[BC] Re: [BC The END of Internet Radio?

[Rich Wood]

At 02:58 PM 3/7/2007, you wrote:

>And quite honestly Kevin, I don't think even the big guys are going 
>to think it's worth the bucks to stream. In fact, I'll bet you 
>broadcast companies are happy with this decision as it will bring 
>people back to terrestrial radio. I have a feeling some radio types 
>might have been in the background on this one. (Kill it before it 
>spreads) Watch streaming companies die and at the same time (and 
>this is where greed gets you) the record companies and artists as 
>they will not get the money they thought they might. It's a Lose 
>Lose situation.
>
>If they only believed that "half a loaf is better than none". This 
>had to do with killing Internet streaming/broadcasting and that 
>(unless their hand is forced otherwise) it will do.

I'm at the Radio and Records Talk Radio Seminar in Los Angeles. If 
the big guys are trying to kill streaming is sure isn't evident in 
the seminars here. Virtually everyone has insisted the Internet must 
be a part of a station's total service. The Internet streaming and 
web sites bring interactivity to radio, even more than direct on-air 
calls. Strangely, the only distribution system not mentioned as 
important is IBUZ. Even more surprising, there are no seminars even 
remotely related to IBUZ on the schedule.

Admittedly, the only issue a talk station has to deal with is the 
AFTRA talent fee for commercials. In major markets, the station's 
talent is paid well above AFTRA scale and aren't prevented from doing 
streaming spots and there are spots from agencies listed as being 
permitted for streaming.

Music is another story.

Rich


>Steve
>
>Steve Newman
>Steve Walker Productions
>Opp, Alabama
>
>
>----- Original Message ----- From: "Kevin Trueblood" 
><kevint at aaabloomington.com>
>To: <broadcast at radiolists.net>
>Sent: Wednesday, March 07, 2007 1:13 PM
>Subject: [BC] Re: [BC The END of Internet Radio?
>
>
>>I'm still confused here, and perhaps somebody could point me in the 
>>right direction.
>>
>>Over the air stations that stream, already have to pay royalties to 
>>the RIAA via Soundexchange.  These are the fees dramatically 
>>increasing. Smaller market stations that stream, like us, are now 
>>going to be facing fees that are somewhere along the line of a 
>>tenfold increase?  If so, that instantly takes us out of the 
>>streaming market since we can get clients to cover the cost of the 
>>fees now, but any higher than that it's out of our range.
>>
>>What I see for Internet broadcasters, is more conglomeration.  Same 
>>for every other business in existence it seems.  The little guys 
>>are completely priced out of the market.  It used to be easy for Ma 
>>Kettle to buy a radio station.  Today you have to cough up millions 
>>for even the smaller market stations.  Satellite radio was supposed 
>>to be the "savior of choice" and bring a bigger variety.  While 
>>offering more music choices, it's proposed to become one big 
>>company.  No competition in existence.
>>
>>Internet radio was the final frontier.  A chance for the little guy 
>>to still have his voice.  These rates take them out of the running 
>>and make it so the largest companies are the only ones who can 
>>afford to continue operating. Survival of the fittest, indeed.
>>
>>-Kevin
>
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