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BY RON RUBIN
FOR "RAIN: Radio And Internet Newsletter"
I am glad that RAIN had the opportunity to speak with Kevin
Shively regarding the negotiations that a handful of
small  webcasters
have had with the RIAA
(please see RAIN here).
The characterization, that appeared in the press, that "we are very
close to a deal" is, at best, someone being overly
optimistic.
This is an industry that is very much in an embryonic stage,
and any deal should reflect current market conditions. We all agree
that there is tremendous "upside potential" for the Record companies,
recording artists and the webcasters to financially benefit from
Internet radio.
The comparison that I like to make is that, in our evolutionary
development, we are much like FM Radio
in the late 1960s. Innovative content is driving listeners
to our medium, and as we start to build critical mass, we can then
begin to make a compelling case to advertisers to financially support
our endeavors. Only then, will there be money for everyone.
Right now, the one thing that all webcasters, large and small,
have in common is that none are
making any money. That economic reality dictates the type of deal
that needs to be crafted for our industry to survive.
The latest Arbitron/Edison Research Study (see RAIN
coverage here)
indicates the promotional value of Internet radio. In my opinion,
it is the most compelling promotional
vehicle to come along since MTV.
Although there is little money in our piggybanks, and little
investment capital available to any of us, we do have a tremendous
number of listeners who enjoy our content every day.
I would hope that the Record companies would seize the opportunity
to leverage the promotional opportunities to reach a huge at-work
 audience,
through our Internet radio ventures. Many of us would be willing
to craft barter deals with the
record industry for advertising inventory and "on air" contests
and promotions. I am sure that some companies might even welcome
an equity investment from these companies.
There are, perhaps, less than 100 small independent commercial
webcasters. These account for a sizable listening audience. If all
parties are willing to view the negotiating process with a long-term
perspective and some out-of-the-box thinking, then I think we can
move forward in building a strategic relationship that will fulfill
all of our goals.
As webcasters, we have focused on building our businesses
and growing our audiences. We have felt that the payoff would be
down the road. If the artists and record companies can embrace a
similar philosophy and work with us toward building a vibrant Internet
radio industry, the pay off will be there for them, as well.
Let's find constructive ways for everyone to benefit.
Ron Rubin is founder of Boomer
Radio.
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next step in untethering Internet-delivered
radio from the PC, and further integrating
it into consumers' everyday life in the home.
station. It allows users to create their own
unique version of their favorite station – increasing
or decreasing airplay of songs or artists – while maintaining the
station’s imaging throughout their own promos, liners and jingles."
