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Jelli Crowdsources Radio Programming

Broadcast radio sucks. It's programmed by computers controlled by old white men looking over their shoulders for advice from a handful of consultants and focus groups. What if we, the people, controlled what was played?  It would have to better than it is now, right?

Jelli.net aims to find out. Jelli is user-controlled radio. The service lets fans take over a radio station using their web browsers and empowers the community to interact with the broadcast in real-time and determine dynamically what plays on air. Jeli has been testing online and will go live later this month with a weekly 2 hour Sunday slot on San Francisco's Live 105.

Here's how it works:

Are Artists The New Gatekeepers? Clear Channel Radio & Front Line Mgt. Think So.

Both broadcast and online radio are searching for new ways to engage listeners in the iPod age and radio giant Clear Channel is betting that name artists may be the answer.

In a partnership with Irving Azoff's Front Line Management, Clear Channel is is launching artist personal experience a.p.e. radio ( artist personal experience), a stand-alone company that will produce artist driven own online channels, according to Billboard. The new broadcasts will launch in July with The Eagles, Weezer & Christina Aguilera. Each 24 hour channels will play music chosen by the artist along with interviews and commentary.

Sirius XM has found success with both short and long term artist channels that range from a Sinatra driven station featuring duaghter Nancy as a host to a shorter term Dave Mathews channel celebrating the release of a new record and tour.  Other artists have also launched their own online broadcasts...

Is Radio Punishing Artists That Support Performance Royalties?

musicFIRST has filed a formal request with the Federal Communications Commission, asking that they investigate reports of radio stations refusing to air musicFIRST ads and withholding airplay from artists who support the payment of broadcast radio performance royalties. No specific artists were named in the filing, but several sources suggest that U2 is one of those effected.

The bill supporting broadcast performance royalties is facing tough opposition on Congress and the National Association Of Broadcasters is calling musicFIRST's request to the FCC "an act of desperation".

Surprise! Study Shows Few Indies On Radio

Artist advocacy group The Future Of Music Coalition has released a new report "Same Old  Song" confirming that indie music is not getting its fair share of airplay on broadcast radio.

In April 2007, the FCC found widespread payola and ordered the four largest U.S. radio groups (Clear Channel, CBS, Citadel and Entercom) to pay $12.5 million in fines and work with the American Association of Independent Music (A2IM) to draft 8 “Rules of Engagement” and an “indie set-aside” including 4,200 hours of unsigned and indie label music.

But FMC's new survey of Mediaguide airplay data shows little has changed in the 2 years since the FCC decree. Indie music did make slight gains at AAA Non-comm. and Country radio. But at all 5 other dominant radio formats (AC, Urban AC, Active Rock, CHR Pop, and Triple A Comm.) the share of indie music played remained stagnant at 78-82% despite ndies comprising 30-40% of the marketplace.

Not surprisingly, the FMC also found that there were very few slots for any new music .There too, new major label songs typically receive more spins than indies. Finally, FMC looked at the indie labels...

Smashing Pumpkins Offer $40 Subscriptions

A Free Corgan Brings Fans "Behind The Wizard's Curtain" And Asks Them For Input.

"For many years I've been really unhappy with the stupidity of the music business," admits Smashing Pumpkin leader Billy Corgan. "But now I am free from corporate meddling. No contracts, no deadlines to meet."  But he's far from idle. Corgan is quote busy writing, rehearsing a new band, recording, exploring side projects and starting up his own subscription service.

Exactly how Corgan's subscription model will work is still be debatedut, but including new material is not out of the question and he's asking his fans to help him decide,. "I guess we as a community could throw out how many people would be interested in that as an idea. It would definitely have to be something that would be worth the effort on all sides."

Details of  the Corgan's subscription so far:

New FCC Chair Has Strong Venture & Digital Ties

UPDATE:  The appointment is now official. Reaction to the appointment from the indie label community via A2IM President Rich Bengloff after the jump below/

Julius Genachowski has been named the new Chairman of The Federal Communications Commission. As with most things Obama, this is not you're father's FCC chair. From his bio:

• Cofounder and managing director of venture capital firm Rock Creek.
• Founding partner of LaunchBox Digital
• Chairman and cofounder of Thummit
• From 1997-2005, senior exec for 8 years at Barry Diller's IAC/InterActiveCorp/
• He has served on the Boards of Directors or Advisors of several companies, including Web.com, Ticketmaster, The Motley Fool, Beliefnet (sold to NewsCorp), Truveo (sold to AOL), and Rapt (sold to Microsoft).

