Angel Street Capital

Saga's elimination of ad-insertion will help costs and quality, say observers, but more needed to compete online

Friday, August 24, 2012 - 12:35pm

SagaEarlier this week, Saga Communications announced it would no longer substitute "online only" content for the on-air ads on its station's Internet streams (RAIN coverage here). Saga EVP Warren Lada said he's not worried about losing streaming inventory because it's really not that profitable compared to other areas.

Radio Ink editor Ed Ryan reports other broadcasters may be leaning in the same direction. He writes (here), "While broadcasters know they need to be everywhere consumers want them to be, losing gobs of money to be there is not something they signed up for... When you tack on the cost of the technology paid out to make ad-insertion a part of a radio station stream, it adds to the financial headache."

And besides the costs, there's the subpar experience for the listener to consider. "Nothing sounds worse than 7 minutes of Public Service Announcements in a row."

Nothing, perhaps, except 7 minutes of ads, argues Angel Street Capital's Bob Maccini. Especially when compared with the offerings from pureplay competitors.

"This movement if successful will sound the death knell for terrestrial stations that are streaming," Maccini writes on the Angel Street Capital blog. "Given the other Internet radio listening options consumers will not choose to listen to a stream that is running 10-14 ad units an hour complete with some 60 second spots... Stopping ad insertion may save a few shekels in the short run but long term it will have more significant costs."

Instead, Maccini suggests (here) "rather than inserting PSAs and other filler content that music stations insert songs."

Audio Graphics' Ken Dardis agrees that just "regurgitating" over-the-air signals online won't work. "Radio's place online is to use what the Internet offers to expand limitations of over-the-air content. NPR does this in a remarkably successful way. So why do we not hear it being done by commercial radio industry groups?"

Online radioHe continues (here), "The radio industry belongs online, just not in the way it presents itself over-the-air."

Jacobs Media's Fred Jacobs appreciates Saga's move in that it should help improve the overall quality of its streams. "Radio streams uniformly sound like crap," he writes. "PSAs, bad music, comedy cuts, crickets, and other interstitial material has made the customer experience on radio streams a nightmare."

But he also argues, like Dardis and Maccini, that radio's digital product shouldn't just be a clone of its over-the-air signal. Web efforts required a dedicated team. "Treat digital revenue as a separate business and hire reps with digital sales experience."

Jacobs continues, "it’s time to realistically assess what’s working and what’s not. Radio needs to come to grips with the fact that in many situations, traditional radio salespeople cannot take on this effort, and that digital selling doesn’t cannibalize the traditional spot sales effort."

You can find more of Jacobs' thoughts on Jacobs Media's jacoBLOG here and here.

Non-Clear Channel b'dcasters respond to Maccini

Monday, January 30, 2012 - 11:00am

Bob MacciniFormer Ando Media CEO Bob Maccini says he's received "numerous comments" and feedback in response to his blog post last week. That blog post questioned why so many non-Clear Channel broadcasters were adding their streams to iHeartRadio (RAIN coverage here).

Maccini -- now a managing director at Angel Street Capital -- acknowledges some of the unique circumstances of various broadcasters in a follow-up blog post today. "For smaller stations that can’t afford to invest in a mobile platform iHeartRadio is a way to for their listener’s to access their streams on mobile devices [and in the car]," he writes.

That said, he reiterates a point he made last week: "Stations looking for monetization should not rely on iHeartRadio’s platform to deliver meaningful revenue."

You can find Maccini's new post at Angel Street Capital's blog here.

Maccini: iPhone 4S's "Siri" voice-recognition will be ideal for in-car listening

Wednesday, October 5, 2011 - 12:00pm

Bob MacciniFormer Ando Media CEO Bob Maccini (now a managing director at Angel Street Capital) suggests another great feature of the upcoming Apple iPhone 4S and its implication for Internet radio: the Siri voice-recognition capability, which will allow hands-/eyes-free navigation of listening options.

Maccini writes today, "I envision asking Siri to: 'stream,' 'skip song,' 'don’t play that artist,' 'pause,' 'raise volume,' 'share this track with my friends.'  The possibilities are endless and the concern over accessing content while driving and navigating through listening options is going to disappear."

Read Bob's blog here. Maccini is managing director at Angel Street Capital, and director at Aritaur Communications. He's former CEO of Ando Media (now part of Triton Digital).

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