JacoBlog - Jacobs Media's Blog

A Musical Response To musicFIRST

So, musicFIRST in their "humorous" effort to extract pay performance fees from broadcasters is sending the following songs from iTunes to the NAB:

1. Springsteen's "Pay Me My Money Down"
2. Steve Miller's "Take The Money And Run"
3. McCartney's "Back in the U.S.S.R." (huh?)
4. Sheryl Crow's "A Change Will Do You Good"

Maybe David Rehr can respond by sending musicFIRST his own foursome:

1. Godsmack's "Greed"
2. Aerosmith's "Dream On"
3. EMF's "Unbelievable"
4. Filter's "Hey Man, Nice Shot"

Maybe there's a special weekend here somewhere.  (Please post any suggestions you have below.)

Dear I-Man

An open letter to Don Imus, from Jacobs Media's Dave Beasing:

Dear Mr. Imus,

Welcome back to radio!  For your listeners, mornings just haven't been the same. 
Comedy isn't easy, nor was the way your career at WFAN ended.  It's difficult to consistently be funny without offending someone, and you didn't deserve to be depicted as a monster.  On the other hand, your new deal with WABC is probably a lucrative one, as someone with your increased name recognition deserves.  You're fine.

So who paid the price for your lapse in judgment?  Certainly, the young women on that basketball team head the list.  And so does radio.  While NAB President David Rehr and his team are busy reminding Congress about all the good things that local broadcasters do, you sent a different message directly to their constituents – that this industry has sometimes been racist, sexist, and downright stupid.

Radio needs big stars like you.  Most of us are sincerely happy about your return.  But do us a favor.  Please use your immense talent to everyone’s benefit.  In return, we’ll be listening, laughing and loving your show.  Deal?

Respectfully,

Dave Beasing

Who Owns "Rollvember?"

As this amazing baseball season ends, two unlikely teams did battle in the World Series - the come-out-of-nowhere Colorado Rockies and the comeback kids themselves, Boston Red Sox.  Redsox Nation was convinced, of course, that their team should have been in the Series by virtue of fate.  But the Rockies story was truly remarkable.

But did it all go to the Rockies' head?  They tried to cash in on all this serendipity by trying to "own" the copyright on "Rocktober" - which is what they named their amazing phenomenon.  This whole thing got out of control many years ago when Lakers coach Pat Riley copyrighted the term "Three-peat."  Now everyone wants a piece of the pie.

Well, excuse me, but a few dozen radio stations have been doing their version of "Rocktober" for a few years now.  And shouldn't the Rockies have focused a bit more on their to-do lists than to mess with this stupid copyright issue?

(And yes, we own still own "The Edge.")

Dumb And Dumbest

As if the music industry couldn't get even more absurd, the musicFIRST coalition has trotted out a ridiculous "study" from a University of Texas (at Dallas) professor, Stan Liebowitz.  Mark Ramsey, Larry Rosin, and the NAB have already pilloried this bizarre piece of supposed (non-primary) research that claims that radio airplay actually hurts record sales.  It is hard to believe they are actually trumpeting this study as a way to generate support for extracting higher royalty fees from radio.  Talk about biting the hand that has fed them all these years.

Liebowitz claims - among other things - that because consumers listen to radio for approximately three hours a day, and only listen to recorded music for 45 minutes a day, this is time that the recording industry will never get back.

Here's a clip from Liebowitz's conclusions that shows how lame this "study" really is:

Not only is this ridiculous, but it doesn't account for the ways in which consumers find out about and are exposed to music in the first place.  Nor does it address the myriad ways in which radio has been primarily responsible for building artist and performer brands, supporting concerts, conducting artist interviews, and being the biggest flag wavers in the media world for musicians.  If you looked at the amount of advertising dollars, for example, that the recording industry historically has invested into (*insert band name here*) versus the billions of gross impressions supplied by thousands of radio stations across the country, there's no contest.

Radio has been the de facto marketing machine for the recording industry - period, paragraph.  And every professional with half a brain in the label world knows and respects the power of radio exposure and support.

It is distressing to see this appalling lack of logic unfold because it speaks to the overall lack of strategy and sense that has eluded the recording industry for years now.  Whether it's chasing after 14 year-old illegal downloaders, or pleading with stations to stop playing additional album tracks, the recording industry has done just about everything except best serve its artists and performers.

And it suggests that radio formats that have been historically dependent on new music would do well to look well outside the bounds of major labels for material.  If this is the recording industry's idea of a cogent strategy and smart tactics, you really have to wonder how much longer these folks are going to be around.  The last group they should be messing with is radio broadcasters.

