Last week we broke the news on a previously-stealthy mobile carrier called Republic Wireless, which I’ve been tracking closely since. The story so far: Bandwidth.com, which provides the VoIP backbone for services including Google Voice and Twilio, is launching an alternative mobile carrier called Republic Wireless.

As GigaOm reported last week, it will cost only $19 a month for unlimited text, data, and voice. It can offer these low rates because its phones use a special ‘Hybrid Calling’ system that relies on Wifi whenever possible, falling back to cellular connections when Wifi isn’t available. The initial cellular partner is Sprint, but Republic is working to use other carriers as fallback options as well.

Now the company has officially announced additional details about the service, which just launched.

The key new details:

The first phone being offered by Republic Wireless — which users will need to buy in order to use the service — is a modified version of The LG Optimus, running Android 2.3 (Gingerbread). This phone is offered by other carriers and is generally regarded as a solid low-end device (it’s not going to look great next to a Galaxy S II, but it’ll more than suffice for a lot of people). The device will be sold for $199 with no contract, and it will be available at a discounted rate of $99 through November 27. Again, that’s with no contract — there are no termination fees.

Here are additional details from the press release:

The first month of service bundled with the start up fee
An LG Optimus smartphone running Android 2.3 (“Gingerbread”)
Month-to-month freedom from contracts and termination fees
Unlimited voice minutes
Unlimited text messages
Unlimited data megabytes
Automatic default to Wi-Fi when in range
Automatic Voice over Internet Protocol (VoIP) calling over Wi-Fi
Internet protocol texting over Wi-Fi
Nationwide cellular coverage when Wi-Fi isn’t available
No overages or roaming fees, ever
No-risk, 30-day money back guarantee

Here are additional details from the Republic Wireless site, which just went live:

The service relies on users logging onto their Wifi. Republic Wireless says that people are around Wifi about 60% of the time, and you’re expected to log on when you can — the phone will montior your ‘Cellular Usage Index’, which plots how much data you’re sending over Wifi vs a cellular connection as compared to the rest of the community. Here’s the catch: if you’re routinely using a lot of cellular data, then the service reserves the right to boot you.

“Everyone’s entitled to a bad day, week or month. Kicking the cell habit, however, isn’t for everyone. Membership here is a privilege. So, over time, if you don’t bring your CUI back into a reasonable range, we’ll help you find a more suitable, traditional cellular carrier.”

But this probably isn’t as bad as it sounds. I’m personally near Wifi all the time, so I’m not too concerned about overusing my cellular connection — and the site says you could use 550 minutes, send 150 texts, and download 300 megabytes without using Wifi at all and not be at risk of receiving a warning.

So why is this a big deal?

There are other plans out there that are relatively inexpensive compared to the ridiculous smartphone bills we’re used to — notably Virgin Mobile, which offers $35 no-contract plans with unlimited data and texting. But this is cheaper than Virgin, and I think it has far more disruptive potential down the line (after all, Virgin Mobile is owned by Sprint).

There’s also the Wifi-based calling, which I think is a killer feature on its own (I recently wished aloud that Google Voice would offer VoIP calling via an Android app). The fact that I’m constantly surrounded by Wifi networks and still have to deal with dropped calls and bad cell coverage is maddening at times — having a phone that can automatically switch to Wifi whenever possible would go a long way toward solving that.

Yes, there are other phones with Wifi calling that are already available (T-Mobile offers an app on some Android devices that can do this), but you still need to buy a full-fledged T-Mobile plan to get them to work. Republic Wireless is less than half the price of a T-Mobile plan.

I still have plenty of questions that won’t be answered until I have a device in my hands (I’ll be buying one the moment they go on sale). Does the phone seamlessly take care of the handoff between Wifi and the cellular network? What kind of data speeds will I get on Sprint? And are there any other unforeseen gotchas?

But I’m — dare I say it — excited. This really could be disruptive, and while I think it might take some time to pick up steam, the $20 monthly price point has a very broad appeal.

Sounds like they have some more exciting handsets in the pipeline, too. In a comment below, Bandwidth.com SVP and General Manager of the Mobile Division Brian Dally writes:

“Arron, we like the Galaxy too (pun intended). We’re launching our beta with just one, but more phones are on the way….”

(For those who missed it, that was a reference to Samsung’s Galaxy S II).

