RAIN 11/2: CEO's view of Net radio as "race to the bottom" won't slow SiriusXM's plans for custom streaming

Paul Maloney
November 2, 2012 - 11:10am

SiriusXM CEO Mel Karmazin called ad-supported customizable Internet radio "a race to the bottom in terms of business model," as the quality of the user experience depends on a low spot load.

Karmazin, who announced last week he'll step down as SiriusXM CEO in February, spoke on his companies Q3 earnings call yesterday (his comments were reported by Billboard.biz).

"Those companies (ad-supported, personalized webcasters, such as Pandora) which can grow users and provide good customer experience usually have the worst business models," he said. He said fixing their businesses would take "a whole lot more commercials, and that means harming the customer's experience."

It will be interesting to see if SiriusXM puts Karmazin's idea into practice when the company launches its own online custom radio, which he promised it will by the end of the year.

"Not because we think it's a good business," he qualified, but because customers want it.

Read more in Billboard.biz here.

Paul Maloney
November 2, 2012 - 11:10am

A staff attorney at Public Knowledge named Jodie Griffin has posted a detailed examination of all the provisions of the Internet Radio Fairness Act, including the necessary background concerning the Copyright Act, the CRB, and the matter of the two key legal standards the CRB uses in determining digital performance royalty rates.

The Internet Radio Fairness Act is a bill in both houses of Congress to create a more level playing field for Internet radio concerning sound recording royalties. It was introduced to the House by Reps. Jason Chaffetz (R-UT) and Jared Polis (D-CO) and in the Senate by Sen. Ron Wyden (D-OR) (more here).

Public Knowledge is a non-profit public interest group focusing on "intellectual property law, competition, and choice in the digital marketplace, and an open standards/end-to-end internet."

While most coverge of the IRFA (including this publication's) has focused on the bill's key provision -- that is, changing the rate-determination standard from "willing buyer/willing seller" to 801(b) -- the IRFA would make other changes to the royalty process for Internet radio (which industry expert David Oxenford has covered, more here). Griffin's article points out these additional provisions of the bill.

"The change from the willing buyer/willing seller standard to the 801(b) standard is widely anticipated to significantly lower the royalty rates that online radio services pay," she writes. "There is also a substantial need here for more economic data and analysis to predict what practical impact this bill would have on consumers, artists, and online music services... The explanation of how this would actually impact the online music marketplace and artist revenues is tricky and deserves a post of its own, so I will leave that discussion for next week."

Griffin's article is on the Public Knowledge site here. A somewhat more detailed run-down, as well as a "redlined" excerpt of the copyright law, showing the bill's additions and deletions to the code, can be found here

Paul Maloney
November 2, 2012 - 11:10am

James Cridland and Matt Deegan, who've organized the Next Radio conference in London the past two Septembers, have made available video of the presentations from both installments of their event for free online. 

Cridland tells us it's "all bitesized chunks of excellent radio ideas from the UK, including some award-winning podcasters. And all for free. Great radio is great radio, wherever it is..."

We're looking forward to digging in to it this weekend. Take a look yourself here.

Paul Maloney
November 2, 2012 - 11:10am

Stitcher, most known for its podcast- and spoken word radio mobile apps, has launched a fully-featured HTML5 web app that syncs with the mobile apps, as well as a player widget for browsers. Access the new web app here.

A Forbes contributer suggests three reasons she thinks Pandora could "stare down Apple if it indeed is launching a streaming radio service" here.

Speaking of Apple's rumored "iRadio," "if the future is also about location-based advertising... iRadio could bolster Apple's offer to brands by adding value to Passbook and Maps, two products that already combine brands/advertising and local," says BTIG analyst Richard Greenfield (as reported by Billboard.biz here).

With Internet radio becoming more and more of a mobile experience, we thought you'd be interested to see The Media Audit's "Five Characteristics of Mobile Internet Users" here.

Several models of new Pioneer in-dash receivers include "MixTrax," the company's "automated DJ and playlist software (which) analyzes your music library and creates custom mixes that play back while you drive," reports CNet. Read more here.  

Senzari, the Miami-based international webcaster (we've covered them here) has acquired the company behind WahWah.fm, which "turns music on iPhones into net radio stations available globally and to others nearby." There's more in Hypebot here.

Finally, you and your "buds" can have an iTunes, Spotify, and Rdio listening party with BudtoBud, an app that turns an account on these services into a mulit-user "listening room." Eliot Van Buskirk at evolver.fm has more here.