New Slacker Radio Due Next Month

Hey, here's an idea: the FCC should license "broadcasters" across the country to transmit music via wireless "radio waves" to cheap "receivers." The service could be free to the listener subsidized via corporate advertising, and programming might include local news and information - multiple "stations" could even deliver tailored content to specific audiences. Automobiles might even be fitted with "radios" and inexpensive portable versions could be engineered to run for days on a single 9-volt battery...

From Charlotte Observer:

So a new kind of portable player, one for more passive and budget-minded users, is slated to arrive late next month. It's called the Slacker Personal Radio, and its name is meant to refer to people of any age who just want to sit back and listen instead of actively managing their music.

The new Slacker players will come in three models, ranging from $200 to $300, depending on capacity. But the music they play will be absolutely free, contained in preprogrammed Internet radio stations instead of individually selected songs and albums. The stations will be automatically refreshed with new tunes via a wireless connection built right into the device. You'll have to be near a hot spot for these updates. But you won't need a hot spot just to hear your music, because the songs are cached on the device. And you'll never have to plug it into a computer.

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Country Music Dominates U.S. Radio in 2007

From Reuters:

As of October, there were 2,054 country stations in the United States, which is up slightly from 2,049 a year earlier, according to M Street, which tracks such statistics. News/talk stations now total 2,026, an increase of 18 from a year ago. The number of news/talk stations has increased by nearly 500 in the past 10 years -- there were 1,567 in 1997. Country, by comparison, has lost more than 450 stations during the same time period.

Among current music-driven formats, country is tops, followed by contemporary Christian stations (920), Spanish (917), adult contemporary (666) and top 40 (495). Contemporary Christian stations are on the rise, up from 897 a year ago, as are Spanish-language stations, which tallied 819 at this time in 2006. AC is essentially flat, while top 40 is down 15 stations from a year ago.

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Broadcast Radio Streams Surging Past Internet Radio

From Radio Online:

JP Morgan's Internet Radio Scorecard for October shows traffic at web sites of traditional terrestrial operators has reached new highs with a record 28 million unique listeners. And it doesn't stop there. Growth this month pushed unique visitors to broadcast radio web sites out of their recent range of 60-62 million. At this pace, JP Morgan says they could continue to post sequential and year over year growth in 2008.

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Radio's Decreasing Role in Driving Sales

From Marsha Lederman, Globe and Mail:

Music-biz movers and shakers met in Vancouver this week to explore the star-making power of everything from online radio and prime-time TV to music videos, iTunes and Facebook.

Once upon a time, knowing what songs were dominating the music charts was easy: You turned on the radio.

Instantly, you'd be rewarded with a spin of a hit record - by the Beatles, the Bee Gees, U2 (depending on your era). Even if you touched that dial, chances were you'd encounter the same songs on a different station.

These days, it's not that simple. The choice of new music offerings can be overwhelming, coming at listeners via video games, iTunes, television shows, music videos, social-networking sites, online radio, satellite radio and, yes, old school, terrestrial radio - where the hit-driven Top 40 format is making somewhat of a comeback, according to some industry watchers.

With the unprecedented choice comes unprecedented fragmentation. The new multiplatform universe may mean the end of multiplatinum records. "Pretty clearly the days of selling 10 million albums are done," says Nic Harcourt, music director of the influential Los Angeles radio station KCRW and host of Sounds Eclectic. "There's probably less than 10 records that sold two million [copies] this year. I think it's a different world."

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Sales Malaise Spreads to the Hot 100

From Chris Molanphy, Idolator:

If you, current pop act, are not an Oprah-anointed permhead with a name rhyming with "Lohan," you are not having a fun week: A mid-holiday-season malaise has settled over the Billboard charts. That's clear from the current results on the Hot 100, where Alicia Keys holds on to the top spot for a third week even as her sales fall considerably.

Incumbency Has Its Privileges: Every song in the Top 10 of the Hot 100 sold fewer copies at iTunes and other buck-a-song sites last week than the week before. Digital sales for Keys' smash--just nominated today for a Best R&B Song Grammy but, weirdly, no pop Grammys--fall 35% (the biggest drop in the song's chart life), and "No One" relinquishes the title of top seller to Flo Rida's "Low" featuring T-Pain, whose sales only shrink by 5%.

With radio deeply entrenched in holiday playlist patterns--even stations that don't play Christmas music aren't adding many new records right now--expect the top of the chart to stay sleepy through the end of the year.

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Wachovia Analyst Calls Radio A 'No Growth Medium'

From Radio Online:

In a research paper entitled "Broadcast: Reevaluating The Landscape," Wachovia broadcast analyst Marci Ryvicker calls the radio industry a "no-growth medium," while revising long-term growth estimates for broadcast companies. The primary culprit: the reallocation of ad dollars to new media from traditional media.

