Click HERE to read (or review) yesterday's very special "RAIN Vendor Guide" issue, which reveals the companies that are alive and well and want your business in 2002!

A recent article in the Indianapolis Business Journal (available for a $3 purchase here) profiled Indianapolis sports attorney Jack Swarbrick and his efforts to roll out websites for the LMiV's 185 radio stations.

The LMiV is a joint venture formed in October 2000 by five major broadcast groups -- Emmis, Bonneville, Entercom, Jefferson-Pilot, and Corus -- to create Internet portals for their radio stations. As of last week, despite a $37 million investment from the five companies, "fewer than two dozen" sites were yet operational, according to the article.

"'I enjoy telling people that the only things I don't have experience in are media and the Internet,' Swarbrick said, smiling. 'I love drawing on a blank slate, having someone say "Here's the end goal — it's up to you to figure out how to get there,"'" the piece continued. He is later quoted in the article as saying his goal is to build the LMiV into a $25 million company.

The article attributed to Swarbrick and Emmis chairman Jeff Smulyan the belief that they can make LMiV profitable "by the end of its third year," which is autumn of 2003. But for starters, profitability will take the construction of about 160 more LMiV-powered sites -- which should be complete by the end of March, Swarbrick says.

According to the article, though LMiV originally planned to cover day-to-day expenses with ad revenues only, it quickly became apparent that new revenue streams would be necessary. Swarbrick (pictured above) revealed that fee-based services, and the licensing of LMiV's technology to third parties, are now part of the plan to get the operation in the black.

Finally, LMiV plans to recruit new affiliates. Swarbrick told the paper that he's identified 11 media groups -- representing 500 stations -- as potential additions to the "network."

Bonneville President and CEO (and LMiV board member) Bruce Reese and Gavin business and media editor Doug Wyllie both complimented Swarbrick on his political delicacy in handling a cooperative of distinct interests. "This is a group of investors...who are competitors. That's never been done before," said Reese.

Reese, however, did express some disappointment in how long it's taken LMiV to get up and running, saying "We probably put too much technology into it. If we could go back 14 to 16 months and start over, we probably should have gotten better rein on just exactly what the radio stations needed."

"We built the technology from the ground up...It took us longer to develop the product than I thought it would," admitted Swarbrick.

But RAIN's Kurt Hanson is quoted in the article suggesting that the LMiV could have found solutions from other companies that could have gotten some form of station websites up "in a couple of months." On the other hand, he noted, "they've taken time to build a very sturdy and rigorous infrastructure," and that it's possible that the future may show "that slow and cautious was the way to go."

The screenshot above is from the article.

..

... The LMiV was conceived two years ago as a response to Mark Cuban's success in selling Broadcast.com to Yahoo! for $5 billion, with broadcasters feeling that he had reaped his riches on the backs of their content and vowing they wouldn't let that happen again. The LMiV was also conceived at the height of the "portal" frenzy, when NBC and Disney and Lycos and dozens of other companies were racing to build elaborate content-filled sites that would be users' entry points to the Web. However, I believe we can see clearly now that the Broadcast.com sale was a fluke at the height of the dotcom frenzy that we'll never see the likes of again. (Mark, wouldn't you agree? I think you've said so yourself!) Furthermore, the "portal" concept seemingly failed several quarters ago for most of the media properties that were trying that approach. It's certainly out of favor at the moment. Most radio stations today, I believe, want a website that will (1) support the branding of their radio station, (2) offer an opportunity for listeners to access the streamed audio of the station, (3) support some kind of loyalty program or e-mail marketing effort, (4) offer some NTR opportunities for salespeople, and (5) possibly offer some side-channels. The LMiV is certainly offering its stations a different approach. As I told the Indianapolis Business Journal reporter, time will tell whether the "elaborate information portal" build-out is a brilliant alternative for radio stations or not. -- KH ...

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Arbitron has been named one of "The 100 Best Companies to Work For" in a study commissioned by Fortune magazine, and conducted by the Great Place to Work Institute. The results of the study, to be published in the February 4 issue of Fortune, are available online here.

Companies apply for consideration for the list, and are ranked according to a score. Two-thirds of the score is based upon how randomly selected employees respond to a survey which measures the quality of workplace culture, and one-third is based on the magazine's evaluation of company responses to the Institute's "Culture Audit." Considered firms must employ at least 500 staff and be in business for at least seven years.

Arbitron ranked 52, and also ranked in the Top 26 Best Companies for Women (Arbitron's workforce is 58% female). The mini-profile of the company shows that 36 percent of the company staff is non-Caucasian minorities, the starting salary for the most common entry-level profession is $65,000, and the company offers 40 hours of professional training per year. According to a summary, "Employees...can mail holiday packages at the annual Winterfest party. Arbitron pays for shipping and employees donate the shipping equivalent to a local women's shelter."

The Top 100 is some exclusive company indeed. Even in a weak economic year, and with the fallout of September 11th, "80 companies on the list avoided layoffs last year; 47 even report that they have some kind of official policy barring layoffs." Also special in this year's survey was the response of some of these companies to the terrorist tragedy. "The response [among the Top 100] was extraordinary. Corporate donations flowed to relief groups; for workers in the military, most companies guaranteed the difference between military pay and the employee's regular salary; and employees donated pay to relief efforts."

In a released statement, Arbitron president and chief executive officer Steve Morris said, "We are honored to be recognized among these outstanding companies that exemplify the highest qualities of American business practices, especially since this is our first year as a independent company and the first year we've been eligible."

See the complete results in the upcoming issue of Fortune, or click here.

From CNET News.com: "Listen.com...sees Internet service providers, particularly broadband services, as its best distribution partners and doesn't plan to market directly to consumers. It's already signed on Speakeasy.net and is pitching Rhapsody as one of the best ways for ISPs to justify higher subscription fees for faster service to customers.

"It's an idea that has been floating in the broadband world for some time. SBC Communications has even spent considerable time and money changing the way its DSL (digital subscriber line) network supports subscription services of exactly this kind.

"'ISPs are looking for cheap and easy programming that's going to help them upgrade their customers to broadband,' says Jupiter analyst Aram Sinnreich. Listen.com's 'timing is good...'

"Analysts say digital music subscription revenue will be barely a blip on the industry's radar screen for years to come, reaching roughly $1 billion by 2006, according to Jupiter Media Metrix forecasts. Next year will be the first time such subscription services will have any appreciable revenue, reaching about $200 million, the research firm predicts.

[Listen.com CEO Sean] "Ryan says he's not betting on substantial revenue from Rhapsody at least until next year. His company can last on its accumulated cash for another few years, he says, giving it time to improve the service and find distribution partners...

"It's also an open question whether Listen.com stays independent...

"Ryan says there are advantages to staying solo. MusicNet and Pressplay, for example, each have had a difficult time licensing music from labels that back just one of those services. Some potential distribution partners might prefer an independent music wholesaler to stepping into turf battles fought between the labels, he adds. Thus, while he does take calls from potential suitors, Ryan says his company is likely to stay unaffiliated..."

Read the entire article here.