From the site’s FAQ:

How do I make Wi-Fi calls?
Dial as you would any other call. There’s no app to open up or second number to manage. You don’t have to click a special button or take any special action. Instead, once you’re setup for a Wi-Fi network, your republic smartphone connects and routes calls over Wi-Fi automatically.

How can I make sure that I am connected to Wi-Fi all the time?
First, make sure you set up your phone to access the Wi-Fi networks you frequent. Your phone will remember those networks and connect to them automatically. Want to login to public hotspots? Download one of several apps available from the Android Market to automate that for you.

Can I bring my own phone?
No. The ultimate in smartphone freedom would be using the phone you want, on the network you want, whenever you want. We agree… and are working toward that ideal. For now, Big Cell makes the rules. Android phones, Wi-Fi and the Web fuel our optimism that the future could look very different.

Can’t I just download this to my current phone?
No. There are, however, many apps you can download to make VoIP calls over Wi-Fi using any Android or Apple smartphone. Some of them require you to manage a second number, pay for minutes or take special steps to use them. All of them require you continue overpaying for a cellular plan. Only republic wireless provides Hybrid Calling that’s not only built into the phone, but also into the price.

Only one phone? What’s that all about?
The LG Optimus is our first phone, and there will be more to follow. Affordable and well reviewed, we assure you this first phone is very well endowed with our Hybrid Calling technology and “Gingerbread,” Google’s code name for Android version 2.3. What phone should be next? Tell us with an email to yourvoice@republicwireless.com.

I have DSL at home. Will it work on that or will I have to upgrade to something faster?
You need about 80kbps both ways to hold a call. The more bandwidth the better for improved call quality. Don’t forget that streaming video or downloading large files all use bandwidth, so your mileage may vary if you are trying to make or receive calls and watch Netflix at the same time.

Here’s a quote from David Morken, CEO and cofounder of Bandwidth.com. (I rarely include these press release quotes, but this is a good one):

“We hold this to be self-evident: that the best, fastest, and highest-value network is the Wi-Fi you already have in your home and office” said David Morken, co-founder and CEO of republic wireless’ parent company, Bandwidth.com. “We believe that most smartphones should be communicating over Wi-Fi natively, and only using cellular spectrum if needed, not all the time,” said Morken. “The cellular emperor has no clothes – smart consumers have been clamoring for someone to unlock the value of our home and office networks for years. republic wireless uniquely delivers what they’ve been asking for. Our beta, launched today, ushers in a new era in wireless and is the beginning of our mission to bring customers unprecedented value.”

proves that BEETmobile is the right way and ahead

Hype vs. Loyalität – Startup Cities in der Diskussion

Vom: 4. November 2011 | Von: Hanse Ventures | Tags: 1000mikes, airbnb, amen, beetmobile, Berlin, betahaus, Entrepreneurship, gidsy, Hamburg, ibm, kinderfee, rally, Start-up | No Comments »

„Startup Cities – Startup something meets Gründer Workshops“, dies war der Titel der gestrigen Veranstaltung im Betahaus Hamburg. „Startup something“ ist entstanden, so der Gründer Wolfgang Wopperer, weil er „irgendwas mit Start-ups“ machen wollte. Und dabei ist es geblieben. Yasha Tarani, Daniel Jäger und Serhat Kaya organisieren mit „Gründer Workshop Hamburg“ regelmäßige Treffen in Hamburg, um die Gründerszene Hamburg zu stärken, sich untereinander zu vernetzen und eine Plattform zu bieten, seine Ideen und Konzepte vorzustellen sowie um Gleichgesinnte, potentielle Co-Gründer und Mitarbeiter zu finden.

In einer gemeinsamen Veranstaltung von „startup something“ und „Gründer Workshop Hamburg“ ging es gestern um „Startup Cities“, konkret um Hamburg und Berlin. Da Berlin gerade von allen Seiten, wohl aber insbesondere von Berlin selbst, gehyped wird, war eine brandheiße Veranstaltung zu erwarten. Entsprechend war das Betahaus gut besucht, denn auch die Speaker ließen auf eine spannende Diskussion schließen. Dabei waren die Vertreter für Hamburg AirBnB, 1000mikes und BEETmobile sowie die Berliner Startups Rally, Gidsy und kinderfee. In der Diskussion, geleitet von Wolfgang Wopperer, ging es anfänglich um die Gründe für die Standortwahl und später um den Hype Berlin. Frank Felix Debatin von 1000mikes ist der Ansicht, Hamburg sei für „Hype-Startups“ ungeeignet. Katrin Schmidt von AirBnB Deutschland erzählte, dass sie sich bewusst für Hamburg entschieden habe, weil die Hansestadt Nachhaltigkeit und Loyalität ausstrahlt – und dies sei schließlich das Versprechen von AirBnB. Es spiele folglich eine Rolle, welche Art von Unternehmen gegründet werden soll.