"We previously believed that radio would some day show some top line growth, but after 24 consecutive months of revising our estimates downward, we now believe that 0% is a more realistic (and potentially the best case) scenario long term," wrote Ryvicker.

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CBS Radio CEO Calls For Radio Revitalization

From FMQB:

CBS Radio President/CEO Dan Mason spoke to the 35th annual UBS Global Media and Communications Conference on Tuesday, asking the radio industry to revitalize itself in 2008. "Radio is king – there is no media that can better deliver more targeted, personalized messages to audiences and advertisers," said Mason. "Today’s presentation was a call to arms to all our colleagues in the industry to better tell our story, and demonstrate the incredible opportunities for growth. Radio is going through one of the most transformative periods in the history of broadcasting, and it’s up to us to show the advertising and financial communities how we can seize these changes to our advantage."

Mason predicted that CBS Radio would turn a profit in 2008, calling himself "guardedly optimistic" about business growth next year. He said he was "confident" CBS Radio would be in the black in '08.

Mason added that radio needs to do a better job of selling itself and its ubiquity. "In New York, more people listen to radio than read all three newspapers combined, or visit Google, Yahoo or AOL on a monthly basis," said Mason. "We have information like this in every one of our markets, but there is the lingering perception that radio is still old media and not on a growth track."

Mason concluded that radio should also continue to embrace new media options, as well as invest in better programming content for its stations.

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Media Ownership Bill Passes Senate Commerce Committee

From Radio Online:

A bill aimed at slowing the FCC's media ownership review, introduced by Sens. Byron Dorgan (D-ND) and Trent Lott (R-MS) (pictured), has passed the Senate Commerce Committee. The bill would require the Commission to allow 90 days for public comment on any proposed changes to media ownership rules and would block the agency from voting later this month to revise the newspaper-broadcast cross-ownership ban.

If passed, the Dorgan-Lott bill would require the Commission to complete a separate proceeding on media consolidation's effect on localism along with publication of rule changes in the Federal Register some 90 days before a Commission vote, providing 60 days for public comment and 30 days for reply comments.

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Combined Q3 Radio Spending Drops 5%, NTR Up 7%

From Radio Online:

Spending across all radio sectors dropped 5% in the third quarter to $5.4 billion, while local radio declined 5% to $3.6 billion and national revenues were down 8% to $1.1 billion, reports RAB. However, network radio grew 9% revenue gain to $293 million, closely followed by non-spot with a 7% rise to $395 million.

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Forecast: Internet Ads to Surpass Radio

From Yahoo Finance:

Advertising Forecaster Says Internet Ads Will Overtake Global Radio Spending Next Year

NEW YORK (AP) -- The Internet will overtake radio next year in its share of global advertising spending, a leading advertising forecaster predicted Monday.

ZenithOptimedia, a major advertising company based in England, said that the Internet's share of advertising would rise to 9.4 percent in 2008 from 8.1 percent this year, while radio's share of the ad market would slip to 7.9 percent from 8.2 percent.

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Radio’s Newest Strategy: Play a Hit, Again and Again

From Jeff Leeds, New York Times:

LOS ANGELES, Nov. 30 — For the millions of Americans who listened to Top 40 radio last week, it was almost impossible to miss “Apologize,” the string-tinged elegy performed by the modern rock band OneRepublic and remixed by the eclectic producer Timbaland.

WIOQ-FM, a pop station in Philadelphia, played the song 123 times last week, letting as little as 50 minutes tick by between repeat spins. And this month, “Apologize” broke the record for the most plays of a song on the nation’s Top 40 stations in a single week since computerized tracking began in 1990. The song played more than 10,240 times in a week, reaching an estimated audience of more than 70 million listeners, according to Nielsen Broadcast Data Systems, an airplay monitoring service, and the chart-keepers at Radio & Records, a music trade magazine.

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ASCAP Sues WRIK/Metropolis for Copyright Infringement

From Radio Online:

ASCAP, along with other music groups, have filed a $1.5 million suit against Sun Media's WRIK-FM/Metropolis, IL, and GM Samuel K. Stratemeyer. The suit, filed on November 15 in U.S. District Court, says WRIK "willfully infringed" on copyrighted material by playing songs from the repertory of the ASCAP without license.

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Philadelphia Radio Legend, Pioneer Hy Lit Dead at 73

From Radio Online:

Rock radio pioneer and legendary Philadelphia air personality Hy Lit (aka Hyman Litsky) has died following complications of a knee injury earlier this month. He was 73. Lit had also suffered from Parkinson's disease. During his 50-plus years on the Philly airwaves, Lit worked for over ten radio outlets, before launching the Oldies format on WCAU-AM in 1990. He also hosted shows with the Rolling Stones, Elvis Presley, the Beach Boys and the Beatles.

