"Katz Media Group, Inc. today announced that its Katz Radio Group acquired Net Radio Sales, Inc from Aritaur Communications Inc.

"The acquisition represents Katz Radio Group’s most significant investment in digital media and will offer advertisers expanded opportunities to reach their audience across multiple audio and web-based platforms. Net Radio Sales, to be renamed Katz Net Radio Sales, sells streaming audio as well as all forms of interactive advertising across its digital network of hundreds of Internet station affiliates and provides exact audience and impression measurement for every advertising campaign.

"The company represents a network of more than 1,000 Internet radio streams—both broadcast and Internet-only stations—reaching over 5 million listeners each month. Terms of the sale were not disclosed.

“The addition of Net Radio Sales offers us the opportunity to enter the exploding digital media world and is a natural extension of our business,” said Mark Gray, President of the Katz Radio Group...

"Katz Net Radio Sales will be led by Jennifer Lane (pictured right), the current president of Net Radio Sales. Ms. Lane, an early advocate for the online radio industry, started Net Radio Sales in 2003. Ms. Lane is widely considered one of the most prominent experts in Internet radio, dedicated to the use of precise data for audience and campaign measurement to benefit the industry and the advertiser.

"As part of this transaction, Katz entered an exclusive agreement to use the Internet radio audience measurement tools created by one of Aritaur’s partners, Ando Media."

...

x It's been a discouraging past few months, to be sure. So to see movement like this in the industry is pretty invigorating. Katz is one of radio sales' biggest firms, and the acquisition of Net Radio Sales is a credible vote of confidence in the importance and future of the Internet radio industry. And with any luck, this is just the beginning. -- PM x

From the Chicago Tribune opinion section: "Every band dreams of the lucky night it'll be discovered by a music promoter or favorite record label. Overnight you've got a hot record, radio stations everywhere playing your songs and your band becomes a household name. It's the classic musician's fairy tale.

"But it is a fairy tale and, for every new artist who is discovered by a major record label, there are thousands who aren't. For the rest of us, pursuing a career in music is hard. Now, proposed new royalty rates for Internet radio threaten to make it harder.

"You see, our Americana band Tangleweed (pictured below) was 'discovered' — just not in a nightclub by an industry executive. We were discovered on Pandora.com by bookers for a huge music festival...

"With more than 7 million Internet radio listeners every day, Internet radio offers exposure for groups like ours that just isn't possible on mainstream radio stations.

"But now we're at risk of losing it...

"While music artists certainly benefit from royalties, this kind of royalty rate hike will mean bankruptcy for almost every Webcaster. Music is a labor of love for many Webcasters, as it is for so many musicians. A significant number of small Internet radio stations already operate at a loss; they carry on because of their commitment to the music they play. A dramatic rate hike is more than most can bear.

"Right now, independent artists make up less than 10% of what's played on broadcast radio, but on Internet radio, we make up about 37%.

"The reality is if our representatives in Congress allow these new royalty rates to go into effect — and it's within Congress' power to decide — it'll make it far harder for independent artists like us to make it...

"While we've become believers in Internet radio for selfish reasons — as both artists and listeners — the principle of creating a marketplace encouraging artistic entrepreneurs stands on its own...

"Killing Internet radio will not only stifle the great technology we have now, it will also stifle the innovation of even better, newer and more exciting ways to enjoy music — and that's nothing but bad news for all of us."

Read the entire op-ed at the Chicago Tribune.

From the Seattle Times editorial section: "Sunday could be a dark day for Internet radio. A new royalty structure begins that will wipe out the small budgets of many Internet radio stations.

"This assault on one of the last escapes from bland commercial radio could be avoided if Congress acts on a bill introduced by Rep. Jay Inslee (pictured right),... It should be an easy vote for Congress, if it is concerned about democracy. The new rate structure will silence voices on the Internet that have been squeezed off the consolidated radio dial. What makes the rate structure imposed by the CRB so unseemly is that it was suggested by SoundExchange, the entity that collects and distributes royalty fees.

"The new system increases Internet radio royalties by treating the stations like download services. Stations will now have to pay more for every song played, then multiply that fee by the number of people listening. The current structure has performers being paid every time a song is played...

"The new fees are not about paying artists, who should be properly compensated. This is about SoundExchange and the corporate giants that dominate the music industry, controlling what is heard and the channels through which music is delivered.

"Small Internet radio stations will not be the only casualties. Public broadcasting stands to lose a vehicle that broadens its reach. Many public broadcasters use the Internet to complement their radio news programs...

"If Congress is serious about a healthy democracy, it will strike down the CRB's rates, and allow for a diversity of voices to be heard through the Internet. The time to act is now."

Read the entire editorial at the Seattle Times.

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Thanks to all the RAIN readers for the kind feedback on our essay from yesterday, "True goal of SoundEx offer: Screw artists and indies?", which you can read here...

"A brilliant, but morally corrupt plan..."

"I would love to see SoundExchange's response to your post..."

"Killer editorial... I'm pumped..."

"You should make sure Rich Bengloff of A2IM sees your editorial..."

"Trying to position themselves to keep hold of their lucrative system..."

"The Big 4 want total control over the popular media..."

Of *course* they're going to fight such a nightmare scenario with every Machiavellian legal maneuver at their disposal. I knew they were good at that sort of thing, but thanks to your insightful analysis I have a new-found appreciation for just how good they are.

"You are the expert that understands the entire situation..."

"Extreme discounts in exchange for airplay... isn't that payola?"