BY PAUL MALONEY
AOL multi-channel webcast property Spinner has announced on their homepage that beginning the week of August 12, the service will be relaunched as Radio@Netscape Plus.

According to Spinner's site, the new Radio@Netscape Plus will add local radio stations, sports, and news coverage to the existing range of channels, as well as "enhanced station navigation." The company says that none of the functionality of the current player will be deleted.

AOL Music spokesperson Ann Burkart told RAIN the beta version of the new player will be released soon, with the final first version by mid-August. She said that even in its official version, the channels will be "powered by Spinner," maintaining some continuity with the established Spinner brand name.

Burkhart told RAIN that there would be "absolutely no changes" as far as staff or management of the music property goes. She said that since Kevin Conroy came onboard to head AOL company music services in February of 2001, they've followed a strategy to "leverage their leading web property" and integrate those offerings across the company. She said that these changes are simply part of that strategy.

In May, Netscape debuted an online radio service as a built-in feature of their new Version 7.0 browser, with links on the Netscape homepage. (See RAIN's coverage here).

The San Francisco-based Spinner claims to stream more than 22 million songs a week over its 150 or so professionally-programmed channels. The site also offers music downloads. Netscape parent AOL acquired Spinner in May of 1999 and merged with Nullsoft, creators of the popular Winamp MP3 software.

...

... Two thoughts: (1) Note how Netscape has prominently displayed the link to the radio service (see screenshots). It's right up there with e-mail and Instant Messages. This shows they think Internet radio is important enough to brand it along with their other key products. (2) The elimination of the Spinner brand name means that there is now NO major national brand name in the space! Think about it: NetRadio, Sonicnet, DiscJockey.com, Launch, and now Spinner...all are gone or subsumed under corporate brand names. Even Radio Free Virgin trades on a parent brand name. Here's an analogy: If lemon-lime soda were to become increasingly popular, but all the product choices had already-popular soft drink brands like "Pepsi Lemon-Lime" and "Coke Clear" and "Mountain Dew Code White" and 'Miller 7up." It would seem like there's a branding opportunity wide open for someone who wants to establish a brand name that could own the category -- a service that specializes in Internet radio (as opposed to offering it as one of several "services.") It's not the ONLY route to success (obviously "Diet Coke" worked) but it is certainly ONE GOOD route to success for someone who wants to take it, but it's expensive. That's why brand extensions are so popular -- they're cheaper and faster. -- KH ...

BY PAUL MALONEY
Several industry figures have expressed their reaction to Rep. Jay Inslee's (D-WA, pictured below) introduction of the Internet Radio Fairness Act, a bill aimed at avoiding the almost certain decimation of the independent Internet radio industry.

The proposed law, bill number HR 5285, would exempt "small business" webcasters (with annual revenues below $6 million) from sound recording royalties, eliminate the "ephemeral copy" charge, and fundamentally change the arbitration process for determining these rates in the future (see RAIN coverage here).

Digital Media Association executive director Jonathan Potter (left) responded on Friday to the introduction of the bill. "DiMA applauds Representatives Jay Inslee, George Nethercutt and Rick Boucher for today's introduction of the Internet Radio Fairness Act...with this bill, (these legislators) have once again demonstrated their appreciation of the promise of Internet technology and the benefits to consumers and recording artists that will result from a vibrant Internet radio industry. We are particularly encouraged by the bill's bipartisan support."

House members who have formally expressed support for the bill also include Rep's Corrine Brown (D-FL), Ander Crenshaw (R-FL), Norman Dicks (D-WA), Gerald Kleczka (D-WI), Dennis Kucinich (D-OH), Rick Larsen (D-WA), James Leach (R-IA), Zoe Lofgren (D-CA), Patsy Mink (D-HI), James Moran (D-VA), and Adam Smith (D-WA). Also onboard is Illinois Republican Rep. Don Manzullo, the Chairman of the House Committee on Small Business, who Potter says is "highly regarded for his strong support of America's entrepreneurs."

Beethoven.com's Kevin Shively told the San Jose Mercury News (here) introduction of the bill is "basically a stay of execution for Internet radio. It basically means we get another chance to go through this thing with more fair rules.''

In the same article, KPIG webmaster and RadioParadise founder Bill Goldsmith (right) said, "We're very jazzed about this.' If it were to go through, that would give us a lot of breathing room on this issue. We wouldn't have the present fees hanging over our heads and we'd be able to participate in the process of setting new fees.''

