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RAIN 04/18 NEWS: CBS HD2s & 3s WILL STREAM ON AOL RADIO, MORE RAIN SUMMIT RECAPS
·Apr 18, 10:56 AM
Posted by: Paul Maloney

EVERY CBS RADIO HD MULTICAST TO BE STREAMED ON AOL RADIO: Inside Radio reports today that new CBS Radio HD “multicast” formats (that is, alternate programming some broadcasters are using HD bandwidth to carry) will also be carried on AOL Radio as part of the two media companies’ recent arrangement. Beginning in May, every CBS Radio webcast will be featured on AOL Radio. New HD2 and HD3 formats (like “Psychic Radio” and “WNEW”) debuted this week. Other new HD multicast formats are reportedly in the works, as are new online-only channels for AOL Radio.

RAIN SUMMIT RECAP: ROYALTY UPDATE: Broadcast attorney David Oxenford, who represents small commercial webcasters in the copyright royalty proceedings, said he wished he could bring some news of progress to the Summit. But the fact of the matter is webcasters and broadcasters aren’t really in any different a position than they were a year ago when the CRB determination was made public. Given that, Oxenford based his presentation around clarifying some commonly-misunderstood points of the reality of the law, and ended with a few fresh arguments for fairness for webcasters.

  • Under the current royalty structure, broadcasters and webcasters who stream 10 songs per hour can expect to pay $10 a month for every 24 hours in which they average one listener. It’s $15 per month for those playing 15 songs an hour. Broken down to a “per listener-hour basis,” it costs 1.4 cents/listener-hour for 10 songs/hour; 2.1 cents for 15 songs/hour. Keep in mind in 2010, those rates will rise to 1.9 cents for 10 songs/hour and 2.85 cents for 15 songs/hour. Oxenford put this in context by reminding attendees that broadcast radio typically only makes less than 4 cents an hour in advertising revenue — so even a fully mature industry like broadcast radio would have significant trouble paying these rates.

  • Oxenford reminded webcasters and broadcasters that the statutory rate covers only non-interactive services and only U.S. audiences. Services need to electronically submit to SoundExchange “reports of use” for 2 weeks of every quarter, including monthly performance totals.

  • For broadcasters silencing spots from their streams for SAG/AFTRA worries, Oxenford argued the matter should be advertisers’ concern, not the station’s. He recommended that unless an agency specifically tells a station not to stream an ad, it’s cleared for online use.
As for royalty negotiations, Oxenford described discussions as “ongoing,” but conceded that there’s really no sign they’ll be resolved any time soon, and even that it will be time to file for the next round of royalty proceedings at the end of this year. Webcasters’ and broadcasters’ appeals are pending, but not anywhere close to a resolution (Oxenford said not to expect a decision until next year). And of course, the legislation know as the Internet Radio Equality Act is still pending. He concluded with the point that the RIAA and SoundExchange are making their claim for a sound recording royalty for AM/FM radio based on “fairness” (‘Internet and satellite radio pay, AM and FM should too.’). Included in the labels’ proposal for a broadcast radio royalty is an allowance for radio stations making $1.25 million or less to pay a simple $5,000 annual fee. Under current webcasting royalty rates, a webcaster making $1.25 million would pay 20 times that for the same rights to the same music. Where’s the fairness in that?

RIAA SPENT $2.8 MILLION LOBBYING CONGRESS IN 2007: According to required disclosures for lobbyists, the RIAA spent $2.8 million to bend the ears of D.C. lawmakers last year. Certainly the major label lobby group’s favorite topics included demanding sound recording royalties from AM/FM radio, justifying disabling royalties for the webcasting industry, and requests for anti-piracy laws. The group spent $2.1 million during the second half of 2007 alone.

RAIN SUMMIT RECAP: WHAT’S NEW AND COOL, PT. 1: Katz Net Radio Sales president Jennifer Lane said she relished her role as moderator of this panel and the opportunity to talk about things “new and cool,” following Dave Oxenford’s speech which brought up the frustrations of the royalty debacle. Sam Abadir, CEO of FlyTunes, focused his panel segment with the announcement and demonstration of his company’s partnership with AccuRadio for streaming AccuRadio stations on the iPhone (see RAIN coverage here). “The future of mobile broadcasting is IP delivery,” Abadir explained, “Webcasting to mobile devices.” He said his company is dedicated addressing current shortcomings in “ease of use” and “quality of service” in the world of streaming to mobile devices. American Media Services head Reed Bunzel agreed that some day, the audience on online platforms will supersede broadcast radio’s audience — in fact, all media is headed this way (Bunzel’s company, among other services, creates music channels for newspaper and other media websites). He complained, and HipCricket CEO Ivan Braiker agreed, that broadcasters aren’t embracing the interactive potential of new medium platforms like the Internet and mobile. Braiker, describing himself as a “career radio guy,” entered the mobile space because of the potential for the “great connectivity” the platform offers between content producers and their audiences. For this purpose, HipCricket builds a “powerful and parsable” database that allows radio to better connect with its listeners via mobile technology.

CONNECT NEW GRAND PIANO TO NET, SIT BACK AND LISTEN: The New York Times yesterday wrote about the Yamaha Disklavier Mark IV, a grand piano that connects to the Internet and can automatically play a continuous stream of songs based on data fed to it — in other words, a piano music Internet radio station! What’s more, “you can buy live piano parts that are designed to play along with existing CD albums. For example, as your own Elton John CD plays through the Disklavier’s speakers (or your stereo system), the keys come to life, playing the piano part along with the recording,” writes David Pogue. He reviews the piano (with video), here. Want one? That’ll be 42 grand!



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