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From Hy Lit Radio:

1968 - A Piece of My Heart.

Hyski launches Underground radio. The beginning of FM Radio. Hy Lit Pioneers FM, with artists like Janis Joplin, Jimmy Hendrix, Steppenwolf, Cream, the Moody Blues, the Who, Iron Butterfly and many more up and coming artists...

It was late 1968. WIBG had a decade long run at the top of the ratings. I personally garnered a 71 share for my Sunday night WIBBAGE hall of fame show and had 40+ shares during the week. Subsequently as a result, we were sold out, usually with 20-22 minute hourly commercial loads. When WFIL flipped to top 40 in late 1966, they basically ran commercial free for a good solid year. When WIBBAGE was playing commercials WFIL was playing music. So the listeners began to have to wait to hear their favorites on WIBG. It was only a matter of time before they would catch us. I personally went to Storer Broadcasting Management and suggested they raise the rates and cut the commercial load. But that fell on deaf ears. By late 1968, Storer Broadcasting's answer was to bring in Paul Drew, who implemented an emulation of the Paul Drake que card format. It was less talk, one-liners and a limited music rotation selection. Never a fan of the Drake type format, and having lost confidence in the accumulating management errors, I accepted a position as Vice President/General Manager at 105.3/WDAS-FM, and created HYSKI'S UNDERGROUND, a format that was a new wave of album oriented music. Simultaneously, I was also required to work the 'SOUL PATROL' 1480/WDAS AM 1-4pm daily for the first year. Ironically, this was not the first time I was on FM radio. I was already heard on FM through the 50's & 60's on Wibbage simulcast 94.1/WIBG-FM, and even earlier on 105.3/WHAT-FM (1340/WHAT simulcast), which ultimately after early frequency changes became WDAS-FM.

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Bill Moyers Journal: Media Consolidation Crisis

From Bill Moyers Journal, PBS:

We begin with big media, our favorite beat for years now. There's a new twist this week. Despite overwhelming public opposition from across the country and the political spectrum, the Chairman of the FCC, Kevin Martin, isn't letting up in his relentless push to allow a handful of media giants swallow up more of your local media.

He made it official on Tuesday: He intends to lift the longstanding ban that keeps one company from owning both the daily newspaper and a radio or television station in the same market.

From the Seattle public hearing:

"We told you a year ago, when you came to Seattle, that media consolidation is a patently bad idea, no ifs ands or buts about it. So with all due respect, I ask you: What part of that didn't you understand?

Do you think that another year of listening to the same homogenized, formulaic, mindless crap that passes for news and entertainment on the commercial dial has suddenly caused us to say, "Please, I'd like a little more of that."

Watch the video here

Senator Hatch: "I would have more if it weren’t for piracy"

Hey, wasn't Senator Hatch supporting Napster way back in 2000? Oh, that's right, he changed his mind once his chief counsel was hired to lobby for them.

From Matthew Hay Brown, The Swamp:

Lyle Lovett and Alice Peacock came to Capitol Hill today to ask lawmakers to make radio stations pay recording artists when they broadcast their music. But they weren’t the only singer-songwriters at the hearing of the Senate Judiciary Committee.

Sen. Orrin G. Hatch, a former chairman of the panel, seized the opportunity to remind the audience of his own musical career. The Utah Republican, who has recorded several CDs of inspirational and patriotic music, reminisced about receiving his first royalty check, and spoke of his gold and platinum records.

“I’ve been told I would have more if it weren’t for piracy,” he said, before Sen. Arlen Specter steered the hearing back to the issue at hand.

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Lovett Will Go To Bat For Royalty

From Brooks Boliek, Hollywood Reporter:

WASHINGTON -- Four-time Grammy winner and Texas icon Lyle Lovett is scheduled to testify before the Senate Judiciary Committee on Tuesday as the music industry continues its push for a royalty for over-the-air broadcasts.

Lovett, whose sound crosses over traditional music barriers, is expected to testify in support of the royalty for the MusicFirst (Fairness in Radio Starting Today) Coalition that is comprised of artists groups including the American Federation of Musicians, the RIAA, SoundExchange, the Recording Artists Coalition and the American Association of Independent Music.

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Senators Dorgan, Lott Introduce Media Ownership Rules

From Radio Online:

Senators Byron Dorgan (D-ND) and Trent Lott (R-MS) have introduced legislation to halt what the two call the FCC's "fast march" toward easing media ownership rules. The proposed bill will require the Commission to provide a 90-day comment period after it establishes any changes in current media ownership rules.

"We believe localism and diversity of media ownership is vital in a democracy," Senator Dorgan said. "Our bill recognizes the importance of a wide range of media owners and local content, and requires a process that does not rush past those concerns to open the gates for even more consolidation of media ownership. We believe there is value to local ownership in the media."