Einem Startup wie aktuell Amen wäre außerhalb Berlins wahrscheinlich nicht eine solche Aufmerksamkeit entgegengekommen. Derzeit schauen alle, insbesondere die Medien, auf Berlin. Dort trifft man überall „die Spinner“, die man für Startups brauche, so entstehe der Magnet für die jungen Menschen. So entstehe der Hype. Weil es aber kaum „Old schooler“ in Berlin gibt, die das Fundament einer soliden Startup- bzw. Internetkultur legen, könnte dieser Hype auch schon bald wieder vorbei sein. In Berlin seien die Preise fürs Leben und Arbeiten noch immer geringer, aber in Hamburg bekäme man gefühlt die zuverlässigeren Mitarbeiter. Die Teilnehmer waren sich zumindest bezüglich der „Coolness“ und der Lebensqualität darüber einig, dass sich Hamburg mit der Schanze und dem Kiez nicht vor den Berliner Stadtteilen Prenzlauer Berg, Neukölln und Kreuzberg verstecken müsse.

Für Getränke und Snacks -auch das sei hier erwähnt- sorgte IBM und stellte auch gleich sein Global Entrepreneurship Programm vor.

Fazit: Eine tolle Veranstaltung, die auch wieder einmal die Möglichkeit bot, um sich mit Gleichgesinnten und Andersdenkern zu unterhalten und zu vernetzen. Ich freue mich schon auf den nächsten Event. Informationen zu Gründer Workshops Hamburg gibt’s immer aktuell in der Facebook-Gruppe: http://www.facebook.com/groups/205400992838812/

Wolfgang

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LeWeb 2011

Just 2 clicks for you and a giant step for us: 

Please vote for BEETmobile to present on stage at LeWeb’s startup competition 2011!

Although many investors are spinning for the chance to invest in Turntable.fm, the hot music startup has not yet picked a DJ, despite reports to the contrary. Business Insider claims that Turntable has raised $7.5 million at a $37.5 million valuation and “that term sheets were indeed signed yesterday.” But reached a few hours ago as he was boarding a plane, co-founder and chairman Seth Goldstein told me, “We have not closed any new financing.”

There is certainly a lot of interest in Turntable from VCs who want to fund its next round. The buzz among venture investors is that there is intense competition for the deal, particularly between Union Square’s Fred Wilson, Accel, and Kleiner Perkins. Wilson is the clear favorite (Turntable is based in New York City), but he is being outbid by Accel and Kleiner.

The rumor is that Wilson is offered Turntable a $25 million pre-money valuation, while Accel and Kleiner offered double. That could have easily been pushed up to $30 million pre-money, in which case the $37.5 million figure would pencil out as a post-money valuation. (Just remember, VCs send signed term sheets all the time. It doesn’t mean the company has to accept the terms).

Not only are top-tier VCs excited about Turntable, there’s even some potential acquirers sniffing around, including AOL, Facebook, and Sony. As far as I can tell, no formal offers were ever made because co-founders Goldstein and Billy Chasen just got this started and don’t want to sell. Plus, they obviously aren’t having any problems raising money.

Why is everyone going gaga over a startup that launched with a completely different product, Stickybits, that never went anywhere? Turntable is a social music site where you enter different listening rooms in which players can become DJs and spin music while chatting with each other’s avatars. Chris Sacca likes to hang out there a lot (he is a previous investor, along with First Round and Polaris). It’s been gaining some impressive early traction, even though you still need to know someone to get in.

It is social music discovery at its best. You can listen to hours of full-length songs selected by other players in a variety of different themed music rooms. The better the DJ, the more points everyone else rewards him with. And if you like a song you can add it to your playlist, or buy it through Amazon or iTunes.

But the business is not a slam dunk. Turntable pays per-stream fees just like Pandora or other “Internet radio” services. The music labels could decide to crack down on Turntable and try to extract higher fees. But Turntable’s early growth and engagement numbers are too high to ignore. People spend hours in these rooms. Maybe this time, the labels won’t kill it before trying to work out a deal. Even then, though, Turntable will have to find other ways to make money—perhaps through digital goods or better avatars, sponsored rooms, or some people might be willing to pay to be a featured DJ.

