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RAIN 12/5: Execs take offense at Grammys' "Internet replacing radio" comment

Posted on: 12/05/2008

BROADCAST EXECS UP-IN-ARMS AFTER GRAMMYSSLIGHTRADIO

Radio executives are lashing out at the Grammys for comments made during Wednesday night’s nomination show which Regen Communications President/CEO Bill Stakelin calls, “a slight to the great American radio industry.” The remarks imply that the Internet has replaced radio as a tool for discovering breaking new artists.

In CBS’ broadcast of the Grammy Nominations, a video montage introduced the award “Best New Artist.” The voice-over to that montage said, “When the first Grammys were given out, artists were discovered on the radio. Today, it’s a digital world and we’re all players in it…Websites connect young artists and fans in a way never before imagined, and performers who once reached thousands of music fans now touch millions on the Internet, giving an entirely new meaning to the term ‘Best New Artist.’”

Stakelin (pictured left) responded, according to All Access, “One has to ask if the Grammy executives and/or writers of the show are ignorant of the facts or just don’t give a damn. If so, what a sorry state of affairs. I am sure that there will not be an apology or recognition for radio from the Grammys, even though it is so very vital to the success of the artists they salute.”

Cox chief Bob Neil told All Access, “It’s ironic that they would praise the Internet, since it has destroyed their economic model. What happens is people discover the music through Radio and then find a way to get it for free on the Net. I’d love to see what would happen to new music sales if radio refused to play anything newer than songs from 2000 for thirty days.”

CNET COLUMNISTRANKLED” BY PANDORA’S ROYALTY PREDICAMENT

CNET columnist Matt Asay is glad to see Pandora rising to success on the iPhone despite high Internet radio royalties, but something still bothers him. “What still rankles me,” he writes (here), “is that Pandora should be in jeopardy at all. Why would the music industry lobby to raise Internet royalties on its music, when services like Pandora, Last.fm, etc. contribute to enriching the music experience, helping would-be buyers find more music worth buying?” He argues the music industry should embrace Pandora and Internet radio because, “consumers will respond with cash for the industry. Fair trade?”

SANYO TABLETOP NET RADIO COMING TO U.S., NET RADIO WINS CES AWARD

The Sanyo R227 WiFi tabletop radio (pictured right), up until now only available in Canada, will be coming to the U.S. starting in January. The player accesses Internet radio, AAC, AIFF, MP3, WAV and WMA files stored on a networked computer and FM radio (more RAIN coverage here). The radio will be available for a cool $169.99. Read more about Sanyo’s WiFi radio at Engadget here.

Additionally, iLove’s iNT170 Internet Radio was honored at CES with the Best of Innovations award in the portable gadgets category. Wired notes (here) that “its attractive design and easy compatibility make it an attractive option.” The iNT170 is available for $200.

ORB REMOTE STREAMER BROADCASTS YOUR MUSIC LIBRARY TO ANY PC, ACCESSES NET RADIO

Orb, a free PC application, can stream your entire music library from one PC to another—turning your home music library into your own personal webcast…of sorts. Orb also features access to hundreds of Internet radio stations, along with photos, videos, live and recorded TV. Read more about Orb at the Washington Post here.

SWEENEY JOINS STREAM THE WORLD

Neil Sweeney, most recently Director/Business Development for CanWest, has joined streaming-media technology and services company StreamTheWorld as SVP. StreamTheWorld provides video and audio content to broadcast companies. Read more at Radio Ink here.

MUSIC SALES WILL BE 41% DIGITAL BY 2013, PREDICTS FORRESTER

Forrester projects that 41% of music sales will be digital by 2013. Additionally, CD revenue will drop to $9.8 billion from $10.2 billion in 2008. More at Wired here.



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Comment

  1. The recording industry seems to have scored another point in the “divide-and-conquer” department. The “Internet has replaced radio”???? Is this the same “Internet” the RIAA and Soundexchange continue to vilify and accuse of providing no added value whatsoever?

    Radio, as a general concept, is still radio, whatever the means of getting the sound to the listeners, be it a streaming server, a satellite or a transmitter on a hilltop. The sooner all broadcasters come to realize that, and that the music cartel is the real problem, the better their chances of survival.

    Art Marriott · Dec 5, 08:12 AM · #

  2. An APOLOGY, Mr. Stakelin? No apology due, sir. The comment that so offended you hits home because it’s true. If you don’t like it, do something about it. Like make terrestrial radio something other than the stink bomb it has become.

    And frankly I would love to see radio take Mr. Neil up on his offer and stop playing new artists for 30 days. I’ll bet you some enterprising souls in internet radio will be there in a flash to capitalize on such an arrogant move. He’ll wish he never made that dare.

    You might consider that “the great American radio industry” is evolving, but what is “great” now has less to do with you guys and more to do with the innovations happening online.

    As Kay said to Michael Corleone in a famous scene from The Godfather, “You are blind.”

    Irv · Dec 5, 05:07 PM · #

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