An Obama/Genachowski administration can be expected to more aggressively license and promote wireless internet and other technologies that will enable the next generation of information and entertainment delivery.

Top 10 Reasons Radio Stations Are Bleeding Money

Another great guest post from our resident music industry philosopher Kyle Bylin. The title speaks for itself.

In The Social Music Evolution I wrote about the commercialization of radio due to Clear Channel's growth from owning forty five stations in 1995 to a staggering fifteen hundred by 2003.  Noting this as a contributing factor that has increased the complexity of the music industry.   The idea of commercialization was great at the time, because after all, what's better than owning five stations locally?  Of course, owning hundreds nationally.

Commercialized radio may not die out entirely, but it will bleed money in the meantime.  The local radio stations stand a better chance because they have the advantage connecting with their audience and being more able to adapt to the needs of their market. Here are the top 10 reasons why radio stations are bleeding money:

1. Loss of community - They're not losing their listeners, they're losing their communities.  Remember when you got on the air and talked with the host?  Then, later that night, your friends called you because they heard you on air.  Dying.  You retell the stories from the morning show with your coworkers later that day.  Dying.  We've all lost our sense of community and are finding somewhere else to belong everyday.

2. Generalization to specialization - We've developed very diverse and complex listening habits.  The problem is that radio plays music based on genre and the different the eras of its success.  If I'm listening to current alternative and want to hear some classic rock, they lose every time.  Switching back and forth between stations isn't good for driving, but for those who are still listening, they're doing it more and more.

3. Localization to nationalization - Loud and local was the mantra of the station...

Nic Harcourt Steps Down At KCRW

After 10 years as the host of Morning Becomes Eclectic, KCRW LA's influential music director Nic Harcourt is stepping down on November 30th to pursue several independent projects. Harcourt will continue hosting a 3-hour show on Sundays from 6-9 pm.

“As a parent of two young children, I believe it’s time for me to explore new career opportunities and expand upon my other activities in movie, television, voice over work, advertising and the Internet,” Harcorft said in a statement. “Nic is a hard act to follow”, said General Manger Ruth Seymour. “We are now in the process of choosing a new Music Director. We have been looking at potential candidates with an eye toward announcing a choice in the new few weeks.”

Can Broadcast Radio Matter Again?

How Barak Obama Helped Make Radio Matter

During a recent trip to Charleston, SC  my wife Katy and I spent time listening to WMGL FM - Today's R&B and Classic Soul. Our tastes trend towards Leonard Cohen and Ray Lamontagne, but we found ourselves riveted to WMGL because the DJ's mixed passion for things that mattered to their audience with the music.

This is not talk radio, but interest in the election and pride in the possibility of electing the first Afro-American president was evident throughout both local and syndicated shows. One DJ spent 15 minutes on a misleading ad by NC Senator Dole that called her Sunday school teacher opponent "Godless" because an atheist had sponsored a fundraiser. "I did not always agree with Libby Dole, but thought she was a fair and classy lady. No more", he declared. A steady stream of guests provided color and context to concerts, local events, record releases and the elections.

Broadcast radio stopped offering a reason to tune in. WGMT and some other Afro-American broadcasters are following a path ironically paved by conservative talk radio back to broadcasting that is not afraid to express a point of view and talk about issues facing listeners. For radio to matter again, it must:

• Talk about subjects that matter. (the elections. jobs, health care)
• Provide information that matters. (where to find cheapest gas, polling locations, government programs)
• Play music that matters. (Kayne West connects. No one will care about Rihanna in five years.)