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CrunchBase Information

Turntable.fm

Website:	turntable.fm/lobby
Location:	San Francisco, California, United States
Funding:	$7.5M

Turntable.fm is a project of Seth Goldstein and Billy Chasen, the two guys who brought us… Learn More

Stickybits

Website:	stickybits.com
Location:	New York, New York, United States
Founded:	2009
Funding:	$1.9M

Stickybits brings the physical and digital worlds together with barcode stickers which trigger audio, video, photo, and text messages when scanned. The product is a mobile app for the iPhone and Android phones which lets users scan barcodes, attach… Learn More

Information provided by CrunchBase

Flattr, the social micropayment startup founded by ex-Pirate Bay associates, has added Soundcloud integration to make it easy to add the Flattr button (and start receiving payments) to any SoundCloud player, including those embedded anywhere across the web. Interestingly, SoundCloud already has an existing arrangement with Flattr competitor BuySimple.

Flattr’s support for SoundCloud follows a similar recently announced tie-in to Twitter, which makes it easy to tip somebody’s Twitter account with real money, although who on earth would pay for my nonsensical tweets, I’m not so sure. But it does bring into focus the company’s strategy to become a sort of ‘Like’ button but with real money, even if post-launch Flattr has slowly and perhaps stealthily begun to deviate from its more altruistic and slightly idiosyncratic payment model into something more mainstream.

In January, the service began letting users donate specific amounts of cash directly rather than relying solely on the albeit innovate model of simply divvying up a pre-allocated monthly pool of cash (starting from €2), no matter how thinly that’s spread if a user chooses to “Flattr” a high number of sites.

More recently, Flattr dropped another one if its oddities, no longer requiring new users to add credit to their accounts in order to run the Flattr button on their own sites and start receiving payments. A move that we noted at the time paves the way for Flattr to migrate further towards the holy grail of peer-to-peer payments (think: mobile phone as wallet) in which handing over cash digitally becomes as easy, if not easier than it is physically. With regards to Twitter and now SoundCloud that may already be case.

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CrunchBase Information

Flattr

Website:	https://flattr.com
Location:	Malmö, Sweden

Flattr is a micropayment system - more specifically, a microdonation system.

Flattr is a project started by Peter Sunde and Linus Olsson. Users are able to pay a small amount every month (minimum 2 euros) and then click Flattr buttons on sites to… Learn More

SoundCloud

Website:	soundcloud.com
Location:	Berlin , Germany
Founded:	August, 2007
Funding:	€12.5M

SoundCloud is an audio platform that enables anyone to upload, record, promote and share their originally-created sounds across the web, in a simple, accessible and feature-rich way. Its open platform also supports a wide range of applications built… Learn More

Information provided by CrunchBase

The artist formerly known as Extension Entertainment, now known simply as exfm, has officially gone mobile today, releasing its first mobile app for iOS. I’ve been enjoying exfm for a few months now through the startup’s Chrome extension, so I’m very excited to be able to finally bring that experience with me on-the-go.

For those not familiar, exfm is a social music discovery platform that basically turns the Web into your music library. As you go about your daily web wanderings, exfm’s extension dutifully gathers each and every MP3 file that crosses your path, collecting these tracks into a music library that users can play, organize, make into playlists, and share with friends.

For anyone who’s ever said something along the lines of, “now what was that awesome track I heard earlier today on that music website? I can’t remember, I guess I’ll have wade to go through my browser history to … ah, nevermind”, exfm is for you. With the entire Web as exfm’s canvass, this means that music lovers have access to some 20 million songs — at least half of which weren’t created Lady Gaga. That’s a fairly robust library, to say the least.

Back in December, exfm added Twitter, Facebook, and Tumblr integration to its suite of features, and because exfm remembers where it found the songs, it can stream from the host site at any point, even if you don’t revisit the page — and see what others are listening to on your favorite blog and social media sites.

