Online radio isn't the same as terrestrial radio, and attempts by online operators to compete with broadcast stations are doomed to failure, the Netfest conference in Melbourne has been told.
BigFatRadio and Spike Radio failed because they tried to copy commercial radio formats when they needed "a new stream for a new audience", Executive Director of Whoopi! and its Radio Undercover operation, Paul Cashmere said.
Cashmere explained that the differences between the two media include portability and active-versus-passive listening.
The portability of broadcast radio means people can listen to the same station on their bedside clock radio, in the shower, in the car and at work. "Radio stations are a friend to the consumer," Cashmere said.
But research shows that 88 percent of a music station's audience are passive listeners -- the program is just on in the background.
"Online media is about putting control into [the hands of] the consumer," he said.
If someone doesn't like a particular track, they will quickly change to a different stream. Online operators can provide as many streams as they wish (and it is easier to switch between streams from one operator than to go elsewhere) and while broadcasters are restricted to no more than two stations in a geographical market, they target narrow demographics (FOX, for example, is aimed at females aged 21-24.)
"As soon as there's a new demographic [to target]... we just create a new stream," Cashmere said.
"Online media can superserve the most niche audience."
Online music radio doesn't need presenters, Cashmere told ZDnet, so it's cheap to produce another stream. The details about the music being played can be displayed on-screen along with station branding, and local information such as traffic and weather isn't needed as the audience is international.
Paying announcers "big fat salaries" works against online radio operators, whereas broadcast music stations rely on star breakfast presenters to draw and retain listeners, he said.
Radio Undercover www.radioundercover.com currently produces 1000 hours of streaming media per week, including 20 Webcast interviews each month. The site claims 250,000 unique visitors and 150,000 unique streams per month.
Most of its income comes from syndication deals with partners such as Optus@Home, Yahoo Australia/New Zealand and Microsoft, or from production work for the local music industry.
They almost have it right, but pumping more and more niche stations down the pipe is not active listening - it is more passive listening to a more tightly defined audience.
I run a radio show that puts the on-air broadcasting in the hands of the on-line audience. The content is submitted by the audience, the on-air discussion is directed by the real-time chat room, and the content is supported by text, graphics and forums.
That is real 'active' listening - www.radioactive.net.au