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New 'PPM' Ratings Do a Number on Urban Radio

From David Hinckley, NY Daily News:

New York radio got the first look at its new ratings system Wednesday, creating smiles at mainstream pop and rock stations and causing at least one urban station to say it reads like a death warrant.

"These numbers could put us out of business," said Vinny Brown, program director of WBLS. "And it's not just us. Listeners need to know this could threaten the future of black and Hispanic radio across the board."

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The Broadcasting Industry's Weak Arguments on Ownership

From Jonathan Lawson, Reclaim the Media:

Public opinion on media ownership is clear -- we prefer local voices to consolidated national voices; we want local music and culture; we want a wide range of voices and viewpoints; we want quality journalism and media that is accountable to our community values. Opposing greater media consolidation is one of the few issues on which Congressional Democrats and Republicans mostly see eye to eye.

But there is a powerful elite who are pushing hard to change the rules of the media game -- and to make it a game of Monopoly. For example, the National Association of Broadcasters represent the big media corporations who stand to gain financially from making our media system even less accountable to local communities. Mark Allen, president and CEO of the of the Washington Association of Broadcasters, has an op-ed in this morning's Seattle Times; it's an interesting read because it lays bare the weak arguments the other side is making in favor of loosening (erasing) media ownership rules.

"It is simply hilarious to suggest that media deregulation is in any way supportive of either local or eclectic music. As Seattle music industry leaders have pointed out in the past, the national explosion of a regional music scene such as Northwest 'grunge' in the early 90's, would be absolutely unimaginable in the post-1996 consolidated radio industry, with its centralized gatekeepers, "voicetracking" fake-local DJs and payola."

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Why Music-Piracy and DRM Ultimately Don't Matter

Cayocosta

With all the conjecture regarding the new-music model lately, it struck me as strange that no one appears to be considering where we’re really headed, and what the implications for the industry might be once we get there. The following is nothing new, yet appears to have been largely misplaced due to the recent resurgence of free-music myopia:

I won't venture to guess when, but it's probably safe to assume that within the next several years, increased wireless bandwidth, reach, and the propagation of wireless Internet devices will facilitate the inexpensive, real-time, high bit-rate, streaming of music just about anywhere; consequently rendering the digital download obsolete, and along with it, any impetus for piracy.

Beyond the iPod:

Rather than downloading and storing files on an iPod or similar device, all that will be necessary for a user to access his or her personal library of music will be the creation of Internet-based play-lists that are universally read by any connected device capable of reproducing sound.

Want to play your music selections at a party? Just access your library URL from the stereo, and from there select one of your play-lists or singles. While driving? Same thing with the radio. While jogging? Same thing with your cell-phone or personal player.

What will these scenarios all have in common? An Internet connection (wireless or land-line) and a subscription to a music streaming service.

Streaming Service:

Containing virtually the entire history of popular music, and paid for by way of monthly plans offered to the consumer by any number of providers, a music streaming service might, for example, charge twenty-dollars per month for unlimited access; and even less under tiered-pricing designed for less frequent users.

ASCAP, BMI, SESAC and Harry Fox:

Under such a system, all royalties generated by personal use (as well as for both terrestrial and Internet radio, potentially) would be accounted for automatically; which raises the ancillary questions of whether or not performance rights organizations will be relevant, and mechanical royalties applicable.

Piracy and DRM:

It follows that due to the convenience, prevalence and anticipated nominal cost of music subscription services, the use of P2P file sharing would drop significantly; if not (for all practical purposes) cease entirely. At such a point, piracy would literally be not worth the while, and likewise the point of DRM, moot.

Furthermore, with parents paying the subscription for the benefit of their households, those who most frequently engage in P2P file-sharing (teens and adolescents) will find themselves having no remaining musical purpose for it; and in essence, they will have been granted their wish - music will be free. Additionally, educational institutions might be offered steep discounts to subscribe their entire campuses, thus finally putting an end to RIAA lawsuits.

Summary:

None of this technology is new, it’s all been around for years. The only barrier to the above scenario becoming reality, is that streaming is not yet convenient enough - for high-speed Internet connectivity is not ubiquitous across all potential listening devices and environments.

Of course, land-line DSL and broadband systems already facilitate streaming - YouTube is a good example, whereby with a reasonably fast connection, playback is both instantaneous and contiguous. However, as land-line access means being physically connected, the application of high bit-rate music streaming is currently limited to (for the most part) these connections. As such, for music streaming to emerge as the new standard of distribution, it must also be viable in everyday mobile situations; therefore broadband wireless Internet access must become prevalent to the point that it becomes commonplace, and the new hardware necessary (wireless car radios, personal players and phones, as well as Internet appliance home stereo and entertainment systems) readily available in the marketplace.