Of course, exfm doesn’t just autoplay every song on a site while you’re there, it simply indicates how many songs its found, allowing you to “play all”, or hear individual songs and add them to your queue. What’s more, the extension’s equivalent of the “like” or “favorite” button is “note”, which allows you to tag (or note) those songs on your exfm profile so that your friends can see what you’re listening to.

exfm’s iOS apps take all the functionality of its extension, like access to your noted tracks, a feed of songs from people you follow, and adds a few cool new features like a “Tastemakers” section, which automatically pulls in songs from music blogs like Spinner, MTV Hive, I Guess I’m Floating, and more.

Another two noteworthy features are the app’s Last.fm integration, which lets users scrobble their music to Last.fm, and access and play all local music files stored on your iPod — with the built-in iPod controls in tow. And, hey, complementing local play is the ability to easily purchase songs from iTunes, just in case you’re itching to buy that song and play it across your devices.

Since it’s inception in March 2010, the platform has gained nearly 50K users, and there’s no doubt this number will explode with this nifty little Pandora and Last.fm companion hitting iOS. exfm raised $750K in seed funding in April of this year from Spark Capital, Betaworks, Founder Collective, and Dave Morgan, adding to the $500K it raised back in May 2010.

All in all, exfm’s iOS app pretty much the bases, and for version 1.0, it works pretty well. Not too many kinks to speak of. Check it out on iTunes here.

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Extension Entertainment

Website:	ex.fm
Location:	New York, New York, United States
Founded:	2010
Funding:	$1.25M

Exfm is a social music discovery platform that turns the entire web into your personal music library. As you browse the web, exfm gathers every MP3 file you come across, building a music library for you. Exfm makes it incredibly simple to share your… Learn More

Information provided by CrunchBase

Last week, the initial public offering of Pandora—the Internet radio service that recommends music based on a listener's tastes—put the company's colossal impact in the headlines: Its technology had set new standard by connecting 90 million registered users to music they barely even know they wanted.

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Matthew Septimus courtesy of New York Public Radio NYWNYC

Steve Martin, above center, and the Steep Canyon Rangers performed last month at New York Public Radio's Greene Space.

In its shadow, terrestrial radio stations might seem destined for oblivion, especially the listener-supported public stations that specialize in niche markets like classical music and jazz. But in fact, two of the area's top purveyors in these genres—the all-classical WQXR and all-jazz WBGO—are embracing digital tools to position themselves as thriving multi-platform hubs. Even as the jazz and classical music industries face their own troubles with record sales and concert attendance, the stations that distribute the music are poised for a renaissance, fueled by live-streamed performances, HD broadcasting, social media and mobile applications. And it's not a moment too soon: As jazz and classical are increasingly abandoned by commercial radio, embracing digitization supports the music and expands their artistic communities.

"The overall numbers have been relatively flat over the past several years," said Cephas Bowles, president and CEO of the Near-based WBGO, of terrestrial radio. "Digital technology and program delivery is ushering in what could be called the second golden age of radio by making radio content more accessible to more people wherever they are."

On Wednesday, WBGO will kick off its new jazz performance series, the Checkout: Live from 92YTribeca, which can be watched via live stream on the station's website, seen in person at 200 Hudson St. (advance tickets are $12), or heard over the radio and Internet. Hosted by Josh Jackson, the series is an extension of the station's current hour-long radio program and podcast, the Checkout.

This comes as WBGO—which became New Jersey's first public radio station in 1970—is adding an HD broadcasting channel at 88.3 FM that will focus on emerging jazz artists—as well as installing a broadcast antenna in Manhattan to improve reception throughout the metropolitan area. "Everything we do is centered around broadcast, but then we branch off into these other distribution platforms because people are going there," Mr. Bowles said. "You want to reach people where they are."

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Vincent Soyez

Pianist Dan Tepfer will kick off WBGO's new jazz performance series on Wednesday.

The idea of "reaching people where they are" renews the concept of "wireless," which, though it resonates as a modern innovation, was originally a term that referred to radio, before the format was superseded by television and the Internet. Today WBGO boasts between 350,000 and 400,000 listeners weekly, as measured by the media and marketing research firm Arbitron. The largest segment of that audience is between the ages of 35 and 65. When the station added video years ago, notably of shows at the Village Vanguard, younger viewers started watching and commenting. "While 75-year-olds may be tweeting and 55-year-olds may be online, the video experience is something younger people are embracing in a bigger way," Mr. Bowles said.

