Flattery alone will only get you so far – SoundCloud users can now get paid via Flattr

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.

Flattr image

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 image

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

Music Discovery Platform exfm Goes Mobile With A Killer App For iOS

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.

Extension Entertainment image

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

Radio Stations Go Back to the Future

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.

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.

NYCULTURE

NYCULTURE

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."

Vincent Soyez

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

NYCULTURE

NYCULTURE

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."

Radio and Records: Can’t We All Just Get Along?

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

Mike Agovino image

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

Information provided by CrunchBase