Microsoft radio venture gives DJs pause
SEATTLE, Washington (AP) -- Fans of the Seattle music pop station Kiss 106.1 FM usually have to sit through an array of disc-jockey antics and advertising between listening to favorite artists like Avril Levigne and Ashlee Simpson.
But not anymore. As part of its much-touted new MSN Music offering, Microsoft Corp. is testing a Web-based radio service that mimics nearly 1,000 local radio stations, allowing users to hear a version of their favorite radio station with far fewer interruptions.
It's a move analysts say is annoying, but not seriously threatening, the stations.
"Because it's a beta and because it's Webcasting, it's not yet considered a tremendously important competitor to radio," said Brida Connolly, technology editor at the Los Angeles trade publication Radio & Records. "At this stage it's considered more of an irritation."
The service also poses no serious problems yet because most people still listen to commercial radio in their cars and Internet broadcasting is still in its infancy, analysts say. But they warn that the service could be a harbinger of more competitive online threats to come.
For $30 a year or $5 per month, Microsoft's service -- which is still in early testing -- will deliver the songs without commercial interruption. The free service includes ads but no DJs.
Microsoft builds its versions of the local stations by licensing playlists from the various local radio stations through Nielsen Broadcast Data System, an independent group that tracks commercial airplay.
The Redmond, Wash. software titan's feed differs slightly because the company must adher to different rules on what can be played on the Web and is barred from playing songs for which it has not independently secured rights.
Connolly said radio stations are less concerned with Microsoft's move to mimic popular playlists -- which can be licensed -- than with the fact that Microsoft refers to specific call letters and nicknames.
For example, the listing for the Seattle pop station says "Like 106.1 FM" followed by the description "KBKS KISS 106.1." Such nicknames are "taken very seriously" as part of a station's branding and competitive edge, she said.
Connolly stresses that no one is considering taking legal action regarding the use of those names, but she said radio stations have been unpleasantly caught off guard.
Rob Bennett, Microsoft's senior director of MSN entertainment, said Microsoft would be willing to remove the nicknames and call letters -- but not the playlists -- if radio stations request it.
But instead of being a threat to local radio, he sees Microsoft's Webcasts as an opportunity for radio stations to extend their brand and maybe even form a partnership with Microsoft's online music site.
Although Microsoft's service poses no major competitive threat for radio stations right now, analyst Phil Leigh with Inside Digital Media in Tampa, Florida, said the service should serve as a wake-up call for what's to come. After all, he notes the paid service could prove very attractive to consumers who are sick of DJ jokes and intrusive advertising -- especially if Web sites find ways to transmit wirelessly to cars.
"Radio stations are seriously challenged with tech obsolescence," he said.
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But not anymore. As part of its much-touted new MSN Music offering, Microsoft Corp. is testing a Web-based radio service that mimics nearly 1,000 local radio stations, allowing users to hear a version of their favorite radio station with far fewer interruptions.
It's a move analysts say is annoying, but not seriously threatening, the stations.
"Because it's a beta and because it's Webcasting, it's not yet considered a tremendously important competitor to radio," said Brida Connolly, technology editor at the Los Angeles trade publication Radio & Records. "At this stage it's considered more of an irritation."
The service also poses no serious problems yet because most people still listen to commercial radio in their cars and Internet broadcasting is still in its infancy, analysts say. But they warn that the service could be a harbinger of more competitive online threats to come.
For $30 a year or $5 per month, Microsoft's service -- which is still in early testing -- will deliver the songs without commercial interruption. The free service includes ads but no DJs.
Microsoft builds its versions of the local stations by licensing playlists from the various local radio stations through Nielsen Broadcast Data System, an independent group that tracks commercial airplay.
The Redmond, Wash. software titan's feed differs slightly because the company must adher to different rules on what can be played on the Web and is barred from playing songs for which it has not independently secured rights.
Connolly said radio stations are less concerned with Microsoft's move to mimic popular playlists -- which can be licensed -- than with the fact that Microsoft refers to specific call letters and nicknames.
For example, the listing for the Seattle pop station says "Like 106.1 FM" followed by the description "KBKS KISS 106.1." Such nicknames are "taken very seriously" as part of a station's branding and competitive edge, she said.
Connolly stresses that no one is considering taking legal action regarding the use of those names, but she said radio stations have been unpleasantly caught off guard.
Rob Bennett, Microsoft's senior director of MSN entertainment, said Microsoft would be willing to remove the nicknames and call letters -- but not the playlists -- if radio stations request it.
But instead of being a threat to local radio, he sees Microsoft's Webcasts as an opportunity for radio stations to extend their brand and maybe even form a partnership with Microsoft's online music site.
Although Microsoft's service poses no major competitive threat for radio stations right now, analyst Phil Leigh with Inside Digital Media in Tampa, Florida, said the service should serve as a wake-up call for what's to come. After all, he notes the paid service could prove very attractive to consumers who are sick of DJ jokes and intrusive advertising -- especially if Web sites find ways to transmit wirelessly to cars.
"Radio stations are seriously challenged with tech obsolescence," he said.
SOLOEnterprises is your one stop shop for computer consulting in Orange County, web site design and web site hosting.
Remember our motto "We Speak YOUR Language"
Computer Service Orange County
Web Design Orange County
Web Hosting Orange County