How I Won the Oscars Party Kitty

What's the best way to predict a hit?  In today's blog, Dave Beasing talks about a new website that takes a novel approach to the art/science of pop culture success...and failure.

I've been wrestling with whether to confess my secret since February.  Oh, why not?  To my knowledge, no one who attends the same annual Oscars viewing party I do reads the JacoBLOG anyway.  (No offense, Fred, but they're not in the business.)

I hadn't seen that many of the Academy Awards nominees this year.  And even if I had, who would have known that "Pan's Labyrinth" would win for Best Cinematography or that "West Bank Story" would be an odds-on favorite for Best Live Action Short Film?  Certainly not the partygoers who were poring over Entertainment Weekly.  But I did, thanks to InTrade.com.  I printed the odds from that online "trading" (they don't like the word "betting") site just before the awards ceremony.

The concept, simply put, is that Vegas is more predictive than Gallup.  After all, people tend to put their money on a sure thing.  Presently on InTrade, for example, Hillary Clinton is trading with a 32.7% chance of moving back into the White House.  President Giuliani, you say?  13.9% chance.

Now there's a new site based on the same principle -- but using play money, since it's only a game.  Check out MediaPredict.com, an online competition for the rest of us, the people who would get killed at fantasy baseball.  Recently, I'm wagered that the White Stripes' new CD would debut in the Billboard Top 5, and right now I'm betting that Hawthorne Heights will get a new record deal.  (Can I help it that I know their management?)

You can also evaluate and wager on new bands, book proposals, sitcom and movie pitches, you name it.  Want to post airchecks for potential new air talent to learn their odds of success?  MediaPredict.com is looking for new ideas, so you might propose that.  Judging by some of the new morning shows we've launched in our industry, we media "gatekeepers" could use some advice.

As the founders of MediaPredict.com explain, the site is another way that consumers can, "Call the shots.  Make media better."  So if you want to win some cash at the next Oscars party - or pick a hit record or a new TV spot - ask for a little help.  Collective intelligence is almost always right.  And it sure is fun for your listeners to feel like they had a say in the matter.

Where's The Outrage?

The controversy rolls on about Internet radio royalty fees, accentuated by NPR's strong statement of protest.

Today, they will issue a formal petition with the CRB panel that instituted the new exorbitant rate structure.  This is the first step in the appeal process.

As NPR spokesperson, Andi Sporkin noted, "This decision penalizes public radio stations for fulfilling their mandate, it penalizes emerging and non-mainstream musical artists who have always relied on public radio for visibility, and ultimately it penalizes the American public, whose local station memberships and taxes will be necessary to cover the millions of dollars that will now be required as payment.  On behalf of the public radio system, NPR will pursue all possible action to reverse this decision, which threatens to severely reduce local stations' public service and limit the reach of the entire music community."

Where is commercial radio amidst this difficult situation?  While public radio and NPR have a great deal to lose because of these rate hikes, so do commercial broadcasters, many of whom have begun to build up substantial streaming audiences.  Everyone in radio needs to step up and be heard.

The Threat To Internet Radio

In this third month of 2007, you have to wonder how many more hurdles radio operators will continue to face.  The recent announcement that royalty rates are skyrocketing, thanks to the short-sightedness and greed of the Copyright Royalty Board not only threatens radio's revenue opportunity, but its future on the Internet, cell phones, and other new technologies (such as WiMax in vehicles).

Jacobs Media Tech Polls have continued to underscore Internet radio's growth and popularity among radio audiences.  The newest study - just wrapped up earlier this month - continues to affirm the strides that radio has made online.  Now the CRB's move puts all of this in jeopardy, at a time when many radio operators are struggling just to stay even.

Kurt Hanson has initiated a web campaign - www.savethestreams.org.  Yes, Kurt has a dog in this hunt.  His AccuRadio stands to be wiped out because of these cost increases.  But every radio broadcaster shares Kurt's plight, making his call to action very compelling.

It is noteworthy that most broadcasters have struggled to develop content to run inside commercial stopsets during streams.  Well, now you have a message to send to members of Congress.  Use this valuable time to send a message to your online audience.  There's an example of language from SaveTheStreams.org that would be easily convertible to promo form:

As your constituent and a fan of Internet radio, I was alarmed to learn that music royalty rates were recently determined by the Copyright Royalty Board (CRB) which, if enacted, would certainly silence most or all of my favorite online listening services. For most webcasters, this royalty rate represents more than 100% of their total revenues!

The shuttering of the webcasting industry would be a loss for not only independent business owners, but also for musical artists, for copyright owners, and for listeners like me who enjoy the wide variety of choices available via Internet radio.

