[BC] Question/Statement About The Cost of Streaming

[Harold Hallikainen]

>> On one stations "Friends Of" website at
>> http://www.friendsofmvyradio.org/
> they
>> say their streaming cost $500,00 a year.
>>
>> That's nearly $42,000 a month.. more in a month thensome make in a year.
>>
>> What in the world causes it to cost so darn much?
>
> That is the cost of running the whole operation, including the 92.7 FM on
> Martha's Vineyard.  While I can't attest to the numbers, some of that
> amount
> ends up in my pocket as they are a client.  I was there yesterday.
>
> FWIW, they are a "Real Radio" operation.  Later this month they will be
> doing a bunch of live stuff from Merlefest.  Last month they did South By
> SouthWest including the live R.E.M. concert.  They send enough people out
> to
> these shows to do a great job.  Not something you'd see from the usual
> Korporate Klone stations.  They do have The Clue.  I truly enjoy working
> with them.
>
> Craig Healy
> Providence, RI


So, does the "streaming cost $500k per year"? Or is that the entire cost
of the operation, including program creation? I think it would be
interesting to do a "per listener" or "per viewer" cost comparison between
internet streaming and broadcast (over the air and cable). It seems that
streaming is economical when you are covering a low density audience (few
people over a large area), but above a certain density, broadcast
technologies seem to have an economic advantage. Users may be willing to
pay the extra cost to get on-demand programming. However, by moving some
of the hardware to the user (digital video recorders, etc.), on demand
becomes largely possible over a broadcast medium.

So... how many people are listening to the radio right now in your market?
What is the transmission cost to reach them (equipment, energy, real
estate, maintenance, spectrum use)? What would it cost to reach the same
number of people using streaming?

Harold

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