Video of performances is also a key element for WQXR, which is owned by New York Public Radio and boasts some 700,000 weekly listeners. "We see ourselves increasingly as a trans-media company," said Thomas Hjelm, chief digital officer of New York Public Radio, which also owns WNYC and the Greene Space, the street-level broadcast studio and stage at Charlton and Varick streets. "We're leading with audio. It's what we do best. But we do have opportunities with other platforms."

In the fall, WQXR.org will be redesigned to emphasize accessibility. Its website regularly live-streams classical performances from the Greene Space. The station broadcasts in HD (the stream emphasizes contemporary composers who are working today), and a mobile application is in the works—for both WQXR and the entire New York Public Radio company. "We want to create a hyper on-demand experience so you can customize your radio listing experience and optimize it for your mobile device," Mr. Hjelm said.

In the classical genre, the opportunity for radio, he noted, exists because of two conflicting developments. "The old traditional recording industry is pretty much moribund. However, classical music doesn't really lend itself to the download, iPod culture." (Digital music players are ill-equipped for the nuances of classical: they often scramble the sequencing of a classical CD.)

But the genre does lend itself to streaming Mozart on your computer all day. "Our online audience is growing," Mr. Hjelm said. "There will be a day when our online audience eclipses the on-air audience. And we want to be ready for that."

Indeed, across radio, online listenership is growing steadily, according to a recent Arbitron study. In 2011, 22% of the American population (ages 12 and up) reported having listened to online radio in the last week. That was up from 12% in 2006 and 5% in 2001.

The jumps follow the proliferation of faster broadband connections and radio stations embracing digital platforms, said Arbitron's senior vice-president for marketing, Bill Rose. Video won't kill the radio star this time around. Quite to the contrary, it may make radio. As Mr. Jackson, the host of the Checkout, put it: "What good radio does is provide context—and that's no different if you transfer it to another platform."

Mike Agovino is the Chief Operating Office with Triton Media Group, a leading provider of applications, services and content to the media industry, specifically radio, with more than 6,000 station affiliations.

Not long ago the music Industry was raking in $40 billion a year in sales. Today it sits at around $15 billion. Radio, once a $20 billion industry, is hanging on at a respectable $17 billion but faces significant challenges from a combination of new competitors pursuing its audience and advertising revenue while the overall trend toward digital advertising continues to divert budgets away from traditional media.

No matter what you believe, one thing is for certain; radio faces more competition for audience than ever before. Just the number of phone conversations occurring in the car each day would logically have to put a dent in time spent with radio.

As we move forward the challenges will only intensify as marketplace disruptors make their presence felt. Personalized music services like Slacker and Pandora have been aggressively building audiences online over the past eighteen months. With Pandora’s IPO this week, it now has a fresh influx of cash to keep investing in expanding its service.   In just the past few weeks Amazon, Apple and Google have entered the equation announcing cloud based music services. They join a crowd that already includes the likes of Rhapsody, Rdio and Spotify, which is rumored to be announcing a big deal with Facebook. Business plans for these companies clearly identify the battlefield as the mobile device and automobile. For years those of us in radio have referred to the car as a “radio with wheels”.

Some in the radio business don’t see these “pure” players as competition because they are based upon computer algorithms rather than professional curators. However, seeing these companies as anything other than competition is short sighted. Over time these companies will add more sports and talk programming and probably use some of these same technologies to build recommendations and playlists of spoken word content. Slacker recently announced deals with ESPN and ABC News while Pandora launched a new comedy service. Online companies are building audience and a portion of that audience is coming from terrestrial stations. Soon, if not already, the online players will reach scale where they can sell the value of their audience to the same local advertisers to which radio sells ad inventory—that’s a competitor in my book!

So, what next for these two long time allies, radio and record labels?

The record industry’s solution has been to re-think free access to music performances by radio stations and lobby congress to institute a first ever over-the-air royalty.  Over the air radio has been exempt from a performance royalty by a decades old understanding, but its online offerings are not. Terrestrial stations must pay a hefty royalty for performances that are streamed over the Internet.  Pure plays, or internet-only stations, pay lower royalties than over the air broadcasters do—in some cases the difference is very large.

I’ll skip the history lesson and just tell you that broadcasters who stream music content pay nearly $2.00 for every thousand listeners who hear a song. Those fees are scheduled to increase over the next few years to around $2.40 for the same thousand listeners. The average music station that streams is playing around 13 songs an hour. Those same stations are selling about six ads per hour and filling the rest of their break with PSAs and filler music (In the long term radio will come to find that they can’t serve more than 6 or 8 ads an hour online so today’s sellout rate is not the issue). With twice as many songs played as ads sold the impact of the royalty is a double-whammy, costing the broadcaster about $4.00 per thousand exposures to an ad.

