Net Losses

Web radio's future is unlimited, but its present isn't pretty.

Likewise, Web radio in general won't be going away, but its form could change depending upon new technology. Sirius Satellite Radio and XM Satellite Radio were recently licensed by the FCC to provide satellite radio receivable in motor vehicles; the competitors already have agreements in place with major auto manufacturers such as Ford and GM, and car-stereo makers like Alpine and Panasonic are busily perfecting the gear. Most of the programming would be commercial-free, with users paying a $10 monthly fee à la cable television to receive up to 100 stations. And while early content providers are mostly established cable veterans like CNN and BET, the scheme might also open up a steady revenue stream for those Web radio practitioners still in existence when satellite-radio delivery becomes more commonplace.

In the short term, though, times may be tough. Because of the proliferation of Web radio -- during his stretch at Westwind, Stock also programmed channels at (seriously) Mountaindew.com and Doritos.com -- advertising returns are being spread too thin to help anyone. Moreover, higher expenses loom on the horizon. This past December, the U.S. Copyright Office declared that standard broadcast stations simulcasting on the Internet will have to pay royalties for their Web components in accordance with the Digital Millennium Copyright Act of 1998. This ruling, which is being fought by the National Association of Broadcasters, would be good for performers but has sent a shiver through those in the Web radio community. Their paranoia is exemplified by the title of an article about the situation in the January 11 edition of the industry publication Radio Ink: "The Death of Streaming."

Scott Stafford hopes Alpha Radio stays alive.
Jonathan Castner
Scott Stafford hopes Alpha Radio stays alive.

Stock isn't nearly so gloomy; he still expects great things from Web radio. But until its potential is realized, he's happy to be back at the Peak. Last July, when he was working part-time for the station, he got Peak staffers kicked out of Red Rocks during a Tattoo the Earth festival the outlet co-sponsored after daring fans to hurl things at him on stage -- something they were more than happy to do. But since the Peak switched from a hard-alternative sound to an "'80s and Beyond" tack closer to its original approach, he's been a good boy. "I love being here the way I used to do," he says. "This is a great environment for me."

What -- no proclamations about burying traditional radio? Stock laughs before admitting, "This has been a real lesson in not burning your bridges."

The next big bang: In this space last week, I wrote that mayoral spokesman Andrew Hudson could have claimed that a million people attended the city's New Year's Eve fireworks extravaganza and the eager-to-please media would have believed it. His response? The next day, he sent Westword a bogus press release declaring that revised crowd estimates put the actual attendance at four million people -- a total that included "every citizen in the State of Colorado as well as Nebraska, Kansas and Wyoming." He concluded with a quote of his own: "Maybe next year, we can convince Westword to help sponsor the event and even generate more positive publicity!"

In truth, Hudson reveals, city types sent out sponsorship proposals to pretty much every major media outlet prior to the festivities and received a flood of disinterest in response; the Denver Post and Clear Channel stepped up, but no television stations participated, and channels 2 and 7 didn't even bother to broadcast the display. Afterward, Hudson asked Channel 9 honcho Roger Ogden why his station had demurred, and Ogden replied that the public's response to the previous Denver-sponsored New Year's celebration, the non-alcoholic, family-oriented bash dubbed First Night, had been so underwhelming that he had been unwilling to take the risk. But the success of the most recent gala changed Ogden's mind; he's already had one of his assistants contact the city to explore sponsorship possibilities for the next New Year's Eve party, and Hudson says he won't be surprised to hear soon from other heavy TV hitters -- even channels 2 and 7. With their help, he says, "maybe we'll get five million people."

Sure -- if the city shuttles people in from Times Square...

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