RAIN 6/11: Verizon wants to connect cars directly to web, but Detroit may prefer relying on smartphones

Michael Schmitt
June 11, 2012 - 11:40am

In-car stereoThe current in-car Internet radio landscape is dominated by dashboard systems that let users control services like Pandora, iHeartRadio and TuneIn...provided there's a smartphone connected.

Lately, Verizon has reportedly pushed aggressively for a different future, one where cars connect directly to the web via 4G LTE. GigaOM reports Verizon Wireless' parent company recently purchased a machine-to-machine telematics company, while Verizon itself has formed a 4G Venture Forum for Connected Cars.

BMW, Honda, Hyundai, Toyota and Kia have joined the forum, but absent are automakers from Detroit. GigaOM writes their absence "might be attributable to the fact that U.S. automakers’ visions for the connected car aren’t entirely aligned with Verizon’s."

That is, they would prefer the current bring-your-own-connection set-up.

"The logic is sound," comments GigaOM (here). "Consumer vehicles have long replacement cycles. Meanwhile consumers trade in their smartphones for more-sophisticated models every 18 months. Any radio, processor or platform technology an automaker embeds in a car could become obsolete within a few years."

But might requiring a separate device end up being a roadblock to in-car web radio adoption? Perhaps not. Nielsen recently found that more than half of mobile users in the U.S. now own a smartphone (RAIN coverage here). Meanwhile, Forrester Research has predicted U.S. consumers will own 257 million smartphones by 2016 (more here). 

As Auto Magazine commented last year (here), "Millions of drivers already pay for powerful mobile devices and data plans, and most new cars, even those as inexpensive as the Kia Forte, are set up to connect with them via Bluetooth and USB inputs."

But it will be up to automakers to make the integration between their dashboards and the increasingly diverse world of smartphones as seamless and painless as possible.

Paul Maloney
June 11, 2012 - 11:40am

Amazing Media runs Amazingtunes.com, where independent musicians can upload and sell their music and keep 70% of the retail price. To promote the music, Amazing founder Paul Campbell (left) started Amazing Radio, a digital (DAB) and online radio station, in 2009. From that project came Amazing Instore, Campbell's service that customizes background music for more than a thousand shops and restaurants in the U.K.

Here's something else unique about Amazing in this space: it's profitable. Campbell's company is on track to clear $3 million in profits this year.

Now, not only is Campbell reportedly meeting with retail and restaurant chains here in the U.S., CNet reveals he's working towards acquiring a terrestrial radio outlet in this country in the coming months. ("He won't share details about his plans for a U.S. radio station, other than saying it will launch either in Boston, New York, San Francisco, or Los Angeles.")

Campbell spoke at RAIN Summit West in Las Vegas in April. The panel on which Campbell spoke was moderated by industry veteran Ted Cohen (right), who Campbell has brought on to forge deals for Amazing with U.S. companies like AOL, Yahoo, and others. Campbell and company are looking for $30 million to fund the expansion, and are reportedly talking with VC firms like Kleiner Perkins Caufield & Byers and Mayfield Partners.

Read more in CNet here and Hypebot here.

Michael Schmitt
June 11, 2012 - 11:40am

The New York TimesThe New York Times Sunday covered both Clear Channel's new royatly deal with Big Machine (RAIN coverage here) and last week's House subcommittee hearing on "The Future of Audio" (RAIN coverage here).

NYT comments that Clear Channel's partnership "has nothing to do with politics," rather it's all about "digital music, and Clear Channel’s desire to reshape its business in anticipation of rapid changes in the marketplace."

It continues, "For Clear Channel, the Big Machine deal is likely to be a money loser in the short run, because it will be paying the label far more for terrestrial radio play than it will save online. But if the deal takes hold, it could save Clear Channel a great deal of money in the long run and change the economics — and politics — of radio."

You can find the New York Times' article here.

Michael Schmitt
June 11, 2012 - 11:40am

LifehackerLast week tech and lifestyle publication Lifehacker asked its readers, "What's the best Internet radio service?" (RAIN coverage here). Now Lifehacker has offered up 5 finalists to vote on: TuneIn, Soma.fm, Pandora, Slacker and Spotify. Last.fm, 8Trackers and Songza all earned honorable mentions.

Spotify -- technically an on-demand music service -- is in the running as it "also has some great hands-off radio features in the form of shared, collaborative playlists that you can subscribe to, and a great radio service that plays songs based on popular artists, or a musician you provide," writes Lifehacker.

You can vote for the best web radio service here.