days for FTM to add some simple content like "Hey, we're giving away tickets to such-and-such's concert."

Customer service issues aside, it seems that FTM has had some difficulty in filling key positions within their company... That's never a good sign. I think this thing might have been a stunt, but not for publicity. Instead, it was probably FTM's way of telling the Infinity stations that they could easily inflict some damage to their stations by yanking the sites if they don't get what they want.

"Deep background"

"Radio guys may not be the best for web sites..."

It's "another one bites the dust." And it proves that even people who most of us regard as "smart guys" can't seem to make the radio/Internet marriage work.

Perhaps the lesson here is that radio guys may not be the best guys to go to for web sites. Not that I know who to go to... Maybe we just need to stand by for the next two or three shake-outs and see who's left standing after the new year.

Mark Edwards

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09/29/00:

Last month, a "RAIN Website Design Clinic" featured Vancouver's XFM (CKVX), with RAIN's Paul Maloney noting, "Face it, in a world where 'image is everything,' a professional design job lends so much more 'cred' to a station than paying your part-time promotion intern a couple bucks to exercise his limited HTML skills." (Read the original piece here.)

Here are some of the responses we received...

"We are proud of what we have achieved..."

Thank you very much for the positive response on our web site. I appreciate your advice, and we are looking to

take some of your suggestions and implement them.

I have to say, that when we went in to Blast Radius to discuss the vision of our site, a few key words came to mind: Clean, easy to navigate, and progressive in nature. We really were concerned in not being a station with a typical "banner-ad" heavy web site. We wanted ease on the eyes for those checking us out in the wee hours, as well as the middle of the day. We wanted clear information, tasteful colour, and maturity in our presentation.

As you know, a launch of web site can be quite taxing. We are proud of what we have achieved... Just wait to see how we progress.!

David Hawkes
Director of Marketing & Artist Relations
XFM Web site Co-ordinator

"Great piece! I couldn't agree with you more..."

Great piece! I couldn't agree with you more on your site review. I feel that this is an area that has been largely ignored in our industry. So many stations feel that letting an intern throw up a cookie-cutter website will draw their listeners.

It also gives us a chance to see what others are doing. [Another trade publication] is making a valid attempt, but your reviews are much more detailed and to the point! Keep up the great work!

Mark Boarman
www.wkdd.com
Website Development/Coordinator

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10/03/00:

"In an environment in which consumers are being offered more media choices than ever before -- including thousands of Internet radio stations today and 200 channels of satellite-delivered radio soon -- Infinity-owned WCKG/Chicago is running commercial breaks on "The Howard Stern Show" that can run over 15 minutes in length and last week sometimes contained more than 35 commercials in a row!"

Apparently WCKG is not alone in loading up Howard's show with spots, as the following reader feedback indicates:

"Are people missing large chunks of the show?..."

I have a 20 minute commute to work. Many, times I tune to the station (that carries Howard Stern) just to

hear commercials, flip to another station, check back, still commercials, etc. I have arrived at my work while the show is still in commercials, never actually getting to hear the Stern show at all. That's usually 18-20 min. of commercials! I have learned if I hear commercials when I tune in, don't bother tuning back for at least 15 minutes.

What is the original broadcast show airing? Are people missing large chunks of the show so that local stations can cram their stupid commercials at us? Or is NY also going away for 15 minutes?

Donna Leeds

"Then it's break time til I arrive at work..."

I notice a very similar pattern on WJFK in DC. I'll get in the car and catch about 2 minutes, then it's break time 'til I arrive at work...where 99% the break is still going on..and on..and on.. 'BCN in Boston, when they ran the show at night, had at least 12 minutes per break.

"Deep background"

"'Analog' radio is sewing the seeds of its own demise..."

"Analog" radio is sewing the seeds of it own demise. Because they are publicly held companies

living and dying quarter to quarter, they need to show continual revenue growth. How do you do this when your audience is eroding and rates are at an all-time high? Simple, continue to add one unit each hour during peak listening, until you come up with all commercials, all the time.

There comes a point when you can't add another commercial. I think investors are now beginning to realize this and it has been reflected in radio stock prices.

Rob Drucker
MediaAmerica.com

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10/9/00:

In announcing layoffs, the firm's VP/Business Development, David Giunta, told RAIN that it was recent internal productivity improvements that made it possible for the firm to let go about ten of its 20 employees -- while retaining most of the company's senior executives.

One of the firm's competitors, an Internet-only alternative station, contributed the following observation:

"Good quality content there I'm sure..."

Can't wait to hear a station where they "can now program two weeks in advance for three to four of our channels in a half-hour" and fire half their music programmers but keep all the senior staff. Loads of good quality content there, I'm sure.

Wanda Atkinson
3wk.com

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November 5-7	NAB European Radio Conference, Berlin
November 12-14	Canadian Association of Broadcasters (CAB) "Broadcasting 2000: On-air / On-line," Calgary
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
February 1-4, 2001	RAB 2001. Details coming soon.

xxx

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