There are other costs to streaming as well. You’ve got to pay ad agency fees and sales commissions as well as hosting, ad serving and measurement fees. All of this has an additional $2.00-$3.00 impact. Depending on the size of the broadcaster, total costs are somewhere around $7.00 CPM. My firm provides services to both pure plays and broadcasters, so we have some visibility into the current advertising economics in the space and present day monetization levels are around $5.00 CPM. In other words, broadcasters who stream their content are not turning a profit doing it.

The audience will continue to migrate online and radio brands need to make sure they exist where and how the audience wants them. Radio and record labels need to find business models that build value for both industries in this new world. Negotiations between the two have been on and off for years now with no resolution in sight. The music industry, broadcasters, artists and consumers are going to continue to take it on the chin if we can’t get these problems resolved. The future for both is better together than apart.

There’s an old saying that “you can’t stand in the way of technology” and it’s true. As much as many in radio and records would love to turn the clock back and protect their existing way of life . . . it’s not going to happen.

Here’s my suggestion, institute an over the air royalty that starts at one percent of revenue and escalates to five percent of revenue over the next 10 years, then remains at that number in perpetuity. At the same time, institute a new set of streaming fees that start at twenty five percent of revenue and decline to five percent over the next 10 years and remain there. An all-in, five percent revenue share across the board in 2021 would allow broadcasters to anticipate and structure accordingly while also allowing the labels to bring in hundreds of millions of dollars today and billions in revenue over time. On the flip side it would let the labels participate in a meaningful way while not preventing broadcasters from building a profitable online business.

I believe in radio’s future but only if radio makes an aggressive online play and that play can not be made without the music industry helping to build that future instead of holding onto the past.

Photo credit: Kirsten Geyer

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Mike Agovino

Companies:

Triton Digital

Mike Agovino is the Chief Operating Office with Triton Media Group.

Agovino has more than 25 years of executive experience, having served as President of Katz Radio and Katz Interactive, COO of Clear Channel Radio Sales, and co-COO of Interep… Learn More

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April 07, 2011 01:20 PM Eastern Daylight Time 

Triton Digital Media’s Webcast Metrics Achieves Media Rating Council Accreditation

Data Collection Methodology, Metrics, Presentation and Reports Validated for Compliance with MRC Standards

LOS ANGELES--(BUSINESS WIRE)--Triton Digital Media’s Streaming Division, previously known as Ando Media Group, (www.tritondigitalmedia.com) today announced that the Media Rating Council (MRC) has accredited the company’s Webcast Metrics® product. Webcast Metrics' data collection methodology, metrics¹, presentation dashboard and reports were audited by an independent CPA firm and reviewed by an MRC audit committee, which led to the accreditation of Webcast Metrics by the MRC. The digital audio measurement platform measures thousands of online digital streams in real-time through a comprehensive performance analytics dashboard that is accessible to Triton Digital clients. The Webcast Metrics product is now validated through the MRC’s accreditation as having met these important industry standards for media audience measurement services.

“Triton Digital Media is to be congratulated for the accreditation of Webcast Metrics”

“Triton Digital Media is to be congratulated for the accreditation of Webcast Metrics,” said George Ivie, Executive Director and CEO of the MRC. He added, “Its commitment to quality, as evidenced by its commitment to the MRC accreditation process, demonstrates the seriousness with which it takes its leadership role in the streaming audio measurement space.”

To oversee the continued efforts and resources required to maintain Webcast Metrics’ accredited standing Rob Favre, former Ando Media Group SVP, will transition to the newly created position of Chief Compliance Officer and General Manager of Data and Analytics for Triton Digital’s Streaming Division. “Since joining Ando Media in 2008, Rob has provided the technical leadership and vision that has made this milestone possible and helped to solidify our company as a leader in the streaming industry,” stated Yves-Eric Laliberte, President of Triton Digital’s Streaming Division. “We look forward to having Rob assume these new responsibilities while continuing to be a key contributor to the growth of our company.”

“The online audio space is rapidly expanding. Advertisers and agencies are putting meaningful budgets to work with our clients. MRC accreditation is a critical next step that ensures both buyers and sellers can have absolute confidence in the audience data they plan and negotiate with. Moving forward we will continue to improve and innovate our offerings, providing the marketplace with the best data possible,” said Favre. “I take the challenges involved in my new role very seriously and am excited to be part of this rapidly expanding industry.”

