BY KURT HANSON
Another milestone in Internet radio occurred this week as Bonneville's WTOP/Washington, DC launched the first Internet-only All-News radio station -- a "side station" version of WTOP named "WTOP-2" targeted at Federal employees.

WTOP's VP/News & Programming Jim Farley (pictured below) explained to RAIN, "Actually, it's got two thrusts: First, it's designed to appeal to any news junkie -- it's got world and national news, but not local news or traffic or weather, so if you're in California and you're a news junkie, this will appeal to you. Second, it's designed to appeal to Federal employees, military, their families, lobbyists, Beltway bandits -- any of those people who make their living in or around the Federal government or Congress or the Supreme Court or the White House."

The station's positioning statement, "Federal Line. Online" refers to a 30-second-long news feature on WTOP called "Federal Line" -- news of interest to government employees -- that has drawn attention and e-mail, Farley explained.

WTOP-2 is programmed live during the hours when the Federal government is active -- roughly 8AM to 6PM on weekdays, Farley told RAIN, and primarily features live feeds of briefings, hearings, and press conferences. During other hours, WTOP-2 runs the AP's all-news product. (The site is a partnership with AP, with the AP participating on a revenue-share basis, Farley said.)

Staffing for the station is provided by WTOP.com's four full-time people (plus some part-timers); the anchorperson for WTOP-2 is part of that unit and they are her back-up, Farley explained.

What's the business model for WTOP-2? The site is sponsored by four charter advertisers -- A&T Systems, Hewlett-Packard, GTSI, and Litton/PRC -- each of which targets government employees. Each advertiser has made a six-month commitment to the site with a six-month option to renew; if they renew, it will be a commitment in the six-figure range. In exchange for their commitment, the advertisers are receiving one :60 per hour on WTOP-2 -- plus a link on the station's website, plus mentions on promos that run hourly on WTOP-1.

Scott Levy, who is in charge of the Internet efforts for Bonneville's three stations in the Washington, DC market, noted, "We've been making money our Internet venture since Day One, which is kind of unique." He also noted that "the Internet division here will bring in revenues of over a million dollars this year -- and that's just on the Internet."

WTOP-2 is Bonneville's first "side station," following in the path of similar music-based efforts at WRIF/Detroit and Star 101/San Diego. At last week's Gavin convention, however, Bonneville-owned WTMX/Chicago PD Barry James announced plans to launch several brand-extended versions of "The Mix" as Internet-only radio stations in the near future as well.



Radio Ink has a nice interview with Scott Levy here.

Department of Viral Marketing: If you have friends or colleagues that you believe might enjoy reading RAIN, please click here and we'll help you them about us. Thanks!

In this week's Guest Essay (here), Bob Bellin expresses his disappointment with the quality of most Internet-only music broadcasters. Readers, as you might have guessed, had comments.

I don't believe people will flock to audio on the Internet if it is the same as the formats and types of programming they can get in their own markets on traditional radio.

The real opportunity is to create new fresh approaches just like FM radio did in the late 60's when AM radio became predictable and stale.

I totally agree with Bob's statement about how Internet-only radio sucks. I have listened to many different formats and haven't found anything that closely resembles anything today's Internet user would want to listen to!

That is where real radio stations have the advantage, as they employ professional programmers already. These programmers are in tune to what people want to listen to and have the best access to all the newest music as soon as the labels release it.

The only thing better than a real radio station broadcasting on the web is a radio station that seperates the terrestrial station from the Internet station to give it a totally global sound.

At www.93x.fm, we have been doing this for over 6 months. I am the Program Director of KNSX St. Louis, and www.93x.fm. We play a true alternative format. I invite you to check it out; you will not be disappointed.

You are dead right. Internet-only broadcasters seem to think that a jukebox approach to music or streaming personal selections is the answer.

The truth is that people listen to radio (1) for information, (2) music genre and (3) personalities. They rank these in the order I outlined.

An Internet-only station should be programmed the same way a successful AM or FM station is done. That is why our company will be introducing our niche-format Internet-only station only when we are sure that the programming meets this criteria. That is why we are only streaming RealJazz 740 currently. Only, and I repeat, only when we are sure the format delivers everything a radio listener wants on an international basis will we start streaming.

The old adage is true: "Content Is King".