The audience must matter to radio, before radio can matter to the audience.          - Bruce Houghton

A2IM Study: Payola Still Keeps Indies Music Off Air

18 months after the end of the most extensive payola investigation in a decade and the signing of FCC sponsored Rules of Engagement, a new survey by indie label trade group A2IM shows that independent artists and labels are still being shut out of broadcast radio. According to 61 indie labels who responded to the survey:

• Over 92% of independent labels report no change in their relationship with commercial radio since the settlement
• 41% reported that payola remains a determining factor in commercial radio airplay
• 47% said indie promotion companies are still a factor
• Asked if that had asked for payola since the FCC settlement, only 39 labels answered and 1 in 4 of those said that they had

Radio Performance Rights Act Passes Committee

The U.S. House of Representatives Subcommittee on the Courts, the Internet and Intellectual Property today approved the Performance Rights Act (H.R. 4789).  While considering the bill, several members commented on further additions that may be considered including a “platform parity” amendment that would extend the legislation to digital broadcasting.

If enacted the Performance Rights Act amends federal copyright law to:

Ludwig Adds 50 Channels To FM Stations

A new technology that attaches 50 digital channels to an existing FM radio signal could bring an unprecedented level of diversity to the broadcast dial. Ludwig Enterprises says the technology will allow it to acquire the rights to currently issued FM spectrum with minimal regulatory requirements and hit the airwaves in the top 50 markets.

Ludwig's plan is for a...

FMC Calls For Payola & Localism Scrutiny

The payola settlements of 2007 offered a starting point for radio to make changes that showed a commitment to localism and diversity on the public airwaves. But the reality is that  few broadcasters are placing local and independent music in regular rotation.

In response the Future of Music Coalition has created a Payola Education Guide and filed a brief with the FCC asking for a re-examination of the issue. The lack of transparency in the song selection process at commercial radio stations leaves the door open for payola...

As Labels Demand Higher Royalties, Radio Could Charge For Airplay

A NEW BRAND OF LEGAL PAYOLA

A battle is raging in Washington over requests by labels and artists to charge radio broadcasters more for playing music. Currently only the songwriter gets paid for the airplay via ASCAP, BMI and SESAC. Nothing goes to the performer.

Sounds unfair. But change often has unforseen consequences. Is now when radio is faltering, the right time to ask for money or will it push more music off the air? And does charging more break the implicit promotional contract between artists, their record companies and broadcast radio?

Music Attorney David Oxenford  believes that new efforts to charge radio more for playing music breaks the promotional “bargain” between labels and broadcasters would be voided with the proposed legislation and put broadcasters "in the position where they could charge the labels or the artists money for playing those songs and getting promotional value.”.

Nokia Adds Net Radio

Watch out broadcasters...

How Much Would Radio Pay In Perfomance Royalties?

National Association Of Broadcasters say
10-35% of revenue
        vs.
musicFIRST says
3% of revenue

Who is telling the truth? 

WFUV Uses Payola Funds To Launch Second NYC Station

Non-commercial Triple A WFUV-FM in NYC is using $500,000 in funds from the NY State Music Fund set up after last year's payola probe to launch a second station via HD, internet and mobile streaming. This second station to launch in 2008 will be aimed at the 20-30 year old alt-rock set. Total costs are estimated at $1.2 million.

"Acts like Antibalas, Forro In The Dark and The Hold Steady have no problem selling out venues all over town, yet they presently don't have a home on the radio in New York City,” said PD Chuck Singleton. “A second stream enables us to play deserving local acts in the same set as Bjork, M.I.A. or Arcade Fire, and at the same time, better serve New York's musically-adventurous listening audiences by introducing them to something different."

Like LA's KCRW, Philadelphia's WXPN and others, WFUV is proving that some of the most innovative programming and creative use of new delivery methods is coming from the non-commercial broadcast sector.

Stop Complaining About Radio And Do Something. FCC Opens Rare Window For Full Powered Licenses.

OK, all you music industry types who read this blog, stop complaining about the state of broadcast radio and do something about it. The FCC is opening a rare window of opportunity from Oct 12-19 to apply for new full power (100 to 100,000 watts) non-profit community stations.

The window itself will only last seven days and you can only file your application only during this seven-day window, so everything needs to be prepared in advance. If you don't apply during this window, it could be many years before another licensing window opens and there won't be much full power radio spectrum of value available after this issuing period.

These licenses will only be available to qualified community groups and nonprofits in certain geographical areas.  You can easily find out if there is frequency available near you and how to apply at GetRadio.org.