Webcast Metrics is a unique measurement platform which does not rely on memory, opinion or input from consumers. The analytics platform is server-based and accessible on-demand for custom audience analysis. The customizable dashboard feature allows Triton Digital customers to analyze and compare audience metrics on many levels. The service is licensed by hundreds of broadcasters and pure play online services.

The Webcast Metrics accreditation adds Triton Digital to the ranks of other MRC accredited companies, including Google, Microsoft and Nielsen. To see a full list of accredited companies and services and those under review by the MRC, go to www.mediaratingcouncil.org.

About The Media Rating Council

The MRC is a non-profit industry association established in 1964 composed of leading television, radio, print and Internet companies, as well as advertisers, advertising agencies and trade associations whose goal is to ensure measurement services that are valid, reliable and effective. Measurement services desiring MRC Accreditation are required to disclose to their customers all methodological aspects of their service; comply with the MRC Minimum Standards for Media Rating Research; and submit to MRC-designed audits to authenticate and illuminate their procedures. In addition, the MRC membership actively pursues research issues they consider priorities in an effort to improve the quality of research in the marketplace. Currently approximately 60 research products are audited by the MRC. For more information on the MRC or becoming a member of MRC, please visit www.mediaratingcouncil.org.

About Triton Digital Media

Triton Digital is the leading digital service provider to traditional and online radio with a rapidly expanding roster of media clients emerging from the television and print space. Our infrastructure, applications, and innovation are powering digital audience and revenue growth for clients around the globe. We make digital content extensible, personal, social, and profitable. Triton Digital Media is a portfolio company of funds managed by Oaktree Capital Management, L.P., a leading global investment management firm.

¹ Accredited metrics include: AS, AAS, SS, ATSL, TLH and non-IP address based CUME

RAIN 2/24: For NPR users, apps have their place but website still king
·Feb 24, 11:12 AM
Posted by: Michael Schmitt

NPR iPAD APP USED MOST LIKE A RADIO

NPR Digital Media’s Web Metrics Analyst Sondra Russell recently published an interesting graph outlining the relative audience sizes of NPR’s website and mobile apps. The graph also shows how much of a “lean forward” or “lean back” experience each site or app is, as well as audio usage. So what can Russell and all of us learn from the graph?

First off, “the Main Site is still kicking butt,” writes Russell. The graph shows the main website as a large circle, but the mobile apps as tiny dots. In fact, the most popular NPR app — their iPhone News App — is only “5% the size of the main site; the others are between 1% and 2%.”

The graph also shows that NPR’s iPad app is the most “radio-like,” with users listening to a lot of audio in a “lean back” experience. “Statistically speaking,” writes Russell, “85% of the audio requests on the iPad are for long continuous streams provided by stations. In other words, 85% the time, people are using it like a radio. In some cases, they’re even leaving it on their nightstand.”

You can read Russell’s full, often zen-like article here.

eMARKETER: FACEBOOK REACHES OVER HALF OF U.S. INTERNET USERS, TWITTER LESS THAN 10%

A new report from eMarketer shows that more than half of U.S. Internet users accessed Facebook at least monthly by the end of 2010. The report predicts that 62% of web users and almost half of the total U.S. population will use Facebook by 2013.

Meanwhile, 9% of the U.S. adult Internet population used Twitter by the end of 2010. Find eMarketer’s full report here.

NEW COMPANY FROM TECH VETERAN ROBERTSON AIMS TO BE LIKE DVR FOR RADIO

Michael Robertson, tech entrepreneur and founder of MP3.com, has launched DAR.fm — a platform that aims to be like a DVR for radio. The service will record radio programming and even let users skip between different songs in a recording. VentureBeat has more coverage here and you can watch Robertson launch the service here.

Robertson will join us in Las Vegas on April 11 for RAIN Summit West 2011. You can find out more, and register, right here.

IS IT A TOASTER WITH RADIO, OR A RADIO THAT TOASTS BREAD?

If your everyday, run-of-the-mill digital radios just don’t have enough bang for your buck, take note. A new digital radio from Breville includes a toaster…or rather, a new toaster from Breville also tunes in to digital radio. It retails for around $79 and is available in the UK and Australia. Find out more here.

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