RAIN: Radio And Internet Newsletter

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From the press release: "Comedy World, an entertainment network that produces and broadcasts live talk radio programming, announced it has secured $20.5 MM in series B financing. The financing was led by New York firm Moore Capital Management, Inc., and included Silicon Valley venture capital firm Attractor, who led Comedy World's series A funding in January, 2000...

"A portion of the funds will be used for marketing and sales activities to secure and implement terrestrial

radio, television and cable syndication opportunities.

"Comedy World recently announced a distribution deal with Sirius Satellite Radio Network and partnered with Burly Bear Network, the premier media and marketing company dedicated to the college audience, which currently reaches more than 560 universities. The deals position Comedy World across multiple distribution platforms and enable the Company to distribute its content to a broad young adult audience."

Read the entire press release here.

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RAIN first reported on the imminent demise of New Orleans-based webcaster FastBand GlobalCast back on September 28th (here). The company officially shut its doors the next week (reported here). RAIN's reports and analysis on the topic spurred a wave of emails from former employees and competitors. Christian Unruh was kind enough to share his insight on the situation with RAIN.
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BY CHRISTIAN UNRUH
Several employees of FastBand.com, and the staff at RAIN, have given their interpretations of why

FastBand GlobalCast struggled to stay afloat, and eventually failed.

The business model has been questioned and criticized by several of the air-staff who competently conducted their airshifts (4 hours a day.) They looked at the GlobalCast from the narrow vision of their past experience with the proven model of AM and FM radio -- namely a specific format delivered to a carefully researched audience in a static location.

Yes, FastBand could not have been farther from that model -- but that does not prove the model was flawed. The owners of FastBand were not a huge radio conglomerate or media company but two men with more nerve -- though perhaps not more ego -- than the jocks you heard from.

Like many Internet start-ups, they knew theirs would not be profitable for at least 3 years and they were prepared to go the distance, selling shares in another company of which they owned a large percentage: Independent Energy. When that U.K. company's shares tumbled due to unrelated human error (see NASDAQ INDYY), they simply could not raise any more money to continue the vision.

With dot-coms falling out of favor generally, the NASDAQ slumping and with Napster facilitating millions of copyright violations, there were parts of the business model that did not look attractive to any outside venture capitalists.

To those who asked how you could be a broadcaster, a record store, a record label, and an Internet music

site all at the same time, I would answer: Look at America Online, who are soon to be all those things -- and with even less "focus."

"What is your target demo?" we were asked time and time again. It's difficult and simple at the same time: "People who want hip, fun, interesting, informative programming that they are not getting from cookie-cutter pop and alternative radio stations. People who have an interest in music and news from other parts of the world. People who are educated and too cerebral for the embarrassing blather I hear from most radio DJs."

Our "target demo" was anyone with a computer, anywhere in the world, who wanted to hear good music from artists regardless of record label or country of origin. They could also interact with the DJ, each other, and the artists we had for interviews and performances in the studio (Groove Armada, Goldfinger, Stroke 9, Kittie, Travis, Dido, Chris Perez, Sergeant Garcia spring to mind).

We were not playing "obscure indie music" but great pop music from around the world with a smattering of unsigned artists thrown in -- like David Gray.

The medium was eventually to be six Internet connected studios (with street and studiocams) operating from different spots around

the globe (starting with New Orleans), giving us a physical presence and exposure -- as well as a brick and mortar retail store for physical passersby.

FastBand was closer to realizing the dream than it might appear. Every day we would receive emails from new listeners literally all over the globe who could not believe what they had stumbled upon or heard about from friends. David Gray was part of our roster before his record deal. A version of "Who Let the Dogs Out" was played (I do apologize) and for sale on FastBand 18 months ago.

Had we been able to advertise and market the product our user base would have increased exponentially and the advertising and music sales revenues would have kicked in about the time we imagined -- still 18 months from now.

In summation, the plan was derailed not because of the high cost of French Quarter real estate or overpaid jocks -- but unforeseen circumstances and no contingency plan. We were not

even accepting advertising yet and had just begun to market the site.

I firmly believe people are fed up with FM radio and are looking for something better. I am a big believer in XM Satellite Radio for this reason. I also believe that eventually there will be other record labels on the web with their own streamed entertainment channel(s). And lastly, I believe that while niche, compartmentalized programming is necessary in most cases...there has to be room for something that combines the best and most interesting of the new music out there.

FastBand may prove to have been simply an early attempt that failed due to inadequate capital and circumstances beyond our control.

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Christian Unruh managed music, band and label relations for Fastband.com. For the past 5 years he has also worked for independent record promotion company A.R.M.S. (Alternative Radio Marketing Strategies) Division. He was Program Director of WZRH and holds a law degree from Tulane.

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From InternetNews.com: "Telecommunications provider IDT Corp., parent of Net2Phone Inc., revealed Monday that it will shoulder its way into the television game with the creation of broadband

television channel TV.TV...

"IDT said the TV.TV network -- which is scheduled to be operational in multiple pilot markets by the end of the year -- will offer free, on-demand television supported by targeted advertising, pay-per-view events and subscription services. The company said TV.TV will also be a new distribution outlet for the broadcast, cable and home video industries.

"Accessible through cable modems, DSL, digital cable set top boxes or wireless services, the network will feature archived and live content including classic and contemporary television shows, feature-length movies, live performances from musicals to sporting events, animations and documentaries.

"However, TV.TV will not be the first to create a broadband entertainment network. The short-lived Digital Entertainment Network offered original programming, as did Pseudo Programs Inc., which filed for bankruptcy earlier this month. Medium4.com runs six Internet-only networks with 100 channels -- including many foreign channels. ImaginOn Inc. is streaming 21 channels. Quokka Sports' broadband network offers numerous sports programs, and USA Networks recently streamed coverage of the U.S. Open. Many others have gotten in on the act, and even the major networks are testing the waters."

Read the InternetNews.com story here.

From the AP: "The National Music Publishers' Association Inc. and MP3.com Inc. have reached a

preliminary settlement that will make more than 1 million musical compositions available on the popular My.MP3.com.

The three-year agreement calls for MP3.com to pay up to $30 million to the association's licensing unit, Harry Fox Agency Inc., MP3.com said Wednesday.

The publishing association had sued MP3.com in March over the use of its members' songs through My.MP3.com, an Internet service allowing users to listen to music from CDs they already own or which they purchase from MP3.com's retail partners.

If the settlement is approved by individual HFA music publisher-principals, NMPA will drop the lawsuit.

Read the story here.

"Teen Lands Job With Fortune 500 Company"
"As drive-thru cashier, will directly handle portion of company's projected year-2001 revenue of $14-billion."
Read the news story here, or visit The Onion's home page here.


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.

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