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RAIN 12/4: Industry analyzes CBS/Yahoo!; Kawasaki to speak at Radio Ink event
·Dec 4, 12:28 PM
Posted by: Paul Maloney

EXPERTS LOOK FOR IMPLICATIONS OF CBS/YAHOO! NET RADIO DEAL

There’s lots of follow-up analysis today on yesterday’s news that CBS Radio will take over streaming and sales of Yahoo! Internet radio property LAUNCHcast (see yesterday’s RAIN coverage here). Seeking Alpha’s Fred Wilson (here) sees CBS Radio “putting together a streaming audio powerhouse” with a combination of streams from Yahoo!, CBS stations and AOL Radio making CBS a “bigger streamer than almost anyone on the web, with the exception of YouTube.” Jennifer Lane (in Audio4Cast, here) agrees, pointing out that “prior to deals with CBS Radio, Yahoo! Launchcast and AOL Radio ranked first and second independently on Arbitron’s monthly survey… (the new) combined weekly cume should climb to over 3 million.” What’s more, Lane thinks that a major investment in Internet radio from a big player like CBS will prove “meaningful to investors as well as advertisers, and good for the industry.”

Good news for Internet radio may be bad news for satellite, says Silicon Alley Insider’s Dan Frommer (here). “Via the Web, CBS’s partnership with AOL for its excellent Apple iPhone radio app, Last.fm, and other potential technologies, CBS is building an impressive Internet radio offering… Increasing, improving competition, such as Internet radio streams available via mobile phones” is now another problem facing Sirius XM, he writes.

Finally, industry attorney David Oxenford explains in Broadcast Law Blog (here) how CBS’s takeover of Yahoo!‘s Internet radio service shows how wrong the Copyright Royalty Judges were about the financial state of Internet radio. The fact that now both AOL and Yahoo! have turned their operations over to CBS “seems to emphatically demonstrate that the economics of Internet radio operations, whether stand-alone or as part of portals, simply do not justify the royalties that were imposed.” What’s more, Oxenford says yesterday’s news emphasizes the need for a special deal that allows for the survival of a class of smaller webcasters. The purpose of the statutory license, after all, is to minimize the transactional costs associated with licensing music for smaller entities and allow them to operate. “Yet by setting rates so high that only very well established media companies like CBS can survive in the industry,” Oxenford writes, “the goals of the DMCA have been undercut.”

APPLE VET KAWASAKI TO OPEN RADIO INK CONVERGENCE 2009

Guy Kawasaki, former Apple exec and Silicon Valley “icon,” will open Radio Ink’s Convergence 2009. In a press release, Radio Ink founder Eric Rhoads says he’s bringing in Kawasaki “to help explain difficult concepts to the radio industry — concepts that are needed to place radio in the sweet spot for generating significant online revenue that will outperform traditional commercial inventory. Guy will revolutionize your thinking and help you understand what you need to know.” Rhoads says the conference itself is set up to “get your head out of radio and into the digital and interactive game,” so Kawasaki’s opening should fit in nicely.

Kawasaki, after his time at Apple, launched Garage Technology Ventures and started funding start-up companies. He is a well-published author and successful investor. Radio Ink’s Convergence ’09 is February 9-10 in San Jose. Get more info and register here.

PANDORA IS iPHONE STORE’S MOST-DOWNLOADED FREE APP

According to rankings released by Apple, Pandora’s Internet radio application is the most-downloaded free application — of any variety — for the platform. The software, which allows users to wirelessly tune in to Pandora via the Apple iPhone, has been downloaded over 2 million times since the App Store opened in July. It is the only Internet radio app — free or “paid” — to make the overall Top 10. The Top 10 free apps in the narrower “music” category also include AOL Radio, iHeartRadio, FlyCast and Last.fm. Tuner Internet radio was among the Top 10 paid applications. Read more at MobileCrunch.com here.

TRITON DIGITAL MERGES MJI AND RADIO COMPANION

Triton Digital has rebranded and integrated its MJI Interactive and Radio Companion properties, it announced yesterday. MJI Interactive has been a Triton company since November 2007 and services more than 1,500 stations with web-based content and applications. Radio Companion has been with Triton since June 2008 and was the developer of search marketing tool Broadcast Results.



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