SoundExchange is the royalty collection agency of the recording industry. Its executive director, Jon Simson, strongly disagrees with the intentions of this bill. He told the Mercury News, "When will recording artists and those who invest their time, energy and considerable resources to create one of our country's greatest legacies -- sound recordings -- be allowed to receive fair compensation for their creations?''

Simson says the economic difficulties which Internet radio faces are hardly the fault of copyright owners. He told CNet News (here), he said, "Congress should not legislate that creators forego their income so that Webcasters can maintain business models that have not proven themselves able to succeed in the free market. These Webcasters are businesses. Why shouldn't they pay fair market value for the music which is the very core of that business?"

Similarly, he told the L.A. Times (here), "We might have been a convenient scapegoat, but if you look at all their numbers, they were losing tens of thousands of dollars."

"The damage is already done..."

"I think we scored a big one..."

I wrote to my Representative in Congress about the outrageous fees Internet webcasters are now faced with. I'm retyping what she wrote in response (she responded via regular mail).

It should also be pointed out that she is on the Telecommunications and the Internet subcommittee as well, so I think we scored a BIG one with this letter. Here is what she said:

From Representative Diana DeGette: "Thank you for contacting me about the issue of royalties charged to Internet Broadcasters. I am pleased to learn your views on this and appreciate the opportunity to share mine.

"I disagreed with the recommendation made by the Copyright Arbitration Royalty Panel (CARP) earlier this year to charge online broadcasters a much higher percentage of royalty payments than is charged to traditional broadcasting venues like radio stations. Because I thought this was unfair, particularly to smaller webcasters, I sent a letter to the Librarian of Congress asking him to reject the CARP decision and come up with a more fair resolution.

"While the original CARP determination was rejected, the final decision the Librarian of Congress recently made is one that I fear will harm Internet Radio because onerous fees will be charged, including retroactive royalties, that will put smaller webcasters out of business. I believe that a compromise should be found that is fair to all parties involved, and will consider supporting legislation that will accomplish this.

"Thank you for contacting me. I look forward to our continued communication on this and any other issue of importance to you."

While this is indeed inspiring news, it should be reiterated that our battle HAS ONLY STARTED!!! Out of the hundred or so in all of Congress, we only have a small handful (a VERY small handful). WE NEED MORE LETTERS LIKE THIS IF WE ARE TO ACCOMPLISH OUR GOALS!!!!! KEEP WRITING!!!!

For those who don't know how, you can go to one of the following URLs:
Congress.org (Just enter your zip code)
US House of Representatives (Just enter your zip code)
Voice of Webcasters (This will send a pre-written fax to your representatives. Just simply follow the onscreen instructions).

... Here is a growing list of webcasters who, because they don't feel they can manage webcasting royalties in a viable business, have decided that it's in their best interests to silence their streams. (We thank them for their hard work and dedication to their audiences and the industry, and wish them luck in their future endeavors...)
All80s.com	AudioCandy.com	BlueMars.org
BrazilCast 1 & 2	Celtic Heritage Webradio	Chez Whitey
Entercom stations	Good Time Oldies Radio	Greater Media stations
GrrlRadio	HitRadio.biz	Hot Hit Radio
IdahosCast.com	KDFC/San Francisco	KEOM/Mesquite
KKDV/San Francisco	KKPT/Little Rock	KMGO/Centerville
KOIT/San Francisco	KPIG/Freedom, CA	KTRS/St. Louis
KWXY/Cathedral City	Lotus Radio stations	McClure stations
Minion Radio	MonkeyRadio.org	MYNDFK.com
NetRockRadio.com	NextMedia stations	OnTheCorner.fm
Perkigoth.com	Powerrocks.com
Progrock.com	Psychedelic Time Warp
RadioBoston.com	RadioCentral.com	Radio Free Akron
Radio Free BD	Radio Free Tiny Pineapple	RadioMaxMusic
RKNA: Aural Arcana	SavageRockRadio.com	Simmons Media stations
SomaFM.com	StarDogRadio.com	TagsTrance.com
The City Radio	therockfm.com	The Zoo
WAAF/Worcester	Waitt Radio Network	WCKW/La Place
WellsRadio.net	WEST/Easton	WLUP/Chicago
WMMR/Philadelphia	WOVRadio.com	WRVG/Georgetown
WSBF/Clemson	WYYB/Phoenix	Yahoo! Radio stations
Have we missed others? Use the feedback form above or e-mail us here.