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RAIN 01/21: Deloitte analyst says Internet radio may "reinvent" industry in '09

Posted on: 01/21/2009

SAYS SMARTPHONES, WI-FI RADIOS WILL PUSH NET RADIO’S GROWTH

2009 may be the year for Internet radio, said Paul Lee, director of research of consulting outfit Deloitte. “In 2009, internet radio may not just reinvigorate the medium of radio. It may reinvent it,” the company stated. “There is a very significant difference between analog radio and what you can do with WiFi radio,” said Lee.

“The power of online is accountability, and what WiFi radio offers is accountability.” He says Internet radio will expand in 2009 thanks to a growing popularity of Wi-Fi radios and the explosion of Internet-equipped smartphones. For more, read Media Life Magazine’s coverage here.

GOOGLE PULLS NEWSPAPER ADS, PROMISES NO CHANGE FOR RADIO

Google ended its 2-year foray into newspaper ads Tuesday. The Internet company tells the Wall Street Journal (here, subscription required), that “nothing is changing” with their radio and TV ad sales. Tom Taylor observes in his Radio-Info daily email, “[Google] wants to diversify outside of its online advertising base and believes it can identify businesses that are non-advertisers who haven’t been reached by the usual sales techniques. The newspaper ‘Print Ads’ program, though, just didn’t generate enough interest for either Google or its newspaper partners.” For more, read the AP’s coverage here.

REUTERS: MUSIC INDUSTRY NEEDS TO LEARN FROMDARK SIDE OF INTERNET

With sales slumping and 95% of the music downloaded in 2008 being illegal, Reuters observes that the music industry must, “learn from the ‘dark side of the Internet’ that has so decimated its business if it is to ever regain the upper hand in the fight against piracy.” Head of embattled MP3Tunes Michael Robertson told Reuters, “When you sue a new technology, you lose the opportunity to channel that into a positive direction…There is innovation happening but it’s coming from the dark side of the Internet, from pirates, from the underground. And that is showing where the industry is going to be.” Points of good news for the music industry come from such deals with new media, like Pandora being incorporated into mobile devices like Blackberrys. Read the full article in the Washington Post here.

MAJOR NAME TALENT WILL FOLLOW INDIE 103.1 ONLINE

Dave Navarro, Joe Escalante and Native Wayne are among the Indie 103.1 on-air personalities that will follow the station online. The broadcast-side of Indie 103.1 was shut down last week (RAIN coverage here) but it continues streaming as Indie Online at http://www.indie1031.com. For more, read R&R’s coverage here.

BLOGGER RESPONDS TO WIRED ARTICLE ON MOBILE NET RADIO

Blogger CellIt writes that a recent article by Wired on the growing influence of mobile Internet radio (RAIN coverage here), “could also have been [titled] What Team is Radio Playing?” The author totals up the annual revenue from the “Interactive Radio team” — which includes smartphone manufacturers, cell carriers and the music industry — at $190 billion. He compares this to broadcast radio’s annual revenue ($19 billion) and writes, “Broadcast AM/FM Radio can build on open digital resources…AM/FM radio can win with digital but not against digital going mobile.” Read the full blog post here.



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