Video Of President Bush Proving His Understanding Of Performance Royalties

Part II - Music Festivals Thrive On Diversity. Why Can't Radio? An Interview With Radio Paradise's Bill Goldsmith.

Part II - Yesterday we asked why commercial radio doesn't follow the lead of today's top music festivals and program a more eclectic mix.  One of the few broadcasters who intelligently programs across the musical spectrum is Radio Paradise's Bill Goldsmith.  Here's a recent set of tunes on RP:

•     Elbow - My Very Best
•     Eddie From Ohio - Number Six Driver
•     Cheikh Lo Lo - Guiss Guiss
•     Van Morrison - Precious time

We asked Bill for his comments on the current homogenized state of radio:

"In the world of broadcast radio - even in the non-commercial realm - there's a tremendous pressure for quick success and short-term profit. That naturally leads broadcasters to favor packaged solutions or easy-to-emulate formulas, such as a short list of the least offensive soft-rock hits, or non-stop NPR news and commentary. A formula like what we use at Radio Paradise (playing an interesting cross-section of many different music genres, carefully blended so that it flows gracefully) doesn't lend itself to easy packaging and implementation."

"As for Internet stations, the easy route there is to throw up dozens, or hundreds, of channels devoted to a particular narrow genre of music. There's not a whole lot of time, effort, and creativity required to put a "pre-1980 classic rock" or "ambient electronica"...(continued)

Music Festivals Thrive On Diversity. So Why Can't Radio?

Today: Why?  Tomorrow: An interview With Radio Paradise's Bill Goldsmith

Part 1 of II: Look at the line-up of acts at the most successful festivals in the country like Coachella,  Bonnaroo, and The New Orleans Jazz & Heritage Festival and you'll find tremendous diversity.  Old and new, urban and rock, world and folk music all blend together to provide a rich experience that music fans are supporting with their wallets.

But most commercial over the air broadcasters are stuck in one musical rut or another.  Sadly, the practice seems to even extend to internet radio.

There are many reasons that music on the radio has become both more segmented and  within each genre more homogenized.  The race for ratings is paramount. Chasing a particular audience for advertisers can mean producing programming that targets them exclusively whether they are young white males or Hispanic women.

Our President On Performance Royalties

From the official White House transcript:

QUESTION: Mr. President, music is one of our largest exports the country has. Currently, every country in the world -- except China, Iran, North Korea, Rwanda and the United States -- pay a statutory royalty to the performing artists for radio and television air play. Would your administration consider changing our laws to align it with the rest of the world?

THE PRESIDENT: Help. (Laughter.) Maybe you've never had a President say this -- I have, like, no earthly idea what you're talking about. (Laughter and applause.) Sounds like we're keeping interesting company, you know? (Laughter.)

Look, I'll give you the old classic: contact my office, will you? (Laughter.) I really don't -- I'm totally out of my lane. I like listening to country music, if that helps. (Laughter.)

In A Victory For Indies Clear Channel Agrees To Pay Royalties For Use

After much criticism, Clear Channel is dropping it's demand that indie and new artists waive their rights to royalties in exchange for possible airplay on its chain of radio stations and exposure on its web sites.  The new artist program had only been put into place as part of a settlement with the FCC over payola allegations.

The new contract wording reads:

"...in the instance when Clear Channel makes the decision to use the Content for terrestrial broadcasting and, as a result, for simultaneous transmission through online streaming ("online streaming"), Clear Channel shall be subject to and pay for all applicable current and future statutory royalties as well as public performance royalties due for any such use of Content."

The contract goes on extend the same royalty payments to streaming, downloads and other uses.

Clear Channel Story Comments

Don't miss yesterday's exclusive Hypebot story on how Clear Channel Radio's program to satisfy a promise to the FCC to support indie music actually forces artists to waive all of their rights to royalties. 

There are also some great comments below the story.  Be sure to add yours.

Clear Channel Forcing Artists To Waive Rights & Royalties To Participate In FCC Mandated Indie Music Program

Part of the recent settlement between the FCC and  major radio groups ending a probe into payola charges was a promise of greater access to the airwaves for independent music.   

