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   January 17, 2000
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Last week, this newsletter wrote about a couple of U.S. radio stations (including L.A.'s "Groove Radio") that disappeared from the broadcast dial as a result of format changes only to eventually return to life as Internet-only radio stations.

Today, in London, for the first time that I'm aware of, the reverse is happening, as an Internet-only Webcast moves from the Web onto the airwaves.

National commercial radio station "TalkRadio" was scheduled to change format earlier today to an all-sports format, under the name "TalkSport 1089/1053."

Previously, the sports-talk format had been offered by TalkRadio as an Internet-only Webcast called "TalkSport.net" on a website that also included comprehensive U.K. sports coverage. (Click logo above to visit the site.) The Webcast was positioned as "The U.K.'s first all-sport radio station."

This seems to me like a development with significant implications, which we can discuss here in coming days. You can read a story on the new format from BBC News here, but note that the BBC's Radio Five is a competitor of TalkRadio and now TalkSports. (RAIN's reader feedback form, via which you can contribute your comments and insights, is here. And if I've missed other examples of this phenomenon in the past, please e-mail me here.)




BY KURT HANSON
According to an article last week in Streaming Media News, "A new consumer study by ZD Labs shows digital music in the Microsoft Corp.'s Windows Media Format sounds more like CD-quality audio in half the size of MP3."

This issue is particularly relevant to radio stations who want to either (A) offer archived material or (B) set up an Internet-only variation of their station (as, for example, KFMB-FM/San Diego and WRIF/Detroit are doing).

The article continued, "In an experiment reminiscent of Coke and Pepsi taste tests, Ziff Davis's ZD Labs conducted a study that compared Windows Media- and MP3-formatted content to original CD recordings. The study found that when compared to the CD-quality originals, nearly 90% of consumers tested preferred or could not tell the difference in quality between music in the Windows Media Format and songs in the MP3 format that were twice the size."

My background as a researcher tells me this: The language they're using makes it look like they're trying to be deceptive (or at least misleading). Let me explain.

You'll notice that they've collapsed two categories of responses into one:

    Prefer Windows Media format
90%
 
    Couldn't tell the difference  
    Prefer MP3 format
10%
 

This is kind of like an SAT test: "Based on the information provided, can you conclude that consumers prefer Windows Media over MP3?"

The answer is "No."
Based on the information provided, it's theoretically possible that the findings really came out something like this:

    Prefer Windows Media format
2%
 
    Couldn't tell the difference
88%
 
    Prefer MP3 format
10%
 

If that was the true set of findings, you'd obviously draw a different conclusion from the study than the person who wrote up the results of the study wants you to draw. (As near as I can tell, ZD Labs conducts its tests on assignment from specific companies -- and in this case, I'd assume the client was Windows Media.)

Of course, the fact that Windows Media files are half the size of MP3 files is still an advantage. As Dave Fester, director of marketing for the Streaming Media Division at Microsoft, noted, "Using Windows Media, consumers can overcome the storage barriers on music devices and double their digital music storage by getting two hours of CD-quality music on a 64MB portable music device, compared to only one hour using the MP3 format." That's a valid point.

Streaming audio test

The above findings refer to tests of archived material. In a test of live streaming, the article reported, "Results showed that 97.6% of test participants responded that the music created with the Windows Media Audio codec sounded more like the original than the music created with the RealNetworks/Xing MP3 codec."

Here, I'm just credulous. That's an amazingly high number. It's hard to get 97.6% of consumers to agree to anything! (I don't think you could get 97.6% of consumers to agree that a steakburger from The Palm tastes better than a hamburger from McDonald's.
)

Feel free to read the source material and judge for yourself: The article from Streaming Media News is here. If you have any insights, please feel free to share them with us here.



Lots of articles in the press in the past few days have dealt with AOL's purchase of Time Warner.

Click here for links to some of the best of them. (Reprinted from RAIN's weekend edition.)




Arbitron's second InfoStream ratings report for streamed audio Webcasts, for the month of November of last year, is due to be released today or tomorrow, according to Joan FitzGerald, director of marketing, Arbitron Internet Information Services.

InfoStream's first report measured listening to the 240 Internet audio channels being streamed by ABC Radio Networks, BroadcastAmerica.com, LaMusica and Magnitude Network. This week's report should include measurement of the stations streamed by streaming provider OnRadio and the 120 channels of InfoStream's first Internet-only Webcaster, NetRadio.

The October report was met with general cheerleading from the press -- e.g., "Internet adds 1.3 million hours of radio listening!" This newsletter put the numbers in context by pointing out that New York City radio listeners alone contributed 1.5 billion hours of listening to broadcast radio that month.

Upon doing a bit of analysis of the numbers, this newsletter revealed that the average Webcast measured by Arbitron had an AQH of only 9.7 listeners -- and that dozens and dozens of the webcasts had an AQH of less than one listener.

Click here and here and here to read the original stories and here for reader comments on those stories.



Click on the logos above to go to the corresponding sites. Contribute your suggestions for additional sites here. For some screenshots of various audio players, click here. For a sample full-page view (about WWW.com), click here. More coming soon!



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