March 22, 2000
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Now you can easily click through previous issues of RAIN by using the blue arrows to the left and right of the issue date. This navigation element has been added retroactively to all of March's issues.

(Thanks to RAIN reader Jim Smith for suggesting the idea)


In a comprehensive, multi-part story last Sunday, the Gannett-owned Cincinnati Enquirer newspaper ran a detailed profile of Clear Channel Communications and the changes it is bringing to the radio industry.

While the overall tone of the article is not particularly favorable to Clear Channel ("Clear Channel is 'the company that made radio unlistenable,' says Bruce Drushel, a Miami University broadcasting professor and assistant chairman of mass communication studies"), there's an incredible amount of fascinating detail on how Clear Channel is using digital technology to change the way radio does business.

Some of the most interesting points are excerpted below, but I encourage you to read the entire four-part article on the Enquirer.com website here.

"Big radio airs the sound of sameness"
"Radio has changed radically from a decade ago, when federal law limited companies to one AM-FM combination in each city, and each had a distinctive sound...Now, Clear Channel Communications, the largest radio company in the world, is engineering the next step.

"Building on a radio empire it bought from Jacor Communications here last year, Clear Channel is using digital technology to create virtual clones of stations coast to coast.

"'We are continuing Cincinnati's tradition
of being on the cutting edge,' says Randy Michaels, former Jacor CEO and now president of Clear Channel's radio division..."

"Local" from far away
"It's shortly after 10 a.m. in Rochester, N.Y., and Randi West is explaining to her Kiss106 listeners how they can win Ricky Martin concert tickets. At the same time, she's telling listeners in Louisville how they can win Britney Spears tickets. She's chatting with a caller to her Toledo show, promoting a lunch giveaway on her Charleston, S.C., station and promoting a free 'spring break' trip to her fans in Des Moines. She does all this while hosting the mid-morning show on Cincinnati's WKFS-FM (107.1) from the Kiss107 studios in Mount Auburn, thanks to a digital computer network linking the six Clear Channel stations...

"Because most of this cross-utilization of talent occurs on music-intensive formats, DJs only need to fill about two minutes an hour, spread over four or five breaks in the programming. Customizing comments for 'a four- or five-hour show can take anywhere from 25 minutes to an hour,' says [Gary Jeff] Walker, who became Cincinnati's first DJ to use the technology three years ago..."

Bigger prizes, longer odds
"It sounds so easy: 'Just listen and win.' But the odds against winning Clear Channel contests have leaped exponentially since 1998, when the company initiated 'group contests' conducted simultaneously from coast to coast...

Playing chess with stations

"Nationally, radio listening has steadily declined in the past decade. Only 15.4 percent of the population age 12 and older regularly listens, down from 17.5 percent in 1989, according to analyst Duncan's American Radio. Thom Moon, Duncan's research director, blames, in part, “much higher commercial loads and not as much programming innovation...”

More excerpts tomorrow --
or you can read the entire four-part Enquirer series here.

Department of Viral Marketing:

If you have friends or colleagues that you believe might enjoy reading RAIN -- e.g., friends who work for Clear Channel -- please click here and we'll help you them about us. Thanks!



WebRadio.com announced this morning that it has entered into a multi-year deal with Infinity-managed radio network Westwood One to offer audio streaming and e-commerce services to the network's 24/7 music format affiliates.

Under the terms of the deal, Westwood One will immediately receive a 6% stake in WebRadio.com. WW1's ownership position may grow to 10.5% based on their performance in signing up affiliates.

WW1 has over 1,000 affiliates to its eight full-time music formats, according to WebRadio marketing director Scott Zafran. (Click here for WW1's description of its eight formats.) Under the deal, WebRadio may set up individual websites for each of those stations.

"Just as we're a turnkey streaming provider, giving stations all the tools they need to stream, Westwood One is a turnkey provider for their business," Zafran explained. "In essence, Westwood One has brought to the table a group deal for all of their affiliates, so they don't have to negotiate pricing -- they've got them 'favored nation' pricing."

WebRadio.com,. a subsidiary of GEO Interactive Media, offers a "plug-in-free" Internet broadcasting solution that uses a Java-based technology called "Emblaze" in place of RealAudio or Windows Media Audio and says it has a client list of about 200 radio stations.

Westwood One is managed by Infinity Broadcasting (CBS's 82%-owned radio arm), which owns about 28% of the company.

Pictured: WW1 SVP/Affiliate Sales and New Media Peter Kosann; WebRadio.com President Hamid Kohan; WW1 President/CEO Joel Hollander and WebRadio.com CFO Joseph E. Budenholzer.







BY KURT HANSON
In the world of cable Internet access, there's something called the "last mile" problem -- how to get a fast connection that final mile of distance from the supplier's network to the consumer's house.

In the world of Internet radio, I believe that there should be something called the "last ten yards" problem -- how to get an audio stream from the user's computer to his or her home stereo. When that problem's solved, consumers will have the ability to listen to webcasts on a quality sound system rather than on the tinny speakers that come with most home computers.

One firm that's developing an answer to that problem is a Silicon Valley-based startup called Sonicbox. They're working on a system that allows consumers to listen to webcasts on any stereo in their house -- with the ability to change stations via a wireless remote control...

Read the full story
in yesterday's edition of RAIN here.


Drew Bennett: "Being an internet only station owner, I think the Sonicbox is very cool. I'll have one when they show up in stores, but I don't see it being a huge seller. Internet radio is going to take a few more years to get to everybody. Only now is it becoming the next alternative "format." Don't look for Sonicbox to come out full speed but do expect it (and others like it) to be around in the not so distant future."
Alan Reische: "It does make a lot of sense if the listener has some control over content. if I'm buying a device which is filled with heavy metal stations just because that (1) reflects the programmers taste; or (2) those stations were high bidder, forget it."
Dan Davornikov: "Hmmmm Looks interesting but what would the FCC think about picking an FM station to transmit locally on? What happens when two people next to each other have a "Sonicbox" in an apartment complex?"
Eric Faison: "Interesting, but isn't this already dated technology with Internet appliances like the Kerbango product? This seems like playing an 8 Track or CD through an FM tuner. Once Kerbango or some other Internet Radio reaches an affordable price point who would need this?"
Robert E. Richer: "Maybe it's just me, but I find that audio streaming is still so far in its infancy as to be almost impractical. By that, I mean that although I am connected to the Internet via a cable modem, many stations will not stay tuned, and will drop out or drop in, as traffic increases or decreases. There is only so much buffering and error correction that can occur, and then..........nothing. I cannot imagine how bad it must be if you're listening to a distant station on a mediocre server by way of a twisted pair. Buying a device such as the one you detail sounds great, but I think a lot of people are going to get disillusioned pretty fast when the signals keep dropping out."
Lou Josephs: "I've been using a 2GHZ device from x10.com for the last 6 months that takes audio from my pc and puts it into my stereo. I'd much rather see a portable device that I can take with me. And Voquette is not the answer..as it barely works."

Contribute your feedback here.






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