Kurt: Saw you at the Gavin, but (sorry to say) I didn't get a chance to speak with you. I hope your road trip went well.

I wanted to respond to part of Bob Bellin's essay on Internet radio. Without getting into addressing each of his points, I will say that I agree that many Internet-only radio sites do suck, but I must take issue with his assessment of NetRadio.com's Programming staff, based only on a quick look at the bios of our management team.

NetRadio's staff of music programmers have an average of over 20 years of experience in radio. Check out our FAQ section (here) or each individual channel page to learn more about our programmers. Our mainstream channels (Country, Top 40, Smooth Jazz, etc.) are programmed much like traditional radio stations, while our niche channels (Chant, Zydeco, Acid Jazz, Hawaiian, etc.) are programmed by genre experts, most of whom also have radio backgrounds. We are proud of the caliber of programmers we have handling the various (120!) styles of music that we offer.

NetRadio.com has been entertaining listeners on the Web for nearly 5 years, while we have seen many competitors (who DID suck) go out of business. As in all industries, the market will decide how many Web-only radio sites will survive; and Bob is right about one thing: Great programming will always win.



Add your opinions here.

In last Friday's issue, from the RAB in Denver, we reported on the negative audience reaction to the keynote speech given by AOL's Charlie Warner (here). One reader wrote:

As far as Mr. Warner's speech goes, let it be a warning to radio broadcasters:

Don't partner with the internet. Become the internet.

As of now they do not have the beef when it comes to programming, but they will when they steal great radio people. Instead of letting the internet take the lead, transition your radio station into a two-address medium. The dial position and the web position. Don't give it to them, don't trade with them and don't sell it to them. Become the internet.

The compliment of radio and the internet, when used properly, can help you grow dollars for your company, not for an industry that is trying to steal your listeners and advertisers. Internet radio guys are the enemy.

Don't give in. Don't give up. Take control.

Finally, yesterday we wrote about a new device from Xenote that promises to let consumers "bookmark the world," starting with radio. (Read it here.) Here's what two readers wrote back:

Kurt: To take your observations point by point:

1) It's a cool-looking little device, but this seems like it's technology-driven rather than need-driven, doesn't it?

If you want to talk about a technology-driven product, consider a $300 Internet radio that requires a constant physical connection to the Net and only plays stations that are either selected by the manufacturer or which are compatible with the audio codecs that the manufacturer chose to support. Talk about the pot calling the kettle black.

The Xenote "clicker" is a great way for tracking songs that you hear, you'd like to buy, but you're not sure that you'll stick around until the station gets around to telling you what you're listening to. The other uses are a little doubtful right now, but I can see uses for contests and other semi-interactive applications. For the radio station, it provides near-term feedback - -if a lot of listeners are indicating that they want to listen to or buy certain tracks or artists, the PD can change his/her programming accordingly.

2) Also, I need to ask them, What's the business model? Who pays for the device? Where's the revenue to anybody?

My understanding is that at least one part of the revenue model is e-commerce (sales of CDs played by the station). I don't know who pays for the clickers, but I assume that the clickers are subsidized by the station (in order to get listener feedback), the e-commerce vendor (who may or may not share revenues with the broadcaster), and Xenote, which gets a dandy database of listeners and can track their listening and purchase behavior far more precisely than any diary. That seem to be pretty valuable to marketers (ask DoubleClick.)

3) And if KKSF/San Francisco is one of the stations participating in the test, why is there no mention of it on their website?

The two Xenote clickers I have are stamped with the KKSF logo on the back, and the prototype website tracks the KKSF schedule quite well, thank you. (I'm a participant in the Xenote market test, but I have no relationship with them other than being a beta guinea pig.)

Kurt, I really don't understand why you didn't simply talk to Xenote and ask them your questions before you went to press. Your observations certainly cast untrue aspersions that KKSF isn't participating in the test.

Best wishes,
Len Feldman

Add your opinions here.

If you haven't "checked in" as a reader yet, we'd really appreciate hearing from you. We'll also send you e-mail news updates when important news breaks. To subscribe to our e-mail updates/reminders, just send us a brief note with your name, company, and any comments you'd like to make about RAIN by clicking here.

Part Two:

Click here for RAIN News Archives
Looking for Part One of the "RAIN Guide to Internet Audio?" Go to the bottom of this page for the latest version.