The nations largest broadcast group Clear Channel decided to keep that promise with an ongoing "NEW! Discover Artists" campaign that would offer selected artists a broad range of exposure on some Clear Channel stations and online.  But the exposure - which is still not well defined - comes at a price.

To even be considered for the program artists and songwriters must agree to a  wordy and confusing  8 page contract that effectively grants Clear Channel the right to do almost whatever is pleases with the song without out paying any royalties. The contract reads in part:

"You grant to Clear Channel the royalty-free non-exclusive right and license, in perpetuity (unless terminated earlier by You or Clear Channel as set forth below), to use, copy, modify, adapt, translate, publicly perform, digitally perform, publicly display and distribute any sound recordings, compositions, pictures...submitted by You to us on this website (the “Site”)...and to prepare derivative works of, or incorporate into other works, the Content, in connection with the preparation transmission, operation, production and advertising..."

"...Further, you acknowledge that all downloads...will be in an unprotected format and Clear Channel is not responsible and disclaims all liability for further copying of this file..." (Read the full contract here.)

COMMENTARY: Waiving royalties on a limited basis for a specific purpose is a reality of Music 2.0.  If you've got to give a little away to get people interested; no big deal.  But waiving all rights without a specific benefit is another story. 

Is ripping off indie musicians and labels really what the FCC had in mind?  At least when somebody slipped the PD some cash they knew what they'd get in return:  not just the vague possibility of 2 AM airplay and a photo buried a web site.

Who Benefits As New Royalty Demands Rise?

Even as music sales are dropping, mechanical and performance royalties are at all time highs thanks payments from emerging media. The push for even higher payments reached new levels this week.  But how these increased demands could effect innovation, consumer behavior and eventually overall revenue remain unanswered.

In an interview in RoyaltyWeek (via RAIN) by Brian Zisk of the Future of Music Coalition with John Simson, Executive Director of SoundExchange, Simson outlined the collection agency's position on the Copyright Royalty Board's recent controversial decision to raise rates for internet broadcasters:

" I’m tired of the claims that have been made over and over, a sort of arrogance on the webcasters side that we’re doing you a favor playing your music...you’re playing it because you either love it or because you think it helps you gain an audience and it serves your purpose... there have been studies that show over the air radio may not be promotional at all; it may be more substitutional...I think we should recognize that we can both benefit as long as we respect each other and say, you know, 'Yeah, they need to be paid fairly when we use their stuff.'

The Copyright Board agreed late this week to review arguments, but how can higher rates be fair for internet broadcasters who already pay significantly higher total royalties than traditional broadcasters? And who gains if higher rates put many webcasters out of business as many believe they will?

Its not just internet broadcasters who are under fire. Late Thursday The National Music Publisher's Assocition announced that it was joining a consortium of publishers suing XM over portable players with copying capability.  Just a few weeks ago ASCAP took the position in court that buying a download triggers not only mechanical royalties, but also payments for a performance.

While creators deserve to be paid, when do their demands become excessive?  No one benefits if the music discovery enabled by a multitude of niche broadcasts ends or new platforms like Pandora shut down.

In the end rights holders may drive music discovery further underground leading to smaller payments overall.   

Nettwerk's Terry McBride Live From SXSW Today On KCRW

LA's eclectic KCRW-FM is devoting a lot of airtime to SXSW both on its broadcast and internet only streams. Morning Becomes Eclectic host Nic Harcourt is there all week and today he's joined by Nettwerk Records and Management's Terry McBride.  More than most managers McBride actually walks his talk by self-releasing some of his acts like Barenaked Ladies, fighting the RIAA and pushing for an end to DRM. We hear he'll be a guest DJ, but he's sure to have a few choice comments on the industry.  The show starts at Noon EST/9PST with McBride joining about an hour in.

Is Recording Industry Killing The Goose That Streamed The Golden Egg?

Once Upon A Time, there was a recording industry organization that had a goose that streamed a golden egg every day. Things were going pretty well for their members. Each day their organization would take the golden egg to the Copyright Royalty Board and get a very handsome, multi-faceted, return on investment.

One day though, the recording industry thought, why wait for the goose to stream just one golden egg each day, 'let's take all the golden eggs to the Copyright Royalty Board at once.' So, they cut open the goose looking for all the golden eggs, and of course, there were none. They were left with no golden eggs and, worst of all, no goose to stream them.

