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MillimeterThe Future of Radio
Apr 1, 2001 12:00 PM, Audrey Doyle
LAUNCHED IN 1999, LIVE365 (Foster City, CA) provides the tools and bandwidth for its 24,000 broadcasters, ranging from professional and amateur disc jockeys to businesses and corporations, to reach thousands of listeners by broadcasting from Live365.com. With 1.7 million unique visitors each month, Live365.com fills a unique niche in the broadcasting world. "With regular radio, you're limited to hearing what's available on your terrestrial dial, but at Live365.com, you can listen to more than 24,000 stations from around the world," says John Jeffrey, Live365's executive vice president of corporate strategy and general counsel. "You're no longer limited to what's being broadcast in your area."
For professional and amateur broadcasters alike, Live365 provides a way to stream audio to listeners around the globe. For corporations, the service provides a way to broadcast a message and attract new customers. "Companies also use the service to add audio to their webpages, so they can set a mood for their brand," Jeffrey says.
There are numerous companies in the Internet radio field - BroadcastAmerica.com, LAUNCHcast, Kerbango, and Sonic Box - but only Live365 provides the tools to broadcast from Internet radio stations. Live365 broadcasters provide their own audio content, but the broadcasting service, which includes up to 365 live, simultaneous MP3 streams, 365MB of server space, a listing in the Live365 directory, and revenue sharing for e-commerce sales and advertising, is free to individuals. Organizations can sign up for Live365's Private Label Radio (PLR) service, which comes in two packages: Basic and Premium.
The Basic package targets religious, political, governmental, and educational groups, such as non-profits; public radio stations; and club DJs. It includes from 25 to 200 live, simultaneous MP3 streams and a branded tuner that launches from the broadcaster's website that posts the organization's logo and a text box for a description of the broadcast or other information. The package also includes a listing in the Live365 directory, access to a private Audio Administrator page that tracks the audience, and revenue sharing for e-commerce sales and advertising. The one-time setup fee is $150, and the monthly fees range from $60 to $375, depending on the number of streams and the minimum listener-connection speed.
The Premium package is designed for commercial and college radio stations, businesses, and other groups expecting to reach a large audience and/or generate lots of revenue. This package offers the features of the Basic package, plus an additional 135MB of storage space, an option for banner and audio ads, and 365 live, simultaneous MP3 streams. The one-time setup fee is $1,000, and monthly fees range from $450 to $750, depending on the minimum listener-connection speed. Additional options for both packages are available for nominal fees.
Because Live365 is privately held, revenue details aren't available to the public. According to Jeffrey, however, the company makes money through fees garnered from sales of its PLR packages. It also sells audio ads on its site and offers an online store where listeners can purchase music. "Eventually, we'll provide links to other sites selling merchandise - books, concert tickets, and other goods related to the content you're listening to," Jeffrey says. Using proprietary technology for tracking, Live365 pays royalties to musicians and record companies featured on its network.
In September, Live365 launched a streaming MP3 player for the Windows CE platform. "With this wireless streaming product, we're showing that Internet radio can be broadcast from not just a stationary computer, but also from mobile phones, PDAs, and car stereos," Jeffery says.
Wanda Meloni, principal analyst at M2 Research (Encinitas, CA), agrees with Jeffrey's view of the future of Internet radio broadcasting, but adds that Internet radio most likely will coexist with, rather than replace, terrestrial radio. "Live365 is providing a new, interesting medium, but the old medium won't go away," she says.
As such, Meloni adds that Live365 will have to do two important things to remain a leader in the Internet radio space. "First, they'll have to sustain this concept of creating a community presence, as that's one of the top attributes an Internet site can provide, and that's how the company will be able to continue to provide something that's truly unique and different from current technologies." she says. "Second, they'll have to make sure they partner with key affiliates and technology vendors. This will help them stay ahead and prevent bigger companies from taking their lead position."
Continue the discussion on “Crosstalk” the Millimeter Forum.