I respectfully request that your office look into this matter and initiate action to prevent it. As the CRB rate decision is retroactive to January 1, 2006, please understand that time is of the essence - as the immediate impact of this decision could silence many Internet radio stations forever.

There are also has some rational suggestions for arrousing your audience - and your company - from another site focused on the issue, www.saveourinternetradio.com:

Mad as hell about the threat to Internet Radio? Do Something!

1. Sign this online petition and open letter to the US Congress.

2. Send an email to your members of Congress. You can use our suggested text, or write your own.

3. Print out the email (you’ll get a copy) and mail it to your Congresspeople. Follow up with a phone call. You can look up their addresses and phone numbers here.

4. Write a letter to the editor of your favorite magazines and newspapers. If you know someone in the media, let them know what’s going on. Have them read my post below, if you like.

5. Don’t panic. Together we can save the medium that we all love. We have the passion to make it happen!

We realize that the challenges radio broadcasters are facing are immense - and seemingly, neverending.  But Internet radio is one of the new media avenues that terrestrial radio stations have been able to easily and successfully access.  It is indeed the pathway to reaching listeners in the future, but only if it is financially possible to do so.  It's time to send a message.

Raise Your Right Hand

Thought you'd find it interesting to hear NAB CEO's David Rehr's testimony about satellite radio, in addition to a feature on the same topic that ran last week on NPR's "Morning Edition."  You'll hear David again, as well as Mel Karmazin's testimony.  This is clearly the biggest issue facing radio so far this year.  Enjoy the exchange.

We are watching the "returns" rolling in from Tech Poll III, and the "satellite story" is a fascinating one, especially when tracked against the '05 and '06 studies.  At over 24,000 completed surveys, we're seeing an amazing picture of how radio listeners' tech and entertainment habits are changing.  Our data clearly depicts why both XM and Sirius feel that their only means of survival is to merge.  It will be fascinating to see how all of this goes over in Washington.

Top 10 Reasons...

Today we've got a guest posting from Jacobs Media's Paul Jacobs:

Top 10 reasons why an XM-Sirius merger sounds like a bad idea:

1.  $19.99/month

2.  Since when did the government reward failure?

3.  Does this mean that the FCC will completely de-regulate radio now?

4.  Howard gets wealthier because the stock goes up

5.  $25.99/month

6.  Voice-tracked music channels

7.  18 units/hour on the music channels

8.  How come my (Sirius/XM) receiver can't pick up my (Sirius/XM) signal?

9.  If the FCC will approve this merger, they'll probably approve local traffic and weather (wait, they already have?????)

10.  $29.99/month

WWSS*

* What Would Spitzer Say

So, I'm on my way through The New York Times Magazine heading toward the crossword puzzle when the "Ethics" column captures my eye.  Every week, "ethicist" Randy Cohen attempts to answer the questions of readers who are struggling to do the right thing.  Last week, the lead query was radio-related:

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RECORD KEEPING

In the 1980s, I worked at a radio station. Like many DJs, I appropriated a number of LPs, which I justified partly because they were old, partly because management treated us shabbily. My spite has long dissipated, and each time I move, I schlep scratchy records I don't even play. I could mail them back anonymously, although it's unlikely, in this CD age, that the station would want them. I could donate them to charity. Thoughts? -- Mark McDermott, Chicago

It is admirable to want to walk in the sun once again, but that requires more than returning the bruised fruit of your crime spree, a step you seem inclined to take as much to solve your moving and storage problems as to silence a nagging conscience. Beyond simply doing right today, you ought to make amends for doing wrong yesterday, and that means compensating the station for the stolen records. Simply returning a lot of old and, as you say, probably useless albums is akin to a car thief's returning the Ford Pinto he swiped in 1975 and has driven ever since. (Assuming, you know, that it never combusted.)

Contact the station and ask if anyone there wants the LPs; it is quite unlikely that the cops will be sicced on someone trying to make up for a rash of petty thievery 20 years ago. Once you've reached the station by phone, you can discuss what would be regarded as appropriate recompense.

Donating your (old, worn-out) swag (or, incidentally, a lobbyist's bribe) to charity isn't much of a solution. If you had stolen my TV set, I wouldn't feel so great about your giving it to the Old DJ's Home -- not that it isn't a fine, albeit imaginary, organization.

UPDATE: McDermott e-mailed his former manager, still on the job, who replied: "I think you have watched too many episodes of 'My Name Is Earl.'"

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Of course, the right answer is that the former disgruntled DJ (imagine - being shabbily treated by management) ought to contact the record labels that supplied the vinyl in question "for promotional use only."  In the current climate, we all better hope that no one shows up with a warrant to search our basements.  You never know.