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RAIN exclusive!
Legal uncertainty the last straw, Entercom pulls last 20 streams
BY PAUL MALONEY

With the lack of an officially determined
royalty rate and cumbersome proposed recordkeeping requirements making Internet streaming that much less attractive, the streams all 101 of Entercom Communications stations will soon be silent.

A statement released today said, "We regret that at this time we are no longer streaming our radio station(s) on line. Due to many factors we've had to make the difficult decision that this is no longer a service we can provide." The official "effective" date of the decision is tomorrow, though at this time many stations have gone ahead and pulled the plug.

Director of Internet Operations Amy Van Hook told RAIN today that it all came down to a matter of practicality. "Given the combination of costs, legal issues, and technology involved," she said, "streaming just isn't a smart business decision" right now.

RAIN verified that many Entercom station streams were already down, including those of WKSE-FM/Buffalo, KISW-FM/Seattle, and WLMG-FM/New Orleans. However, KDND-FM/Sacramento and WEEI-AM/Boston were still streaming as of midmorning today via StreamAudio. (Interestingly, we couldn't find a "Listen" link on KDND's page, nor a mention of the streaming shutdown.)

Van Hook said only 20 of the company's properties were still available on the Internet before this latest measure. According to her, Entercom began considering silencing the streams over a year ago, when as many as 54 of the outlets were online.

A number of developments
began eroding the roster of streaming Entercom stations since that time. The AFTRA situation of last spring (when union commercial talent demanded 300% scale for radio commercials that ended up online), and streaming provider StreamAudio's switch to a fee-based model were two. And, according to Van Hook, the streams simply didn't have the audience to make it worthwhile.

"The return's simply not there," she said today. "We can reach multitudes more people with our weekly newsletter" and loyalty marketing program.

This is from
the KISW website:



An earlier report cited one Entercom station
's message on the development. Included was a bit of "editorializing" that laid the blame at the feet of politicians and record labels. That, according to Van Hook, was added to the official company statement at the station level. She did, however, name the Digital Millennium Copyright Act (DMCA) and the Recording Industry Association of America (RIAA) as being part of the problem.

"The DMCA needs to be amended," Van Hook said. "That's the real problem, and that's where the RIAA gets its power over us from," she added, referring to record labels' demands for high royalties and extensive reporting information about the songs that are played. She cited the "performance complement" element of the law, which restricts the number of times a single artist can be played within a given time period, and prohibits the announcement of upcoming songs.

"So we're supposed to change how we do things on the air (to make the streams legal)?" she added. "That goes against how programming works."

Van Hook did leave open the possibility the company would return to streaming "when it makes economic sense."

Entercom is the fourth largest broadcast group in terms of revenues, founded in 1968, and with 101 stations in 19 markets.

This is from the WKSE website:

 


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Satellite radio, wireless firms try to sort out interference issue
From Reuters in USA Today: "XM Satellite Radio Holdings and Sirius Satellite Radio are in talks with wireless companies to resolve a dispute over interference with wireless communications services, officials said Thursday.

"The two sides have been bickering over the satellite services using equipment to extend their digital radio signals to hard-to-reach areas like metropolitan areas where skyscrapers can block satellite beams.

"Such equipment, called ground-based repeaters, could interfere with some wireless communications services...

"One industry source said that a framework was being developed by the parties — which include AT&T Wireless, BellSouth and Verizon Wireless and others — but there is still work to be done.

"The power levels of the repeaters could make or break the agreement, the source said. The wireless carriers argue that a power level of the repeaters above 2 kilowatts can overwhelm their services. Some companies have plans to use their airwaves for two-way fixed wireless high-speed Internet services.

"On the other hand, the satellite radio firms have said a power level below 40 kilowatts can affect their signals."

Read this entire article in today's USA Today, or online here.

 

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Reader feedback
Regarding yesterday's lead story ("Major labels still not ready to use the 'Net to market product")in RAIN here...

"Indies are waiting in the wings..."


Oh come on. Does anyone doubt that the music industry knows how to use the Internet for promotion and marketing of product? If they don't, I can give them a hundred ways.

The truth is what the music industry wants to figure out is how to control it. But there is no reason for the music industry to be paranoid. The music industry should embrace new technology, not try to suppress it.

Take peer-to-peer technology, for example. It can be used to take advantage of the greatest selling tool the music industry has...word of mouth. It's a new age. The digital genie is out of the bottle. The Big Five labels need to adapt to this new environment or they will sink under their own weight. Indies are waiting in the wings. They are not paranoid and are already taking advantage of what the Internet can do.

  Richard Fusco


"The way of the dinosaurs..."


Radio broadcasters behaved this same way when television was introduced. Justice and progress will prevail, if the music industry tries to fight this evolution rather than embracing it, it will go the way of the dinosaurs. Maybe that is the best result. The Internet is a means of cutting out that big fat middle man which lies between artist and consumer.

If the U.S. decides to shoot its own foot by thwarting new industry, the rest of cyberspace will readily swoop in and satisfy these needs.

In Canada we did something similar in the Sixties. Our prime minister canceled the Avro Arrow program and it basically killed Canada's extremely promising aviation industry. That jet could leave earth's atmosphere! Technology is really only catching up with it now. The old tried to stop times from changing, and the whole country paid the price.

  Namaste,
Greg


"This was a sad day for me..."


I just found out one of my favorite radio stations stopped steaming yesterday, WRSI.

This was a sad day for me. Great station playing music other stations would not. They said the reason was RIAA. I hope they can work in out in the future to start streaming again.

  Howell


We'll send you a brief daily summary of each day's stories with a clickable link to the RAIN home page.
Satire from "The Onion"
Look out Corporate America, here comes my pirate radio station
From The Onion: "If, like me, you're among the thinking few, you're pretty disgusted with what passes for radio these days. Turn anywhere on your FM dial, and you're likely to hear the sound of some enormous multinational media conglomerate anesthetizing the masses with its spoon-fed pabulum. From Hot 96 to Z-104, these stations are all the same: prepackaged, focus-grouped DJs selling a bill of false goods to lobotomized teens who don't know the difference between revolution and repetition. Even noncommercial, so-called "public" radio is just a cog in the Great American Money Machine.

"Well, I, for one, have had enough. It's time to shake up the status quo and put a little fear in the heart of the Establishment. Yes, consider this an official declaration of war: Look out, Corporate America, here comes my pirate radio station!

"Last Friday, Radio Free Tate, the city's first and only broadcast forum for the disenfranchised voices of the country, went on the air. Located somewhere between 89.5 and 91.3 FM, Radio Free Tate is going to let corporate America have it with both barrels: the truths they're afraid to say and the songs they're afraid to play...

"A bunch of my friends have already said that when they're in my neighborhood, they keep their radios tuned to Radio Free Tate. You're probably thinking they're just saying that because they're my friends, but they're not. Where else are they going to hear Black Flag's 'TV Party' followed by a scathing anti-PepsiCo editorial followed by Gang Of Four's 'Guns Before Butter?' On K-Rock? I think not...

"I'd encourage all of you to tune in to Radio Free Tate. Like I said, it's somewhere between 89.5 and 91.3 on your radio dial—depending on which side of Maplewood Street you're on. Before long, you'll be able to find our listening area simply by paying attention to who suddenly goes through a political revival. They'll start using less, caring more, and voting with their hearts and minds rather than their wallets. And they'll be listening to the best mix of music you won't hear anywhere else. Find that neighborhood, and you've found Radio Free Tate."

Read this editorial in the latest issue of The Onion, or online here.
 


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