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Can Internet Radio Survive?
curunir writes: "Salon is running an interesting interview with the program manager for the internet radio station, SomaFM. He discusses some of the effects of the recent CARP recommendations (previously discussed on /. here). We all know the DMCA is bad, but this seems to be a particularly good example of where its broad nature is curbing reasonable web uses."
Consider - normal radio is portable. AM/FM stations are available wherever there are radios. Although stations have limited broadcast ranges, everyday listeners generally don't travel between cities and thus have no problems with this. Satellite radio may eradicate even this problem. But internet radio stations depend on computers - and the reality is that the vast majority of people [even some /. readers] spend time away from their computers.
So, internet radio stations are less available than AM/FM ones. In addition, they have to struggle for revenue in the same way that .com startups do - things like banner ads and subscriptions. Because there are so many stations out there, it is not economically feasible for an advertiser to put a banner ad out on a page and simply assume that enough people will see it. And many stations play continuous music/talk, without broadcast ads. This means that they're suffering through the same money pinch that the rest of internet businesses are.
So, in the end, the CARP ruling is simply the straw that breaks the camel's back. Although it's true that many internet stations offer far superior content, they suffer from some very obvious problems. They're not portable, which makes them less convienient for their audiences; their smaller audiences make advertising less profitable anyways; and because they often depend, like other internet content businesses, on things like banner ads and subscriptions, their financial situations are often precarious anyways.
So sure, the DMCA and CARP are harming the internet radio industry. But the industry was already in trouble to begin with; this might itself have caused the same kind of commercialization and consolidation that CARP will likely force on the stations.
Because if I try to set up a low-power FM station out of my bedroom here in Brooklyn to broadcast my favorite tracks to my neighbors, the FCC will throw my ass in jail for interfering with the signals of the local ClearChannel Inc. "Classic Rock" and "Alternative" stations.
The FM radio band is a scarce resource regulated by the government. In most major urban areas, there hasn't been a new station license granted in years, sometimes decades.
Internet broadcasting, on the other hand, is limited only by aggregate bandwidth. A thousand stations can sound just as good as two. And the startup costs are much, much lower: get a PC, a copy of IceCast, a $100 sound card and microphone, and suddenly you're a DJ. Sure, maybe only ten people are listening, but that's the whole point: those ten people found just the thing they were looking for.
News for Nerds. Stuff that Matters? Like hell.
I am the Station Manager for a small college station in Chicago, and I just received information from SESAC (one of the three big licensing companies) regarding their fees... I was rather concerned at first, given that we have a very limited budget, however their fees for broadcasting our signal online are only $102/year. If BMI and ASCAP charge similar amounts, it'll stretch our budget, however we'll be able to manage.
Of course, who knows how it will end up for commercial stations at this point.
-Tal
dont' ask me if internet radio can survive, read a rant by JWZ.
One interesting thing to note here is SomaFM *IS* paying to use the music, under ASCAP and BMI. They paying as a noncommercial station, about $1000 a year (college radio stations pay under the same deal). Under the CARP ruling, they would have to pay around $1000 a *DAY*.
The thing I find really disturbing about all this is the court system seems to be buying into equating Napster-like copying with legit internet-based radio stations. Yeah, I know, you can record off of a internet radio station... as you can do off a college FM station. And the quality difference isn't much off from FM (and I've rarely had my local noncommercial station lag out and get disconnects during peek time). Just because it's a noncommercial on the internet doesn't mean it should be treated any different that one that's not.
This ruling only serves to kill off the small guy, penalize the public, and let a handful of companies monopolize the radio internet radio industry.
I found it interesting that it was said that internet radio and napster are different cases. I think that given the stand being taken is that the DMCA should only be concerned with perfect digital copies, and that mp3s are not perfect digital copies, it becomes a bit hard to seperate the two.
I mean, either it's perfect or it's not - how close various lossy audio formats come to perfect is a matter of much debate and so I find it hard to see how you could impose any sort of distinction other than perfect or not perfect.
I don't know about SomaFM, but there is another really great radio station called Wolf FM that stands to be wiped from the planet if CARP goes through.
In brief, Wolf FM is a commercial radio station. They play ads and sell ads for their online radio. However, as Steve Wolf (the owner of Wolf FM and quite an incredible man) says running the service costs thousands of dollars per month *just* for the bandwidth. That's not even counting licensing fees.
It's so bad in fact Wolf FM has resorted to asking for donations because companies are not advertising on online radio, even though the response rate per impression is exponentially higher than regular broadcast radio.
This is quite serious for the growing and quite large community of Internet radio. Most broadcasters either use donated bandwidth or take the burden on themselves as a hobby, continually seeing a loss at the expense of operating a world-wide station.
These stations can't live on compliments alone. They are in jeopardy everyday just because of the costs associated with delivering the content. What CARP would do is turn the Internet radio community into exactly what they are trying to prevent - the domain of pirates.
Let's face it, when something costs more than it's actually worth, is in high demand, and is controlled by one source who doesn't bend to the rule of supply and demand, people will resort to other ways of getting it. Suddenly the lines between fair use and illegal copying get blurred, and this is how an industry fails -- or worse, consumer rights get taken away and further restricted (read: the DMCA).
If CARP gets passed, we will see an influx of pirate and distributed services like the many p2p file sharing services. The reputable and legal online stations won't be able to survive and hence they will not be paying their broadcasting dues to organizations like BMI and ASCPI, who actually have moderate pricing that allows online broadcasters to exist.
So the effect of all this will be the artists and distributors loosing money, while creating a brand new pirate industry.
It's sad really, because there is a lot of talent in online radio today and it would be a shame if it all up and vanished, which is what will happen if CARP gets its way.
"I'll just chip in a bit for RedHat: I actually have that installed on my university machine." - Linus, '95
Excuse me? Do you instantly get modded up if you mention some sort of open license be it the GPL or this OAL?
Is this guy serious? Does he think that artist will sacrifice royalties and instead try to make a living by being on the road for all the months of the year that they aren't in the studio. Sorry I just don't see this happening at all for one major reason: royalties mean that a few months of work in the studio will continue to pay for years to come. It has worked for ages and will continue to work.
Mod me down if you must but I just though a bit of common sense needed to be thrown in.
"She's a West Texas girl, just like me" - G.W Bush Iraqis