- Mark Allen, The Washington State Assoc. Of Broadcasters via R.A.I.N.

Will The FCC Payola Settlement Matter?

COMMENTARY:

The recent FCC payola probe and $12.5 million settlement with Clear Channel (1100 radio stations), CBS Radio (180 stations),  Entercom (103 stations) and Citadel Broadcasting (213 stations) represented according to he commission "by far the largest collective fine ever paid".

Indie label trade group A2IM also announced a side agreement with the station groups that included 8400 half hour blocks of airtime devoted to independent music and a new Radio Rules Of Engagement designed to give indie labels more equal access to the airwaves.  "We have emerged from a truly remarkable negotiation where both sides have been motivated to do the right things for the right reasons to benefit the listener," A2IM Board member Peter Gordon and head of indie label Thirsty Ear told FMQB. "This radio group is embracing a creative solution to a difficult problem to the benefit of all and they should be commended.”

But the $12.5 million "largest collective fine ever" was also paid by a consolidated largest collective group of stations ever.  Broken down by station it amounts to a mere $7832.00 per or little more than the revenue from a few prime time major market radio ads. Hardly a harsh punishment.

8400 isolated half hours of independent music although laudable seems unlikely to level the playing field when measured alongside the more than 215,000 half hour blocks that these same 1596 stations program every month.  And does indie music really benefit when it is deliberately segregated from major label product?

But what about the new Radio Rules Of Engagement? 5-10 years ago pledges like "Radio should establish...clear and non-discriminatory procedures for music submissions and access to radio station music programmers" might have had an impact. But in a era of shrinking formats with tightened play lists chosen by overworked and inaccessible national programmers driven by research and demands of quarterly profits do non-binding promises really matter?

The real winners in this latest round of payola probes and settlements may in fact be the major labels who have been able to end the use of expensive independent promotion "consultants" and costly  marketing "gifts", contests and concert appearances substituting a few national promotion execs talking to a few national program directors. 

If more independent music finds its way onto the sales charts it will be because labels and music marketers embraced new media and technologies and not because of this week's FCC settlement and A2IM capitulation.

A2IM Announces Radio Rules Of Engagement

Indie label trade group A2IM has unveiled the new Radio Rules Of Engagement that it has negotiated with four major radio owner groups as an unofficial part of the pending $12 million settlement with the FCC.

RADIO RULES OF ENGAGEMENT

1. Radio should establish, and appropriately publicize, clear and non-discriminatory procedures for music submissions and access to radio station music programmers (to the extent any such access is provided).
2. Radio should not be allowed to sell or barter access to its music programmers.
3. Radio should not form relationships with any music companies, independent promotion companies, or other parties which provide for exclusive access to radio station music programmers, nor should Radio restrict access to its music programmers to those who contribute promotional consideration.
4. Radio should not exclude independent promotion companies, as a class, from gaining access to music programmers except for independent promotion companies which are compensated based upon playlist additions or increased spins.
5. Radio shall not ask for or expect, either directly or indirectly, any quid pro quo to play music, including but not limited to: (a) Any promotional considerations including cash and prizes (b) Local concert appearances (c) Exclusive relationships with recording artists.
6. Radio (individual stations or their parent companies) shall not act in a coercive manner, make or imply threats to withhold or reduce airplay or make or imply promises to commence or increase airplay, in connection with the solicitation of any promotional consideration, or any promotional consideration promised or given to competitor stations, including concert appearances and artist “exclusives.”
7. Disclosure:  All cash and non-cash consideration (above a reasonable threshold) made by labels, artists, or their agents shall be confirmed in writing and shall be subject to internal tracking controls, with the information gathered as a result of these controls available to the FCC upon its request.
8. Contest prize recipients to the extent permitted by applicable law must be identified publicly, and confirmed as not employees of the radio station or members of their immediate families or households.

While these rules do not have the force of law, the four major broadcast groups will have gone on record agreeing to abide by them. On the other side of the table this effort received active support and endorsement from A2IM, The Future of Music Coalition, AFTRA, American Federation of Independent Music, Recording Artists Coalition, The Music Managers’ Forum and NARAS.